GeneDx's Chief Operating Officer Sold Nearly 6,000 Shares. Is the Stock a Buy or Sell?

Source The Motley Fool

Key Points

  • COO Bryan Dechairo sold 5,961 directly-held shares for a transaction value of approximately $510,900 on Feb. 4, 2026.

  • The sale represented 100% of Mr. Dechairo's direct ownership, reducing his direct holdings from 5,961 shares to zero.

  • No indirect holdings or derivative transactions were involved; the transaction was conducted through multiple open-market trades.

  • 10 stocks we like better than GeneDx ›

Chief Operating Officer Bryan Dechairo executed an open-market sale of 5,961 shares of GeneDx Holdings (NASDAQ:WGS) on Feb. 4, 2026, totaling approximately $510,900 in proceeds according to the SEC Form 4 filing.

Transaction summary

MetricValue
Shares sold (direct)5,961
Transaction value~$510,900
Post-transaction shares (direct)0

Transaction value based on SEC Form 4 weighted average purchase price ($85.70).

Key questions

  • What proportion of Bryan Dechairo's direct equity stake was affected by this transaction?
    This transaction represented a complete disposition, as 100% of Mr. Dechairo's direct holdings were sold, reducing his direct ownership from 5,961 shares to zero.
  • Was there any indirect participation or involvement of derivative securities in the reported sale?
    No indirect shares or derivative securities were involved; the transaction affected only direct equity.
  • How does the sale relate to prior trading activity and available share capacity?
    With this transaction, Mr. Dechairo exited his available direct share capacity, fully aligning the trade size with the remaining direct shares following earlier administrative dispositions.
  • What trading plan governed this transaction, and what are the implications for future insider activity?
    The sale was executed under a pre-established Rule 10b5-1 trading plan adopted Sept. 15, 2025; following this transaction, Mr. Dechairo holds only unvested RSU awards, removing him from the direct equity holder base absent additional vesting or grants.

Company overview

MetricValue
Revenue (TTM)$402.19 million
Net income (TTM)$2.08 million
Price (as of market close 2/4/26)$85.70
1-year price change(15.56%)

* 1-year price change calculated using Feb. 4, 2026 as the reference date.

Company snapshot

  • GeneDx Holdings offers AI-driven health intelligence solutions, leveraging the Centrellis platform to analyze clinical and genomic data for disease understanding and personalized healthcare.
  • It generates revenue primarily through the provision of data-driven healthcare information services and science-based solutions to medical providers and institutions.
  • The company targets healthcare providers, research institutions, and organizations seeking advanced genomic and clinical insights to improve patient outcomes.

GeneDx Holdings operates at scale with approximately 1,000 employees and a market capitalization of $2.44 billion. The company differentiates itself through its proprietary AI and machine learning capabilities, enabling comprehensive modeling of human health trajectories. Its focus on integrating multidimensional data positions it as a leader in delivering actionable health intelligence to the medical sector.

What this transaction means for investors

The Feb. 4 sale by GeneDx COO Bryan Dechairo was performed as part of a Rule 10b5-1 trading plan, which he adopted in September of 2025. A Rule 10b5-1 trading plan is often implemented by insiders to avoid accusations of making trades based on insider information.

However, it’s concerning he disposed of all directly-held GeneDx shares. Mr. Dechairo owns restricted stock units (RSUs) with the right to receive up to an aggregate 28,123 shares of Class A stock. But at this point, it’s not known if he will continue to sell once he acquires those RSUs.

His transaction came at a time when GeneDx shares were declining, in part due to Mr. Dechairo’s aggressive disposition of company stock. Shares had reached a multi-year high of $170.87 in December before the downturn.

From a business perspective, GeneDx is seeing excellent sales growth. Its 2025 revenue rose 41% year over year to $427.5 million. That said, the company wasn’t profitable, posting a $21 million net loss last year.

With the share price decline, its price-to-sales ratio is around six, a low for the year, meaning its valuation looks compelling for a buy but not to sell. Yet due to the insider sales, the prudent approach is to watch the company’s performance over the next couple of quarters before deciding to buy or sell.

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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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