CareDx (NASDAQ:CDNA) Shares Down 6.2% - Time to Sell?

Key Points

• CareDx shares fell 6.2% to about $65.53 in midday trading, despite remaining above both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: three analysts rate the stock a Buy and five rate it a Hold, producing an overall “Hold” consensus and a $54 average price target—below the current share price.
• The company reported stronger-than-expected quarterly results, with $0.37 EPS and $131.95 million in revenue, up 52.2% year over year; however, two directors recently sold shares under a pre-arranged trading plan.

CareDx, Inc. (NASDAQ:CDNA - Get Free Report) dropped 6.2% on Tuesday. The company traded as low as $64.73 and last traded at $65.5290. Approximately 899,250 shares traded hands during mid-day trading, a decline of 2% from the average daily volume of 921,099 shares. The stock had previously closed at $69.85.

Analyst Ratings Changes

A number of equities analysts have commented on CDNA shares. Craig Hallum raised CareDx from a "hold" rating to a "buy" rating and set a $64.00 price target on the stock in a research note on Monday, August 3rd. BTIG Research lifted their target price on shares of CareDx from $60.00 to $74.00 and gave the stock a "buy" rating in a research note on Thursday, September 24th. William Blair raised shares of CareDx to a "hold" rating in a research report on Thursday, July 16th. Weiss Ratings raised shares of CareDx from a "sell (d+)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Finally, HC Wainwright reissued a "neutral" rating and issued a $46.00 target price on shares of CareDx in a research note on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, CareDx presently has an average rating of "Hold" and a consensus target price of $54.00.

CareDx Stock Down 6.6%

The company has a market cap of $3.38 billion, a PE ratio of 31.57 and a beta of 2.38. The firm's 50-day moving average is $51.20 and its 200-day moving average is $33.31.

CareDx (NASDAQ:CDNA - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.14. CareDx had a return on equity of 2.87% and a net margin of 24.23%.The business had revenue of $131.95 million for the quarter, compared to analysts' expectations of $114.05 million. During the same period in the previous year, the firm posted ($0.16) EPS. The business's revenue was up 52.2% on a year-over-year basis. As a group, equities research analysts anticipate that CareDx, Inc. will post 0.47 EPS for the current fiscal year.

Insider Transactions at CareDx

In related news, Director George Bickerstaff, III sold 20,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $46.28, for a total transaction of $925,600.00. Following the sale, the director owned 134,061 shares of the company's stock, valued at $6,204,343.08. The trade was a 12.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Christine Cournoyer sold 16,000 shares of the company's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $46.94, for a total transaction of $751,040.00. Following the completion of the sale, the director owned 42,943 shares in the company, valued at approximately $2,015,744.42. This trade represents a 27.14% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.40% of the stock is owned by corporate insiders.

Institutional Trading of CareDx

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Nykredit A S bought a new stake in shares of CareDx in the 2nd quarter worth about $25,000. Integrated Wealth Concepts LLC bought a new stake in CareDx in the second quarter worth about $29,000. Allspring Global Investments Holdings LLC lifted its stake in CareDx by 11.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 21,242 shares of the company's stock worth $380,000 after purchasing an additional 2,151 shares during the last quarter. SG Americas Securities LLC boosted its position in shares of CareDx by 8.3% during the first quarter. SG Americas Securities LLC now owns 29,949 shares of the company's stock valued at $520,000 after buying an additional 2,292 shares during the period. Finally, Allworth Financial LP bought a new position in shares of CareDx during the second quarter valued at approximately $72,000.

CareDx Company Profile

CareDx, Inc NASDAQ: CDNA is a precision-medicine company focused on improving the care of organ-transplant patients. The company develops diagnostic tests, digital tools and services designed to help clinicians monitor transplant recipients, assess the risk of rejection and support long-term graft management.

CareDx's product portfolio includes AlloMap, a gene-expression blood test used in heart-transplant surveillance, and AlloSure, a donor-derived cell-free DNA test designed to help detect potential organ injury or rejection.

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