Shares of Guardant Health, Inc. (NASDAQ:GH) have received a significant boost from analysts, with an average price target now set at $96.71. This figure reflects a consensus rating of “Moderate Buy” from twenty-four analysts monitoring the company, according to MarketBeat.com. Among these analysts, one has issued a sell recommendation, while the remaining twenty-three have expressed a buy rating.
In the past few weeks, various financial institutions have provided updated evaluations. Notably, Piper Sandler increased its price target from $60.00 to $90.00, assigning an “overweight” rating on October 22, 2023. Meanwhile, Guggenheim raised its target from $56.00 to $67.00 with a “buy” rating on September 25, 2023. In a more aggressive move, Wells Fargo & Company upped its price target from $93.00 to $120.00 on December 15, 2023.
Analysts have also noted significant recent activity regarding the stock’s performance. BTIG Research raised its price objective from $100.00 to $140.00, reiterating a “buy” rating on December 12, 2023. Additionally, Cowen reaffirmed its “buy” rating on the company’s shares on October 30, 2023.
Quarterly Earnings Show Positive Trends
Guardant Health reported its latest quarterly earnings on October 29, 2023. The company recorded earnings per share (EPS) of ($0.39), exceeding the consensus estimate of ($0.48) by $0.09. This marked a noteworthy increase in revenue, which was up 38.5% year-over-year. In the same quarter last year, the company reported an EPS of ($0.88). Analysts expect Guardant Health to post an EPS of ($2.90) for the current year.
Insider Transactions Indicate Confidence and Caution
In related news, several key insiders have made notable stock transactions. On December 8, 2023, Director Medina Manuel Hidalgo sold 1,250 shares at an average price of $105.00, totaling $131,250.00. Following this sale, Hidalgo’s remaining shares were valued at approximately $83,685, representing a 61.06% decrease in his holdings.
Moreover, CEO Helmy Eltoukhy sold 90,565 shares on December 15, 2023, at an average price of $103.82, amounting to over $9.4 million. Post-transaction, Eltoukhy still holds 2,047,143 shares, valued at approximately $212.5 million, reflecting a 4.24% reduction in his stake. In total, insiders have sold 426,663 shares worth around $44.5 million in the last ninety days, with insiders owning 6.10% of the company’s stock.
Institutional Investors Increase Holdings
Institutional investors have also been actively adjusting their positions in Guardant Health. Baillie Gifford & Co. increased its stake by 6.6% in the third quarter, now holding 5,127,692 shares valued at $320.4 million after acquiring an additional 317,906 shares. Invesco Ltd. saw a substantial increase of 27.3%, owning 3,558,501 shares worth $185.2 million after purchasing 763,834 shares.
Additionally, Franklin Resources Inc. raised its holdings by 26.1% during the same period, now possessing 2,926,315 shares with a value of $182.8 million. Geode Capital Management LLC and ARK Investment Management LLC also increased their stakes significantly during the second quarter.
A substantial 92.60% of Guardant Health’s stock is now held by institutional investors and hedge funds, indicating strong confidence in the company’s future prospects.
Founded in 2012 and headquartered in Redwood City, California, Guardant Health specializes in blood-based cancer diagnostics, aiming to enhance cancer care through actionable data for clinicians and researchers globally. The company’s flagship product, Guardant360, employs next-generation sequencing to detect genomic alterations in over 70 cancer-related genes, positioning Guardant Health as a key player in precision oncology.
