Wall Street Zen Downgrades CareDx (NASDAQ:CDNA) to Sell

Key Points

• Wall Street Zen downgraded CareDx from a "hold" rating to a "sell" rating, indicating a negative outlook for the stock.
• The current consensus rating for CareDx is "Hold", with a consensus price target of $29.33, despite a recent drop in stock price.
• Insider activity shows significant share sales, with Director William A. Hagstrom selling 30,000 shares for $523,500, indicating a 35.72% decrease in his ownership.

CareDx (NASDAQ:CDNA - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Other equities research analysts also recently issued reports about the company. Stephens reaffirmed an "overweight" rating and set a $40.00 price objective on shares of CareDx in a report on Monday, May 5th. HC Wainwright reaffirmed a "neutral" rating and set a $25.00 price objective on shares of CareDx in a report on Monday, May 5th. The Goldman Sachs Group decreased their price objective on CareDx from $34.00 to $26.00 and set a "buy" rating on the stock in a report on Thursday, April 17th. Finally, Craig Hallum decreased their price objective on CareDx from $40.00 to $26.00 and set a "buy" rating on the stock in a report on Friday, July 18th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $29.33.

CareDx Stock Down 0.5%

CDNA stock opened at $12.22 on Friday. CareDx has a twelve month low of $10.96 and a twelve month high of $34.84. The company has a market cap of $680.41 million, a PE ratio of 10.63 and a beta of 2.22. The business's 50-day simple moving average is $17.41 and its 200 day simple moving average is $18.83.

CareDx (NASDAQ:CDNA - Get Free Report) last released its earnings results on Wednesday, April 30th. The company reported $0.09 earnings per share for the quarter, topping analysts' consensus estimates of $0.06 by $0.03. CareDx had a return on equity of 21.16% and a net margin of 19.79%. The business had revenue of $84.69 million for the quarter, compared to the consensus estimate of $84.56 million. During the same period last year, the business earned ($0.03) earnings per share. The firm's revenue for the quarter was up 17.6% compared to the same quarter last year. On average, equities research analysts anticipate that CareDx will post -0.9 EPS for the current year.

Insider Activity

In other news, Director William A. Hagstrom sold 30,000 shares of CareDx stock in a transaction that occurred on Wednesday, May 28th. The shares were sold at an average price of $17.45, for a total value of $523,500.00. Following the completion of the transaction, the director owned 53,979 shares in the company, valued at approximately $941,933.55. The trade was a 35.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Hannah Valantine sold 10,570 shares of CareDx stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $19.16, for a total transaction of $202,521.20. Following the completion of the transaction, the director owned 38,994 shares of the company's stock, valued at $747,125.04. This trade represents a 21.33% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 125,797 shares of company stock worth $2,191,084. 4.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of CDNA. Janney Montgomery Scott LLC bought a new position in CareDx in the 1st quarter worth approximately $375,000. KLP Kapitalforvaltning AS bought a new position in CareDx in the 4th quarter worth approximately $208,000. Nuveen Asset Management LLC raised its position in CareDx by 15.5% in the 4th quarter. Nuveen Asset Management LLC now owns 448,113 shares of the company's stock worth $9,594,000 after purchasing an additional 60,050 shares during the last quarter. Millennium Management LLC raised its position in CareDx by 37.8% in the 4th quarter. Millennium Management LLC now owns 621,307 shares of the company's stock worth $13,302,000 after purchasing an additional 170,568 shares during the last quarter. Finally, Vanguard Group Inc. raised its position in CareDx by 7.1% in the 4th quarter. Vanguard Group Inc. now owns 4,859,732 shares of the company's stock worth $104,047,000 after purchasing an additional 323,554 shares during the last quarter.

CareDx Company Profile

CareDx, Inc engages in the discovery, development, and commercialization of diagnostic solutions for transplant patients and caregivers in the United States and internationally. It also provides AlloSure Kidney, a donor-derived cell-free DNA (dd-cfDNA) solution for kidney transplant patients; AlloMap Heart, a gene expression solution for heart transplant patients; AlloSure Heart, a dd-cfDNA solution for heart transplant patients; and AlloSure Lung, a dd-cfDNA solution for lung transplant patients.

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