Photo by Anastasiya Gepp on Pexels.com

Biotechnology Juggernaut Veracyte (VCYT) Up 27% a Day after Beating Estimates

Heavyweight Fund Managers Propelling Veracyte (VCYT) Up The Charts

(By Glenford S. Robinson)

Veracyte (NASDAQ: VCYT) up 27% a day after beating analyst consensus estimate of $0.25 by 52%. The company reported quarterly losses of $0.12 per share from the same period last year. Veracyte reported quarterly sales of $23.466 million beating analyst consensus estimate of $21.5 million by 9.14%. This is a whopping 33.95% increase surpassing sales of $17.519 million the same period last year.

On Tuesday, October 30, 2018 VCYT stock price shot up 27% to $11.98 after the company boosted revenue guidance for 2018 forecasting revenue of $90 million to $91 million surpassing its previous guidance of $87 million to $89 million.
Things are definitely looking up for the Genomic diagnostic company. Heck, the company stated that third-quarter revenue rose 34%.

Not only that, Veracyte has a bucket load of high-profile retirement fun managing companies buying up blocks of shares in the company. Some of these high-profile retirement fund managing companies are Blackrock and JP Morgan to name a few.

There is a saying in the investing circle, you go to do what the big boys do. So, if the big boys are putting money in company “A,” you better follow suit if you want to be successful like them.

The company has joined the distinguished list of companies that have hit 52-week highs with its mark of $12.13 per share. This is juicy information if you are those traders who trades the 52-week high stocks from a bullish or bearish perspective.

VCYT has seen its stock price steadily rise up the chart since the beginning of April 2018, April 2nd to be exact.

The company’s profile is very intriguing. It promotes itself as a genomic diagnostic company, one that uses genomic technology to resolve diagnostic ambiguity in patients by targeting diseases. This unravelling of diagnostic ambiguity process inevitably causes patients to undergo invasive procedures.
Veracyte claims that its products combine genomic technology, Clinical science, and machine learning. Heavy stuff!

The company sells three genomic tests, which it says is transforming the diagnosis of thyroid cancer, lung cancer, and idiopathic pulmonary fibrosis.

These tests are the Afirma Thyroid fine needle aspiration (FNA) Analysis, which “centers on the Afirma Gene Expression Classifier (GEC).” The Afirma GEC is offered as part of a solution that includes cytopathology or is offered directly as a stand-alone test.

The company states that it operates in the pulmonary diagnostics market and seems to be a significant player as a result of the attention that it has received from top retirement mutual fund investment managing companies, such as Blackrock Investment Management, JP Morgan Securities, Morgan Stanley, Goldman Sachs, and Vanguard Fiduciary Trust to name a few, (Factset Research Systems).

Veracyte’s other offerings are Percepta Bronchial Genomic Classifier, a genomic test resolving ambiguity arising in lung cancer diagnosis; and Envisia Genomic Classifier, a test the company designed to help in the assessment of patients who are suspected of having idiopathic pulmonary fibrosis.

That is not all. Veracyte reported on August 31, 2018 according to Benzinga that the company had received a draft Medicare local coverage determination for its Envisa Genomic Classifier. “The Envisa Classifier, which is built on next-generation RNA sequencing and machine learning technology, is the first test to achieve this significant Medicare coverage milestone for use in diagnosing idiopathic pulmonary fibrosis,” Veracyte said. The stock went up 5.37 percent to $12.95 in aftermarket trading.

So, why the Mstardom Finance team find this stock interesting? The reason is because this stock has made its way unto Mstardom Finance stock screener.

Members of our team doesn’t have to go far to find stocks that are eye candies or stocks that tickles the trader’s eye. You maybe wondering where in the world can people find the Mstardom Finance Stock Screener, Cryptocurrency Screener, and Forex Currency Screener? Well, you guessed it, on the Mstardom.com screener page.

Also, retail traders must keep in mind that almost all stocks experiencing a hyperbolic rise into space must one day comes crashing back down to Earth. Therefore, Veracyte is no exception to such rule. So, traders should expect an inevitable VCYT pullback before further advancements up the charts.

