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WGSGeneDx Holdings Corp.Sell5.6·$53.42+2.32%
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GeneDx Holdings Corp. (WGS) Stock Analysis

Recovery setup

SellVALUE-TRAP 2/5Moderate Confidence

Healthcare · Diagnostics & Research

Sell if holding. Engine safety override at $53.42: Quality below floor (3.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 1.9:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 32%; Below-average business quality; Negative price momentum.

GeneDx provides exome and whole genome sequencing primarily for pediatric rare disease diagnosis, backed by one of the world's largest rare disease datasets (GeneDx Infinity™, 2.5M+ tests). Nearly all 2025 revenue was from diagnostic test reports reimbursed by third-party... Read more

$53.42+29.3% A.UpsideScore 5.6/10#11 of 26 Diagnostics & Research
QualityF-score6 / 9FCF yield0.24%
Stop $48.17Target $66.99(analyst − 13%)A.R:R 1.9:1
Analyst target$77.00+44.1%9 analysts
$66.99our TP
$53.42price
$77.00mean
$100

Sell if holding. Engine safety override at $53.42: Quality below floor (3.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 1.9:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 32%; Below-average business quality; Negative price momentum. Chart setup: Death cross but MACD improving, RSI 71. Score 5.6/10, moderate confidence.

Passes 5/9 gates (favorable risk/reward ratio, news events none recent, earnings proximity 50d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and clean insider activity and death cross (50MA < 200MA). Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-09
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Jul 28, 202650d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Supplier: limited number of suppliers
Quality below floor (3.9 < 4.0)
Value-trap signals (2/5): Margin compression (op margin 1.0%), Material insider selling (8 sells, 0.20% of cap)

Key Metrics

P/E (TTM)
P/E (Fwd)42.4
Mkt Cap$1.6B
EV/EBITDA-197.1
Profit Mgn-17.6%
ROE-30.4%
Rev Growth17.4%
Beta1.97
DividendNone
Rating analysts13

Quality Signals

Piotroski F6/9MoatNarrow

Options Flow

P/C0.68bullish
IV87%elevated

Concentration Risks(10-K Item 1A)

  • HIGHSupplierlimited number of suppliers
    10-K Item 1: 'We rely on a limited number of suppliers, including Illumina, Inc., Life Technologies Corporation, Twist Biosciences Corporation, Path-Tec LLC and Agilent Technologies. for certain laboratory reagents'

Material Events(8-K, last 90d)

  • 2026-03-02Item 1.02MEDIUM
    GeneDx terminated its existing credit agreement with Perceptive Credit Holdings IV, LP on February 27, 2026 upon entering a new $100M term loan with Blackstone. Perceptive facility repaid in full.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

4 floor-breakers

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position
0.0
Support Resistance
2.7
Bollinger
2.9

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
0.4
Growth Rank
5.8
Value Rank
6.9

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.7
Obv
1.0
Rsi
2.9
Ma Position
4.0
Macd
10.0
Overbought bear rally (RSI 71)Volume distribution (falling OBV)Below 200-MA, MA slope -6.7%/30d — confirmed downtrend

Unprofitable operations — net margin -17.6%. Quality floor flags this regardless of sector context.static

Roe
0.0
Roa
0.0
Operating Margin
0.0
Net Margin
0.0
Rule Of 40
3.0
Fcf Quality
3.2
Moat
6.5
Piotroski F
6.7
Gross Margin
9.9
Current Ratio
9.9
FCF-positive despite GAAP loss (FCF margin 1%, FCF yield 0.2%)Rule of 40: 18 (fail)
GatesMomentum 3.7<4.5INSIDER 4.94%=EXTREMEDeath cross (50MA < 200MA)8K FLAG 1.02A.R:R 1.9 ≥ 1.5NEWS EVENTS NONE RECENTEARNINGS PROXIMITY 50d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
71 · Overbought
20D MA 50D MA 200D MADEATH CROSSSupport $37.64Resistance $57.15

Price Targets

$48
$67
A.Upside+25.4%
A.R:R1.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.9 < 4.0)
! Value-trap signals (2/5): Margin compression (op margin 1.0%), Material insider selling (8 sells, 0.20% of cap)
! momentum at 3.7 (below the engine's 4.5 threshold)

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-28 (50d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is WGS stock a buy right now?

Sell if holding. Engine safety override at $53.42: Quality below floor (3.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 1.9:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 32%; Below-average business quality; Negative price momentum. Chart setup: Death cross but MACD improving, RSI 71. Prior stop was $48.17. Score 5.6/10, moderate confidence.

What is the WGS stock price target?

Take-profit target: $66.99 (+29.3% upside). Prior stop was $48.17. Stop-loss: $48.17.

What are the risks of investing in WGS?

Concentration risk — Supplier: limited number of suppliers; Quality below floor (3.9 < 4.0); Value-trap signals (2/5): Margin compression (op margin 1.0%), Material insider selling (8 sells, 0.20% of cap).

Is WGS overvalued or undervalued?

GeneDx Holdings Corp. trades at a P/E of N/A (forward 42.4). TrendMatrix value score: 7.5/10. Verdict: Sell.

What do analysts say about WGS?

13 analysts cover WGS with a consensus score of 4.2/5. Average price target: $77.

What does GeneDx Holdings Corp. do?GeneDx provides exome and whole genome sequencing primarily for pediatric rare disease diagnosis, backed by one of the...

GeneDx provides exome and whole genome sequencing primarily for pediatric rare disease diagnosis, backed by one of the world's largest rare disease datasets (GeneDx Infinity™, 2.5M+ tests). Nearly all 2025 revenue was from diagnostic test reports reimbursed by third-party payors; ~1.5% of revenues are from outside the U.S. The proprietary dataset creates a diagnostic flywheel—each new test improves interpretation accuracy.

Related stocks: SHC (Sotera Health Company) · NEO (NeoGenomics, Inc.) · BLLN (BillionToOne, Inc.) · VCYT (Veracyte, Inc.) · MEDP (Medpace Holdings, Inc.)
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