CareDx (NASDAQ:CDNA) Trading Up 5.8% - Here's Why

Key Points

• CareDx shares rose 5.8% to about $57.48, although trading volume was 89% below the average session volume.
• Analyst sentiment improved, with BTIG raising its price target to $74 and several firms issuing buy or strong-buy ratings. The stock carries a consensus rating of “Moderate Buy” and an average target of $54.
• CareDx exceeded quarterly expectations, reporting EPS of $0.37 versus $0.23 expected and revenue of $131.95 million, up 52.2% year over year. Several institutional investors also established new positions during the second quarter.

CareDx, Inc. (NASDAQ:CDNA - Get Free Report)'s share price rose 5.8% during trading on Thursday . The stock traded as high as $56.57 and last traded at $57.4760. Approximately 98,993 shares were traded during trading, a decline of 89% from the average session volume of 882,494 shares. The stock had previously closed at $54.31.

Analysts Set New Price Targets

A number of brokerages have weighed in on CDNA. Canaccord Genuity Group assumed coverage on CareDx in a research report on Wednesday, September 2nd. They issued a "buy" rating and a $65.00 price target for the company. BTIG Research raised their price objective on CareDx from $60.00 to $74.00 and gave the company a "buy" rating in a research note on Thursday. Craig Hallum upgraded 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. Zacks Research raised CareDx from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 6th. Finally, William Blair upgraded CareDx to a "hold" rating in a report on Thursday, July 16th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $54.00.

CareDx Stock Performance

The stock has a market cap of $3.06 billion, a price-to-earnings ratio of 28.62 and a beta of 2.43. The stock's 50-day simple moving average is $46.88 and its two-hundred day simple moving average is $30.61.

CareDx (NASDAQ:CDNA - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.37 earnings per share (EPS) 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 company had revenue of $131.95 million for the quarter, compared to the consensus estimate of $114.05 million. During the same period last year, the business posted ($0.16) earnings per share. The firm's revenue was up 52.2% compared to the same quarter last year. As a group, research analysts predict that CareDx, Inc. will post 0.47 earnings per share for the current year.

Insider Buying and Selling 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 value of $751,040.00. Following the completion of the sale, the director directly owned 42,943 shares of the company's stock, valued at approximately $2,015,744.42. This represents a 27.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John Walter Hanna, Jr. sold 39,900 shares of the firm's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $29.24, for a total transaction of $1,166,676.00. Following the completion of the sale, the chief executive officer owned 661,959 shares in the company, valued at approximately $19,355,681.16. The trade was a 5.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 76,000 shares of company stock valued at $2,846,216 in the last 90 days. 2.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On CareDx

Several large investors have recently bought and sold shares of the stock. Canada Pension Plan Investment Board bought a new position in shares of CareDx during the 2nd quarter worth about $1,505,000. Man Group plc acquired a new stake in CareDx during the second quarter worth about $3,618,000. Bamco Inc. NY acquired a new stake in CareDx during the second quarter worth about $55,214,000. Virtus Advisers LLC bought a new position in CareDx during the second quarter valued at about $1,198,000. Finally, Corient Private Wealth LP bought a new position in CareDx during the second quarter valued at about $654,000.

About CareDx

CareDx, Inc is a precision medicine company focused on improving outcomes for transplant patients. The company develops and commercializes diagnostic tests, monitoring solutions and digital health services designed to help clinicians assess organ health, identify potential rejection and support the long-term management of transplant recipients.

Its portfolio includes AlloMap, a gene-expression blood test used in heart-transplant monitoring, and AlloSure, a donor-derived cell-free DNA test used to assess kidney-transplant health.

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