CareDx (NASDAQ:CDNA) Shares Up 6% - Still a Buy?

Key Points

• CareDx shares rose 6% to about $66.93, bringing its market capitalization to roughly $3.42 billion. The stock is trading well above its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: three analysts rate the stock a Buy and five rate it a Hold, producing an overall “Hold” consensus and an average price target of $54.00, below the current price.
• CareDx reported stronger-than-expected quarterly results, with EPS of $0.37 versus estimates of $0.23 and revenue of $131.95 million, up 52.2% year over year. Several major institutional investors also established new positions during the second quarter.

CareDx, Inc. (NASDAQ:CDNA - Get Free Report) shot up 6% during trading on Tuesday. The company traded as high as $66.60 and last traded at $66.9260. Approximately 596,875 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 935,254 shares. The stock had previously closed at $63.12.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. BTIG Research lifted their price target on shares of CareDx from $60.00 to $74.00 and gave the company a "buy" rating in a research report on Thursday, September 24th. Canaccord Genuity Group assumed coverage on shares of CareDx in a research note on Wednesday, September 2nd. They issued a "buy" rating and a $65.00 price target on the stock. Weiss Ratings upgraded shares of CareDx from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday. HC Wainwright reaffirmed a "neutral" rating and set a $46.00 price objective on shares of CareDx in a research report on Friday, July 31st. Finally, Craig Hallum upgraded shares of CareDx from a "hold" rating to a "buy" rating and set a $64.00 target price for the company in a report on Monday, August 3rd. Three analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $54.00.

CareDx Stock Performance

The company has a 50-day moving average price of $53.50 and a 200-day moving average price of $34.92. The firm has a market capitalization of $3.42 billion, a price-to-earnings ratio of 31.99 and a beta of 2.38.

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

Insider Activity at CareDx

In other CareDx news, Director George Bickerstaff, III sold 20,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $46.28, for a total value of $925,600.00. Following the transaction, the director directly owned 134,061 shares in the company, valued at $6,204,343.08. This represents a 12.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Christine Cournoyer sold 16,000 shares of the firm's 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 sale, the director directly owned 42,943 shares in the company, valued at approximately $2,015,744.42. The trade was 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. Corporate insiders own 2.40% of the company's stock.

Institutional Investors Weigh In On CareDx

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

About CareDx

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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