CareDx (NASDAQ:CDNA) Trading Down 8.7% - What's Next?

Key Points

• Shares fell 8.7% to about $20.01 on Wednesday on light trading (~198,080 shares, down 72% vs. average); the company has a market cap near $954 million and a beta of 2.54.
• CareDx beat quarterly expectations (EPS $0.34 vs $0.13; revenue $117.7M vs $102.29M, +39.3% YoY) but remains unprofitable (net margin -5.65%, negative ROE) and analysts forecast -0.14 EPS for the year.
• Analyst views are mixed with a consensus "Hold" and $28 target (2 Buys, 5 Holds, 1 Sell), and the CEO disclosed a sale of 10,282 shares under a Rule 10b5-1 plan.

CareDx, Inc. (NASDAQ:CDNA - Get Free Report) dropped 8.7% during trading on Wednesday . The stock traded as low as $20.29 and last traded at $20.0140. Approximately 198,080 shares were traded during trading, a decline of 72% from the average daily volume of 700,583 shares. The stock had previously closed at $21.91.

Analyst Upgrades and Downgrades

CDNA has been the subject of several recent analyst reports. Wells Fargo & Company boosted their price objective on CareDx from $18.00 to $21.00 and gave the stock an "equal weight" rating in a report on Wednesday, February 25th. Craig Hallum lowered shares of CareDx from a "buy" rating to a "hold" rating and set a $26.00 target price for the company. in a research report on Tuesday, January 6th. Wall Street Zen upgraded shares of CareDx from a "hold" rating to a "buy" rating in a research report on Saturday. BTIG Research upped their target price on shares of CareDx from $26.00 to $28.00 and gave the stock a "buy" rating in a research report on Wednesday. Finally, Weiss Ratings lowered shares of CareDx from a "hold (c-)" rating to a "sell (d)" rating in a research report on Friday, February 27th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $28.00.

CareDx Stock Down 15.0%

The business's 50-day simple moving average is $18.48 and its 200 day simple moving average is $18.23. The firm has a market capitalization of $953.95 million, a P/E ratio of -46.85 and a beta of 2.54.

CareDx (NASDAQ:CDNA - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The company reported $0.34 EPS for the quarter, beating analysts' consensus estimates of $0.13 by $0.21. CareDx had a negative net margin of 5.65% and a negative return on equity of 6.50%. The business had revenue of $117.70 million for the quarter, compared to analysts' expectations of $102.29 million. During the same period last year, the business earned $0.09 earnings per share. The business's quarterly revenue was up 39.3% on a year-over-year basis. Sell-side analysts predict that CareDx, Inc. will post -0.14 earnings per share for the current year.

Insider Buying and Selling

In other CareDx news, CEO John Walter Hanna, Jr. sold 10,282 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $21.12, for a total transaction of $217,155.84. Following the transaction, the chief executive officer directly owned 676,475 shares in the company, valued at $14,287,152. This trade represents a 1.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Price T Rowe Associates Inc. MD grew its position in CareDx by 1.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 39,218 shares of the company's stock valued at $739,000 after acquiring an additional 711 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in CareDx by 4.8% during the second quarter. The Manufacturers Life Insurance Company now owns 27,742 shares of the company's stock valued at $542,000 after acquiring an additional 1,280 shares during the last quarter. Quarry LP bought a new position in CareDx during the fourth quarter valued at approximately $25,000. Allspring Global Investments Holdings LLC boosted its stake in shares of CareDx by 9.6% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 19,091 shares of the company's stock valued at $365,000 after purchasing an additional 1,675 shares during the period. Finally, FNY Investment Advisers LLC purchased a new stake in shares of CareDx during the third quarter valued at approximately $31,000.

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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