CareDx (NASDAQ:CDNA) Shares Gap Down After Earnings Miss

Key Points

• CareDx shares gapped down significantly from $13.10 to $12.12 after reporting quarterly earnings that missed expectations, with an EPS of ($0.16) compared to a consensus estimate of $0.12.
• The company's revenue decreased by 6.1% year-over-year, totaling $90.51 million for the quarter, slightly below analyst estimates of $90.72 million.
• Despite weak earnings, analysts have varying opinions, with price targets ranging from $25.00 to $40.00, and a consensus rating of "Hold" with an average target of $29.33.

CareDx, Inc. (NASDAQ:CDNA - Get Free Report) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $13.10, but opened at $12.12. CareDx shares last traded at $11.31, with a volume of 473,910 shares traded.

The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.28). CareDx had a net margin of 19.79% and a return on equity of 21.16%. The firm had revenue of $90.51 million for the quarter, compared to analyst estimates of $90.72 million. During the same period in the prior year, the company posted $0.25 earnings per share. The business's revenue was down 6.1% on a year-over-year basis.

Analysts Set New Price Targets

CDNA has been the topic of several analyst reports. HC Wainwright reaffirmed a "neutral" rating and issued a $25.00 target price on shares of CareDx in a research report on Monday, May 5th. Wall Street Zen cut CareDx from a "hold" rating to a "sell" rating in a research note on Saturday, August 2nd. The Goldman Sachs Group decreased their price target on CareDx from $34.00 to $26.00 and set a "buy" rating for the company in a research note on Thursday, April 17th. Craig Hallum decreased their price target on CareDx from $40.00 to $26.00 and set a "buy" rating for the company in a research note on Friday, July 18th. Finally, Stephens reaffirmed an "overweight" rating and set a $40.00 target price on shares of CareDx in a research note on Monday, May 5th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, CareDx has a consensus rating of "Hold" and an average price target of $29.33.

Insider Transactions at CareDx

In other news, Director Hannah Valantine sold 10,570 shares of the company's stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $19.16, for a total transaction of $202,521.20. Following the completion of the transaction, the director directly owned 38,994 shares of the company's stock, valued at $747,125.04. This represents a 21.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Peter Maag sold 10,000 shares of the stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $18.58, for a total value of $185,800.00. Following the transaction, the director directly owned 308,846 shares of the company's stock, valued at $5,738,358.68. This trade represents a 3.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 109,097 shares of company stock worth $1,955,113. Insiders own 4.40% of the company's stock.

Institutional Trading of CareDx

A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in shares of CareDx by 7.1% in the 4th quarter. Vanguard Group Inc. now owns 4,859,732 shares of the company's stock valued at $104,047,000 after purchasing an additional 323,554 shares in the last quarter. Invesco Ltd. lifted its stake in shares of CareDx by 76.1% in the 1st quarter. Invesco Ltd. now owns 2,667,861 shares of the company's stock valued at $47,355,000 after purchasing an additional 1,153,011 shares during the period. Bamco Inc. NY lifted its stake in shares of CareDx by 17.6% in the 4th quarter. Bamco Inc. NY now owns 2,207,299 shares of the company's stock valued at $47,258,000 after purchasing an additional 330,627 shares during the period. Fred Alger Management LLC raised its stake in CareDx by 7.3% during the 4th quarter. Fred Alger Management LLC now owns 1,613,992 shares of the company's stock worth $34,556,000 after buying an additional 110,471 shares during the period. Finally, Gagnon Securities LLC raised its stake in CareDx by 8.9% during the 2nd quarter. Gagnon Securities LLC now owns 1,548,912 shares of the company's stock worth $30,266,000 after buying an additional 127,223 shares during the period.

CareDx Stock Performance

The firm has a market capitalization of $633.64 million, a price-to-earnings ratio of 9.86 and a beta of 2.22. The business has a 50 day moving average of $17.13 and a two-hundred day moving average of $18.63.

About CareDx

CareDx, Inc engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients.

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