EXACT Sciences Corporation (NASDAQ: EXAS) is off to an overwhelmingly rough day in the market today, and for good reason. Citron released a sell-side report on the stock, leading to concerns among investors and sending the stock tumbling downward. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (11:02), EXAS is trading at $31.77 per share after a loss of $2.00 per share or 5.92% thus far today.
EXAS Falls On Citron Report
As mentioned above, EXACT Sciences is off to an overwhelmingly rough start to the trading session today after Citron released a short report on the stock. In the report, Citron says that the company is making a business out of pushing a cancer test, known as Cologuard, to the public that is inferior by their own admission. As a result, the company is losing money in the process. In the first few paragraphs of the report, you can get the gist. Here’s what they had to say…
“EXACT Sciences (NASDAQ: EXAS) pushes a cancer test (Cologuard) to the public, inferior by its own admission, and loses money doing it. That is why this $4 billion company is mainly owned by passive investing ETFs and other healthcare baskets.
More importantly, as Citron will expose, the key metrics not disclosed by EXACT sciences are getting worse, while Medicare pricing inefficiencies end next January and investors will be left with a decaying asset with no terminal value.
This stock is a poster child for what goes wrong when Wall Street gets ahold of a health care concept with no discrimination for whether its a good or bad medicine.”
To read the full Citron report on EXAS, click here.
Stop wasting your time! Find winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on EXAS. In particular, we’re interested in following to see how the company responds to the short side report. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!