Derek J. Maetzold, President and CEO of Castle Biosciences Inc . (NASDAQ:CSTL), has recently sold company shares amounting to $228,066. The transactions, which took place on January 6 and 7, 2025, involved multiple trades with prices ranging from $28.421 to $30.175 per share. The stock has since surged, showing a remarkable 20.7% gain in the past week, with InvestingPro data indicating the stock is currently trading in overbought territory.
The sales were executed under a Rule 10b5-1 trading plan, a pre-arranged plan that allows company insiders to sell a predetermined number of shares at a predetermined time. This plan was adopted by Maetzold and various family trusts on May 24, 2024. Castle Biosciences maintains strong financial health, with InvestingPro analysis showing the company holds more cash than debt and maintains a healthy current ratio of 7.78x.
Following these transactions, Maetzold maintains ownership of a significant number of shares, both directly and through various family trusts. The transactions were executed in multiple trades, with the weighted-average sale price reported for each group of transactions.
This move is part of a broader strategy by Maetzold and the associated trusts, which have been involved in similar transactions as part of their financial planning and management.
In other recent news, Castle Biosciences has achieved significant milestones. The company has gained New York State Department of Health approval for its TissueCypher Barrett's Esophagus test. This AI-driven precision medicine test is designed to predict an individual's risk of progressing from Barrett's esophagus to esophageal cancer. In addition, Castle Biosciences has announced plans to launch a test for atopic dermatitis by the end of 2025, which has shown potential in identifying patients likely to respond well to targeted therapies.
In the financial realm, Castle Biosciences reported a 39% increase in third-quarter revenue, reaching $85.8 million, primarily due to increased test volume and higher selling prices for its DecisionDx-SCC test. This strong performance led the company to revise its full-year revenue guidance to between $320 million and $330 million. Analyst firms Canaccord Genuity, BTIG, KeyBanc, and Baird have responded positively to these developments, adjusting their price targets for Castle Biosciences upward.
Despite uncertainties surrounding the reimbursement decision for DecisionDx-SCC, Castle Biosciences continues to engage in discussions to secure coverage, emphasizing the value of these tests in patient care. These recent developments underscore Castle Biosciences' strong financial performance and confident growth trajectory.
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