Derek Maetzold, the President and Chief Executive Officer of Castle Biosciences Inc . (NASDAQ:CSTL), recently sold shares of the company's common stock valued at approximately $265,357. The transactions, executed on December 17, involved the sale of 9,364 shares at prices ranging from $28.333 to $28.759 per share. Following these sales, Maetzold retains direct ownership of 84,762 shares. The timing of the sale coincides with the stock's recent 8.9% decline over the past week, though InvestingPro data shows the company maintains a GREAT financial health score.
The sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks in a manner that avoids concerns about insider trading. In addition to his direct holdings, Maetzold holds shares indirectly through various trusts, including The Maetzold Descendants 2020 Trust and several others established for the benefit of his children. The company's strong financial position is evidenced by its impressive current ratio of 7.78, indicating robust liquidity.
These transactions are part of routine financial management by Maetzold, who continues to maintain significant holdings in Castle Biosciences. The company, based in Friendswood, Texas, specializes in medical laboratory services and has been actively trading on the NASDAQ under the ticker CSTL. With remarkable revenue growth of 62.4% over the last twelve months, Castle Biosciences shows strong business momentum. For detailed analysis and additional insights, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.
In other recent news, Castle Biosciences has seen a series of upgrades and positive reviews from analyst firms following robust revenue growth. Canaccord Genuity maintained a Buy rating on the company, highlighting the potential for the TissueCypher test to generate substantial revenue growth. The firm set a price target of $42.00 for Castle Biosciences. KeyBanc Capital Markets also expressed an optimistic outlook, increasing the price target to $36 from the previous $28.
BTIG raised the company's stock price target to $45.00 from $40.00, reiterating a Buy rating. Baird increased the stock price target to $39.00, maintaining an Outperform rating on the stock. These upgrades reflect the company's strong quarterly performance and expected growth in its diagnostic test offerings. Castle Biosciences reported a 39% increase in third-quarter revenue to $85.8 million, leading the company to revise its full-year revenue guidance to between $320 million and $330 million.
The company continues to engage in discussions to secure coverage for its DecisionDx-SCC test. Despite this uncertainty, Castle Biosciences is planning to launch a new test by the end of 2025 and is focusing on strategic investments for long-term growth. These recent developments underscore Castle Biosciences' strong financial performance and confident growth trajectory.
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