CareDx (NASDAQ:CDNA) Shares Gap Up After Strong Earnings

Key Points

• CareDx shares surged after a strong earnings report, opening at $80.62 versus a prior close of $71.52 and later trading near $88.37. Quarterly EPS was $0.70, beating estimates by $0.45, while revenue of $139.36 million exceeded forecasts and rose 39.3% year over year.
• Analyst sentiment remains mixed but improved, with BTIG raising its price target to $92 and maintaining a buy rating. Despite three buy ratings, five analysts rate the stock hold, producing an average rating of “Hold” and a $64.40 average price target.
• Several major institutional investors, including BlackRock and Bamco, initiated sizable CareDx positions in the second quarter, while two directors sold shares under pre-arranged trading plans.

CareDx, Inc. (NASDAQ:CDNA - Get Free Report)'s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $71.52, but opened at $80.62. CareDx shares last traded at $88.3730, with a volume of 653,182 shares trading hands.

The company reported $0.70 earnings per share for the quarter, beating analysts' consensus estimates of $0.25 by $0.45. The business had revenue of $139.36 million during the quarter, compared to analyst estimates of $121.96 million. CareDx had a net margin of 24.23% and a return on equity of 2.87%. CareDx's revenue was up 39.3% compared to the same quarter last year. During the same period last year, the business earned $0.03 EPS.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on CDNA shares. BTIG Research raised their target price on shares of CareDx from $81.00 to $92.00 and gave the stock a "buy" rating in a report on Friday. William Blair raised shares of CareDx to a "hold" rating in a report on Thursday, July 16th. Weiss Ratings upgraded shares of CareDx from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Craig Hallum upgraded CareDx from a "hold" rating to a "buy" rating and set a $64.00 price target on the stock in a report on Monday, August 3rd. Finally, Zacks Research lowered CareDx from a "strong-buy" rating to a "hold" rating in a research report on Friday, October 2nd. Three analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $64.40.

Insider Transactions at CareDx

In other news, Director Christine Cournoyer sold 16,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $46.94, for a total transaction of $751,040.00. Following the transaction, the director owned 42,943 shares in the company, valued at $2,015,744.42. This trade represents a 27.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director George Bickerstaff, III sold 20,000 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $46.28, for a total transaction of $925,600.00. Following the completion of the sale, the director directly owned 134,061 shares of the company's stock, valued at approximately $6,204,343.08. The trade was a 12.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of CDNA. BlackRock Inc. acquired a new stake in shares of CareDx in the second quarter valued at approximately $137,219,000. Bamco Inc. NY purchased a new stake in CareDx in the 2nd quarter valued at $55,214,000. Bank of America Corp DE acquired a new stake in shares of CareDx in the 2nd quarter worth $16,297,000. Palo Alto Investors LP acquired a new stake in shares of CareDx in the 2nd quarter worth $15,158,295. Finally, Jupiter Topco LLC purchased a new position in shares of CareDx during the 2nd quarter worth $9,673,000.

CareDx Stock Performance

The firm's 50-day moving average price is $59.12 and its two-hundred day moving average price is $33.30. The stock has a market cap of $4.50 billion, a price-to-earnings ratio of 42.03 and a beta of 2.38.

About CareDx

CareDx, Inc is a healthcare diagnostics company focused on improving the care of organ-transplant patients. The company develops and commercializes noninvasive tests and digital tools intended to help physicians assess transplant-organ health, identify potential rejection, and support long-term patient management.

Its offerings include AlloSure donor-derived cell-free DNA tests for monitoring transplant recipients, AlloMap gene-expression testing for heart-transplant patients, and HeartCare, which combines AlloMap and AlloSure results.

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