From a Technical Analysis point of view, our (Mstardom Finance) proprietary trading strategy told us that the moving average accumulated over a month’s time is $11.54. Therefore, we should buy the stock when it falls below $11.54 preferably when it falls anywhere between $8.85 and 11.54. On the other hand, we should sell the stock when it gets close to the $14.32 level or above. Don’t be greedy, though. You don’t have to wait until the price hits the $14.32 target before you take profit. You can take profit at any price point that is close. In fact, anywhere between $14.32 and $17.00 is a good take-profit point.

Keep in mind that the stock VCYT will continue to rise with a steady moving-average-increase to the upside with the occasional temporary pullback. This stock is a good stock to buy the dips on and sell the highs. At a later date, we will probably write another technical analysis.

Disclosure: I/we/Mstardom Finance do not own shares in VCYT.

Disclaimer: ©Mstardom, Inc., Mstardom.com, Mstardom Finance is not Financial Advisor or Investment Advisor.

Sources:

Benzinga Newsdesk

Factset Research Systems

Dow Jones Newswires

Check Also

GDP Growth Slowed

US Economy Starts to Slow Entering 2019, but Headwinds Ease

The Federal Reserve has signaled that it will postpone further interest rate hikes until signs of rising inflation emerge and cease balance sheet normalization activities towards the end of this year. Stock price gains since the announcement of these policy shifts illustrate that if they are executed, business confidence is likely to rise.

Where can I get business financing?

Horizon Technology Finance Provides Investment Portfolio Update Increases Portfolio Size with $24 Million in Loan Originations; Grows Committed Backlog to $47 Million

"During the third quarter, we experienced solid investment activity, increasing the size of our portfolio and expanding our committed backlog for the second consecutive quarter," said Gerald A. Michaud, President of Horizon. "Our success funding seven loans, totaling more than $24 million, and growing our committed backlog to $47 million underscores the strong demand for our venture debt products to growing life science and technology companies. We believe Horizon will continue to benefit from a robust pipeline of investment opportunities and is well positioned to deliver long-term, disciplined portfolio growth, while ensuring credit quality remains strong."

ECB profit increased in 2018

Financial Statements of the ECB for 2018

The ECB’s net profit is distributed to the euro area national central banks (NCBs). The Governing Council decided to make an interim profit distribution, amounting to €1,191 million, to the euro area NCBs on 31 January 2019. At yesterday’s meeting, the Governing Council decided to distribute the remainder of the profit, amounting to €384 million, on 22 February 2019.

Litigation Photo

Immune Design (IMDZ) Alert: Johnson Fistel Investigates Proposed Sale of Immune Design Corp.; Are Immune Design Shareholders Getting a Fair Deal?

The investigation concerns whether the Immune Design board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Immune Design shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given that one Wall Street analyst has a $9.00 price target on the stock and the Company has approximately $100 million in cash and no long-term debt.

Mergers and Acquisitions

Merck to Acquire Immune Design; Acquisition Bolsters Capabilities in Vaccine Development for Infectious Diseases and Cancer

“Scientists at Immune Design have established a unique portfolio of approaches to cancer immunization and adjuvant systems designed to enhance the ability of a vaccine to protect against infection, which could meaningfully improve vaccine development," said Dr. Roger M. Perlmutter, president, Merck Research Laboratories. “This acquisition builds upon Merck’s industry-leading programs that harness the power of the immune system to prevent and treat disease.”

SEC Files Charges in Elaborate Microcap Stock Fraud

“As alleged in our complaint, Magna Group and its co-defendants used fake debt instruments to unlawfully obtain shares in microcap companies, which they then dumped on unsuspecting retail investors,” said Sanjay Wadhwa, Senior Associate Director of the SEC’s New York Regional Office. “This action demonstrates the resolve of the SEC in pursuing fraudsters who use elaborate financing schemes to engage in securities fraud.”

Investor Alert and Bulletin From SEC Office of Investor Education and Advocacy

Know how to be a better investor. Did you know that active trading and some other very common investing behaviors actually can undermine investment performance? According to researchers, other common investing mistakes include focusing on past performance, favoring investments from your own country, region, state, or company, and holding on to losing investments too long and selling winning investments too soon.

%d bloggers like this: