CareDx (NASDAQ:CDNA) Shares Gap Down - Here's Why

Key Points

• CareDx shares gapped down ahead of Friday’s trading, opening at $37.79 after closing at $40.34, though the stock later traded near $39.97.
• Analyst sentiment is mixed but constructive: recent moves included a Wall Street Zen upgrade to strong-buy and BTIG raising its target to $45, while the broader consensus remains Hold with an average target of $33.67.
• Recent fundamentals were strong, as CareDx beat quarterly earnings and revenue estimates and posted 39.3% year-over-year revenue growth, even as insiders sold shares and the stock remains volatile.

CareDx, Inc. (NASDAQ:CDNA - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $40.34, but opened at $37.79. CareDx shares last traded at $39.9720, with a volume of 460,089 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on CDNA. Wall Street Zen upgraded shares of CareDx from a "buy" rating to a "strong-buy" rating in a research report on Sunday, May 3rd. BTIG Research raised their target price on shares of CareDx from $28.00 to $45.00 and gave the stock a "buy" rating in a report on Thursday. Craig Hallum reaffirmed a "hold" rating and set a $35.00 price target on shares of CareDx in a research note on Thursday. Finally, Weiss Ratings downgraded shares of CareDx from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, CareDx currently has a consensus rating of "Hold" and an average price target of $33.67.

CareDx Stock Performance

The stock has a fifty day moving average of $24.85 and a 200-day moving average of $21.14. The company has a market cap of $2.05 billion, a PE ratio of -248.12 and a beta of 2.43.

CareDx (NASDAQ:CDNA - Get Free Report) last released its earnings results on Tuesday, April 28th. The company reported $0.34 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.23. The business had revenue of $117.70 million for the quarter, compared to analyst estimates of $102.03 million. CareDx had a negative return on equity of 2.65% and a negative net margin of 2.01%.The business's revenue was up 39.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.09 earnings per share. As a group, equities analysts anticipate that CareDx, Inc. will post 0.22 EPS for the current fiscal year.

Insider Activity

In related news, CEO John Walter Hanna, Jr. sold 39,900 shares of CareDx stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $29.24, for a total transaction of $1,166,676.00. Following the completion of the sale, the chief executive officer owned 661,959 shares in the company, valued at $19,355,681.16. This trade represents a 5.68% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Hannah Valantine sold 12,103 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $23.11, for a total transaction of $279,700.33. Following the completion of the sale, the director directly owned 36,686 shares of the company's stock, valued at approximately $847,813.46. This trade represents a 24.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 78,936 shares of company stock worth $2,093,708 in the last ninety days. 2.40% of the stock is currently owned by insiders.

Institutional Trading of CareDx

Large investors have recently modified their holdings of the company. Goldman Sachs Group Inc. increased its holdings in CareDx by 18.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,110,014 shares of the company's stock worth $19,703,000 after purchasing an additional 170,504 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of CareDx by 11.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 133,966 shares of the company's stock worth $2,378,000 after buying an additional 13,619 shares during the period. JPMorgan Chase & Co. lifted its holdings in shares of CareDx by 41.2% in the 2nd quarter. JPMorgan Chase & Co. now owns 68,602 shares of the company's stock worth $1,340,000 after buying an additional 20,028 shares during the period. First Trust Advisors LP bought a new position in shares of CareDx during the 2nd quarter worth $1,822,000. Finally, Nebula Research & Development LLC bought a new position in shares of CareDx during the 2nd quarter worth $281,000.

About CareDx

CareDx, Inc NASDAQ: CDNA is a precision diagnostics company focused on the care of transplant patients. The firm develops and commercializes non‐invasive tests designed to detect organ transplant rejection and infection risk, helping physicians make informed management decisions throughout the post‐transplant journey.

The company's core product portfolio includes AlloMap®, a gene expression profiling test for heart transplant recipients, and AlloSure®, a donor‐derived cell‐free DNA assay used primarily in kidney transplant monitoring.

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