Biodesix Jumps 46% As Insider Buying, Retail Optimism Offset Scotiabank Target Cut

Biodesix Inc’s shares jumped Wednesday, driven by a sizable insider purchase and heightened retail investor optimism, even as Scotiabank cut its price target to $2 from $3 after the company reported weaker-than-expected first-quarter (Q1) revenue.

The stock surged 45.9% to close at $0.4 on Wednesday, before falling 11.4% in after-hours trading to $0.35.

Biodesix’s first-quarter revenue reached $17.96 million, below the analysts' anticipated $19.5 million consensus estimate.

The lowered target also reflects a downward revision of the full-year 2025 revenue guidance amid a strategic commercial shift.

Biodesix revised its 2025 revenue guidance to $80 million–$85 million, down from earlier forecasts. 

The company posted Q1 2025 revenue growth of 21% year-over-year, with diagnostic testing revenue rising 18% and development services revenue surging 61%. 

Gross margins improved to 79.4%, and net loss narrowed by 18%. 

CEO Scott Hutton said that a commercial pilot in late 2024 expanded outreach to pulmonologists and primary care physicians managing roughly half of lung nodule patients. 

After the pilot’s success, Biodesix restructured its sales team into a territory-based model across multiple specialties, delaying commercial expansion by about one quarter and contributing to the revised guidance.

Despite the revenue miss and guidance cut, Biodesix reiterated expectations to achieve adjusted EBITDA positivity by Q4 2025, supported by strong gross margins and cost efficiencies. 

Over the past month, multiple research firms have lowered their price targets on Biodesix amid a challenging outlook. 

Notably, Canaccord cut its target twice — from $3.50 to $2.50 and further down to $1.50 — citing tariffs, funding uncertainty, and below-expectation Q1 results. 

Other firms, such as Lake Street and TD Cowen, lowered their targets to $2 following a Q1 revenue miss and salesforce restructuring.

Craig-Hallum dropped its target to $1.50, anticipating further sell-offs, and William Blair downgraded the stock to ‘Market Perform’ due to slower sales-representative hiring and higher attrition.

Meanwhile, the company said Tuesday that Jack W. Schuler, a 10% owner and director, executed a purchase of 4.7 million shares on May 16 for $1.3 million. 

Schuler previously served as president and chief operating officer of Abbott Laboratories before joining Ventana. 

Currently, Schuler controls 35.9 million common shares, all held indirectly. 

On Stocktwits, retail sentiment was ‘extremely bullish’ amid a 510% surge in 24-hour message volume.

One user urged investors to "trust the process" and maintain patience, citing Biodesix’s potential to meet compliance standards and reach profitability organically by year-end. 

Meanwhile, others expressed optimism about Schuler’s recent sizable insider purchase, emphasizing his strong healthcare background and suggesting his stake could help spark renewed investor interest and upward momentum in the stock.

The stock has declined 73.3% so far in 2025.

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