CareDx (NASDAQ:CDNA) Shares Pass Above 50-Day Moving Average - Here's Why

Key Points

• CareDx shares briefly rose above their 50-day moving average of $18.50, trading as high as $18.78 on Wednesday (volume ~713,196) before last trading at $17.92.
• Analysts are mixed but neutral overall — the consensus rating is Hold with an average price target of $27.33 (3 Buy, 5 Hold, 1 Sell), while some firms like Wells Fargo and BTIG raised targets and others downgraded.
• Recent quarter showed revenue of $108.39M (+25.2% YoY) beating estimates but EPS of $0.12 missed forecasts; the company has negative margins and a ~ $918M market cap, and insiders (including the CEO) have sold shares recently.

CareDx, Inc. (NASDAQ:CDNA - Get Free Report)'s share price crossed above its 50-day moving average during trading on Wednesday . The stock has a 50-day moving average of $18.50 and traded as high as $18.78. CareDx shares last traded at $17.92, with a volume of 713,196 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CDNA. Wells Fargo & Company raised their price objective on CareDx from $18.00 to $21.00 and gave the company an "equal weight" rating in a research report on Wednesday, February 25th. Weiss Ratings lowered CareDx from a "hold (c-)" rating to a "sell (d)" rating in a research report on Friday, February 27th. Craig Hallum lowered CareDx from a "buy" rating to a "hold" rating and set a $26.00 price target for the company. in a research report on Tuesday, January 6th. Wall Street Zen lowered CareDx from a "buy" rating to a "hold" rating in a research report on Saturday, February 7th. Finally, BTIG Research lifted their price target on CareDx from $25.00 to $26.00 and gave the stock a "buy" rating in a research report on Wednesday, February 25th. Three equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $27.33.

CareDx Stock Up 1.4%

The firm has a market cap of $917.86 million, a P/E ratio of -44.80 and a beta of 2.54. The company's 50 day simple moving average is $18.50 and its 200-day simple moving average is $17.73.

CareDx (NASDAQ:CDNA - Get Free Report) last announced its quarterly earnings data on Tuesday, February 24th. The company reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.24 by ($0.12). The firm had revenue of $108.39 million during the quarter, compared to the consensus estimate of $102.76 million. CareDx had a negative return on equity of 6.50% and a negative net margin of 5.65%.The firm's revenue for the quarter was up 25.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.18 EPS. Equities research analysts predict that CareDx, Inc. will post -0.9 EPS for the current year.

Insider Transactions at CareDx

In other CareDx news, CEO John Walter Hanna, Jr. sold 19,280 shares of the firm's stock in a transaction dated Thursday, January 22nd. The shares were sold at an average price of $21.16, for a total value of $407,964.80. Following the completion of the sale, the chief executive officer owned 597,405 shares of the company's stock, valued at $12,641,089.80. This trade represents a 3.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have sold a total of 29,636 shares of company stock valued at $625,949 over the last ninety days. 4.40% of the stock is owned by company insiders.

Institutional Trading of CareDx

Several institutional investors have recently added to or reduced their stakes in CDNA. Paragon Associates & Paragon Associates II Joint Venture boosted its holdings in shares of CareDx by 93.7% in the third quarter. Paragon Associates & Paragon Associates II Joint Venture now owns 425,000 shares of the company's stock valued at $6,180,000 after purchasing an additional 205,597 shares during the period. First Eagle Investment Management LLC boosted its holdings in shares of CareDx by 25.4% in the third quarter. First Eagle Investment Management LLC now owns 475,146 shares of the company's stock valued at $6,909,000 after purchasing an additional 96,123 shares during the period. ARK Investment Management LLC boosted its holdings in shares of CareDx by 3.4% in the third quarter. ARK Investment Management LLC now owns 2,170,625 shares of the company's stock valued at $31,561,000 after purchasing an additional 70,468 shares during the period. Zweig DiMenna Associates LLC boosted its holdings in shares of CareDx by 153.8% in the third quarter. Zweig DiMenna Associates LLC now owns 575,000 shares of the company's stock valued at $8,360,000 after purchasing an additional 348,400 shares during the period. Finally, Portolan Capital Management LLC boosted its holdings in shares of CareDx by 48.2% in the third quarter. Portolan Capital Management LLC now owns 933,532 shares of the company's stock valued at $13,574,000 after purchasing an additional 303,555 shares during the period.

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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