CareDx (NASDAQ:CDNA) Shares Gap Down on Disappointing Earnings

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) gapped down prior to trading 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 for the quarter, missing the consensus estimate of $0.12 by ($0.28). CareDx had a net margin of 17.97% and a return on equity of 18.03%. The firm had revenue of $90.51 million during the quarter, compared to analyst estimates of $90.72 million. During the same period in the previous year, the firm posted $0.25 EPS. The company's revenue for the quarter was down 6.1% compared to the same quarter last year.

Analysts Set New Price Targets

CDNA has been the subject of several research analyst reports. Stephens reiterated an "overweight" rating and set a $40.00 target price on shares of CareDx in a research note on Monday, May 5th. HC Wainwright restated a "neutral" rating and set a $25.00 price objective on shares of CareDx in a research note on Monday, May 5th. Wells Fargo & Company dropped their target price on CareDx from $19.00 to $14.00 and set an "equal weight" rating on the stock in a research report on Friday. The Goldman Sachs Group lowered their price target on CareDx from $34.00 to $26.00 and set a "buy" rating on the stock in a report on Thursday, April 17th. Finally, Craig Hallum lowered their target price on CareDx from $40.00 to $26.00 and set a "buy" rating on the stock in a report on Friday, July 18th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $27.67.

Insider Activity at CareDx

In related news, Director William A. Hagstrom sold 19,391 shares of the business's stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $19.90, for a total value of $385,880.90. Following the sale, the director owned 53,979 shares of the company's stock, valued at $1,074,182.10. The trade was a 26.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Hannah Valantine sold 10,570 shares of the business's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $19.16, for a total value of $202,521.20. Following the completion of the transaction, the director directly owned 38,994 shares in the company, valued at approximately $747,125.04. This represents a 21.33% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 79,961 shares of company stock valued at $1,490,102 in the last 90 days. 4.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CareDx

Large investors have recently modified their holdings of the business. MCF Advisors LLC boosted its position in shares of CareDx by 292.9% during the second quarter. MCF Advisors LLC now owns 1,336 shares of the company's stock worth $26,000 after buying an additional 996 shares during the period. Sterling Capital Management LLC increased its stake in shares of CareDx by 771.2% during the fourth quarter. Sterling Capital Management LLC now owns 1,272 shares of the company's stock worth $27,000 after purchasing an additional 1,126 shares during the period. Allworth Financial LP bought a new position in shares of CareDx during the second quarter worth approximately $40,000. PNC Financial Services Group Inc. increased its stake in CareDx by 20,200.0% during the 1st quarter. PNC Financial Services Group Inc. now owns 4,466 shares of the company's stock worth $79,000 after acquiring an additional 4,444 shares during the period. Finally, Tower Research Capital LLC TRC increased its stake in CareDx by 553.7% during the 4th quarter. Tower Research Capital LLC TRC now owns 3,922 shares of the company's stock worth $84,000 after acquiring an additional 3,322 shares during the period.

CareDx Stock Performance

The stock has a fifty day simple moving average of $16.95 and a two-hundred day simple moving average of $18.43. The stock has a market cap of $633.70 million, a price-to-earnings ratio of 11.67 and a beta of 2.22.

CareDx Company Profile

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.