Veracyte CFO Rebecca Chambers sells $585,663 in company stock

Rebecca Chambers, Chief Financial Officer of Veracyte, Inc. (NASDAQ:), recently sold 15,275 shares of the company’s common stock. The sales, executed on November 12, were conducted under a Rule 10b5-1 trading plan adopted by Chambers in August 2024. The shares were sold at a weighted average price of $38.34, with sale prices ranging from $38.04 to $38.78, totaling $585,663. Following these transactions, Chambers retains direct ownership of 124,501 shares in Veracyte.

In other recent news, Veracyte, Inc. reported a noteworthy increase in its third-quarter revenue for 2024, with a record-breaking $115.9 million, marking a 29% rise from the previous year. This surge was largely driven by a robust performance in its testing business, particularly its Decipher and Afirma tests. In line with these developments, Veracyte raised its total revenue guidance for 2024, indicating confidence in its growth trajectory and market expansion strategies.

The company's testing revenue grew by 34%, with Decipher tests up by 36% and Afirma tests increasing by 12% in volume. Veracyte also reported a GAAP net income of $15.2 million, with an adjusted EBITDA of $27.3 million, or 24% of revenue.

Despite anticipating a $6 million revenue setback due to the pause in Envisia CLIA test because of low market penetration, Veracyte remains optimistic about its future growth. Plans include expanding Decipher into the metastatic prostate cancer market and launching a MRD test for bladder cancer in 2026. The company also anticipates Medicare reimbursement for Decipher's metastatic prostate cancer market expansion by late 2024 or early 2025. The company's leadership is focused on maintaining growth momentum into 2025 and beyond, supported by strong cash reserves forecasted to be between $280 million to $285 million by year-end.

InvestingPro Insights

As Rebecca Chambers, CFO of Veracyte, Inc. (NASDAQ:VCYT), executes a significant stock sale, it's crucial to consider the broader financial context of the company. According to InvestingPro data, Veracyte boasts a market capitalization of $2.87 billion, reflecting its substantial presence in the healthcare sector. The company's revenue growth is noteworthy, with a 23.95% increase over the last twelve months as of Q3 2024, reaching $425.33 million. This robust growth trajectory aligns with an InvestingPro Tip indicating that net income is expected to grow this year.

Veracyte's financial health appears solid, with InvestingPro Tips highlighting that the company holds more cash than debt on its balance sheet and that its liquid assets exceed short-term obligations. This strong financial position may provide reassurance to investors in light of the CFO's stock sale.

The stock's performance has been impressive, with a 56.55% price total return over the past year. This aligns with another InvestingPro Tip noting Veracyte's high return over the last year. The company's stock price is currently at 89.4% of its 52-week high, suggesting continued investor confidence despite the recent insider sale.

It's worth noting that while Veracyte shows promise, it faces some challenges. The company was not profitable over the last twelve months, although analysts predict profitability this year. Additionally, the stock is trading at high EBIT and EBITDA valuation multiples, which investors should consider when evaluating its current price point.

For readers interested in a deeper analysis, InvestingPro offers 13 additional tips on Veracyte, providing a more comprehensive view of the company's financial landscape and future prospects.

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