CareDx (NASDAQ:CDNA) Shares Gap Down on Disappointing Earnings

CareDx, Inc. (NASDAQ:CDNA) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $19.25, but opened at $17.08. CareDx shares last traded at $17.6310, with a volume of 325,343 shares trading hands.

The company reported $0.12 earnings per share for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.12). The business had revenue of $108.39 million for the quarter, compared to the consensus estimate of $102.76 million. CareDx had a negative net margin of 5.65% and a negative return on equity of 6.33%. CareDx’s quarterly revenue was up 25.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.18 EPS.

Key CareDx News

Here are the key news stories impacting CareDx this week:

• Positive Sentiment: Revenue beat and strong top‑line growth — CareDx reported Q4 revenue of $108.4M, up ~25% year‑over‑year and above consensus, highlighting continued demand for its transplant diagnostics and services. Press ReleaseView Press Release
• Positive Sentiment: FY‑2026 revenue guidance raised/slightly ahead of Street — management set revenue guidance of $420M–$444M versus a consensus near $417.5M, which provides upside to topline expectations for the year (EPS guidance detail was unclear). Zacks guidance article
• Positive Sentiment: Analyst target lifted — Wells Fargo bumped its price target from $18 to $21 and kept an “equal weight” rating, signaling some analyst confidence in the recovery potential. Benzinga report
• Neutral Sentiment: Internal CFO change — COO Keith Kennedy will also assume CFO responsibilities, a management consolidation that suggests continuity but leaves questions about long‑term finance leadership succession. Business Wire release
• Neutral Sentiment: Short‑interest report appears unreliable — published short‑interest data for late Feb shows zeros/NaN in this dataset and does not indicate a meaningful change in short positioning. Treat the short‑interest signal as inconclusive today.
• Negative Sentiment: EPS miss and investor disappointment — CareDx reported EPS of $0.12 vs. consensus ~$0.24, a material miss that is the primary driver of downward pressure as it raises concerns about near‑term profitability despite revenue strength. Zacks earnings miss

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on CDNA shares. Weiss Ratings restated a “hold (c-)” rating on shares of CareDx in a research report on Monday, December 29th. Zacks Research upgraded CareDx from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 18th. Craig Hallum downgraded shares of CareDx from a “buy” rating to a “hold” rating and set a $26.00 price target for the company. in a report on Tuesday, January 6th. Wall Street Zen lowered shares of CareDx from a “buy” rating to a “hold” rating in a research report on Saturday, February 7th. Finally, BTIG Research reaffirmed a “buy” rating and issued a $26.00 price objective on shares of CareDx in a report on Wednesday. Three equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, CareDx presently has an average rating of “Hold” and a consensus price target of $27.33.

Insider Activity

In other news, CEO John Walter Hanna, Jr. sold 19,280 shares of the stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $21.16, for a total value of $407,964.80. Following the completion of the transaction, the chief executive officer owned 597,405 shares of the company’s stock, valued at approximately $12,641,089.80. This represents a 3.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders sold a total of 29,636 shares of company stock valued at $625,949 over the last ninety days. Corporate insiders own 4.40% of the company’s stock.

Hedge Funds Weigh In On CareDx

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD lifted its stake in CareDx by 1.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 39,218 shares of the company’s stock valued at $739,000 after acquiring an additional 711 shares during the last quarter. Cetera Trust Company N.A raised its holdings in shares of CareDx by 11.2% during the 2nd quarter. Cetera Trust Company N.A now owns 12,195 shares of the company’s stock valued at $238,000 after purchasing an additional 1,225 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH lifted its stake in shares of CareDx by 5.9% in the 2nd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 22,509 shares of the company’s stock valued at $440,000 after purchasing an additional 1,264 shares during the last quarter. The Manufacturers Life Insurance Company boosted its holdings in CareDx by 4.8% in the second quarter. The Manufacturers Life Insurance Company now owns 27,742 shares of the company’s stock worth $542,000 after purchasing an additional 1,280 shares in the last quarter. Finally, Police & Firemen s Retirement System of New Jersey increased its position in CareDx by 12.2% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 11,885 shares of the company’s stock worth $232,000 after buying an additional 1,293 shares during the last quarter.

CareDx Stock Down 4.1%

The company’s 50-day simple moving average is $19.66 and its 200 day simple moving average is $16.75. The stock has a market capitalization of $949.40 million, a price-to-earnings ratio of -46.15 and a beta of 2.51.

About CareDx

CareDx, Inc (NASDAQ: CDNA) is a precision diagnostics company focused on the care of transplant patients. The firm develops and commercializes non‐invasive tests designed to detect organ transplant rejection and infection risk, helping physicians make informed management decisions throughout the post‐transplant journey.

The company’s core product portfolio includes AlloMap®, a gene expression profiling test for heart transplant recipients, and AlloSure®, a donor‐derived cell‐free DNA assay used primarily in kidney transplant monitoring.