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EXACT Sciences Corporation (EXAS) Rises on Bullish Analyst Note

EXACT Sciences Corporation (NASDAQ:EXAS) shares are higher in the pre-market after Doug Schenkel of Cowen initiated an ‘Outperform’ rating and set a $30 price target on the stock. Schenkel notes that Exact’s Cologuard screening product is targeting a $4 billion per annum market opportunity, which the analyst expects to allow Cologuard to grow at a 5 year average revenue CAGR of around 50%. The analyst also notes that Exact Sciences has made some progress in recent quarters, having won CMS reimbursement coverage, and having increased its sales-force/advertising efficiency.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

The smart money wasn’t as bullish on EXACT Sciences in the fourth quarter as analysts are now. Of the 742 elite funds we track, 18 funds owned $139.65 million of EXACT Sciences Corporation (NASDAQ:EXAS) and accounted for 9.60% of the float on December 31, versus 31 funds and $251.1 million respectively on September 30. D E Shaw cut its stake by 15% to 4.6 million shares while Samuel Isaly‘s Orbimed Advisors trimmed its holdings by 14% to 950,000 shares.

There is also a sizable amount of doubters. According to FINVIZ, around 30% of the company’s float is still short.

The Bottom Line

After being beaten up due to various events last year, sentiment in EXACT Sciences Corporation (NASDAQ:EXAS) is improving as Wall Street becomes more bullish. Whether or not the company will be a great long term holding will depend on how well management executes.


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