Shares in EXACT Sciences Corporation (NASDAQ:EXAS), the company which makes the Cologuard screening device for colorectal cancer, fell Wednesday under the weight of reports of heavy insider selling in the previous session.
The stock plunged 15.97% to close at $14.63 on volume of 8.26 million shares.
Technically, the stock is looking weak in the short term. On the daily chart it is falling inside a downward sloping channel and it appears that it will likely meet with support only around the 200-day line at $12.50.
The weekly chart is a different story, however, and the current downtrend is more likely a correction in a longer-term uptrend that commenced in June.
Insiders selling in EXACT Sciences Corporation (NASDAQ:EXAS)
President and CEO Kevin T Conroy sold 600,000 shares of Exact Sciences on November 15 at an average price of $17.46 a share making the total sale worth $10.5 million.
Chief Science Officer Graham Peter Lidgard sold 311,112 shares of Exact Sciences on November 15 at the average price of $17.46. His sales aggregated $5.43 million.
COO Maneesh Arora sold 562,932 of Exact Sciences on November 15 at the average price of $17.46. The total value of his sale was $9.83 million.
On a total basis, on November 15, insiders sold 1.47 million shares worth $25.76 million.
This constituted about 56% of the total volume of 2.62 million shares traded on that date.
EXACT Sciences Corporation (NASDAQ:EXAS) analyst ratings
On October 26, analysts at The Benchmark Company reaffirmed their rating on Exact at Hold but upped their price target from $14 to $17.
On November 1, analysts at Lake Street reiterated their rating on the stock at a Hold but nearly doubled their price target from $8 to $15.
EXACT Sciences Corporation (NASDAQ:EXAS) results for the third quarter
For the third quarter, the company reported EPS of $-0.36, which beat by $0.06, and revenue of $28.12 million, which beat by $2.84 million and was up 122.6% year on year.
Pointing to the solid growth in revenue, Kevin Conroy, chairman and CEO said: “This continuing strength is yielding not only good sequential and annual revenue growth, but expanding penetration in the large market for colon cancer screening. Cologuard and our compliance service, which helps to ensure patients are screened with our test, position Exact Sciences well for long-term growth.”
For 2016 the company guided for revenues in the range of $93 – $95 million, with Cologuard test volumes estimated at 240,000. The previous guidance was for revenue in the range of $90 – $100 million.