CareDx (NASDAQ:CDNA) Shares Gap Down – Here’s Why

CareDx, Inc. (NASDAQ:CDNA)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $40.34, but opened at $37.79. CareDx shares last traded at $39.9720, with a volume of 460,089 shares.

Analysts Set New Price Targets

A number of analysts have issued reports on CDNA shares. Weiss Ratings downgraded shares of CareDx from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday. Wall Street Zen raised shares of CareDx from a “buy” rating to a “strong-buy” rating in a report on Sunday, May 3rd. Craig Hallum reiterated a “hold” rating and issued a $35.00 price target on shares of CareDx in a research report on Thursday. Finally, BTIG Research lifted their price target on shares of CareDx from $28.00 to $45.00 and gave the company a “buy” rating in a research report on Thursday. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $33.67.

CareDx Price Performance

The company has a market cap of $2.05 billion, a P/E ratio of -248.31 and a beta of 2.43. The stock has a 50-day moving average of $25.21 and a 200 day moving average of $21.27.

CareDx (NASDAQ:CDNA) last posted its quarterly earnings data on Tuesday, April 28th. The company reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.23. The business had revenue of $117.70 million during the quarter, compared to analysts’ expectations of $102.03 million. CareDx had a negative net margin of 2.01% and a negative return on equity of 2.65%. CareDx’s revenue was up 39.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.09 earnings per share. Sell-side analysts predict that CareDx, Inc. will post 0.22 EPS for the current year.

Insider Activity at CareDx

In related news, CEO John Walter Hanna, Jr. sold 39,900 shares of the stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $29.24, for a total transaction of $1,166,676.00. Following the sale, the chief executive officer owned 661,959 shares in the company, valued at approximately $19,355,681.16. This trade represents a 5.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Hannah Valantine sold 12,103 shares of CareDx stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $23.11, for a total transaction of $279,700.33. Following the completion of the transaction, the director directly owned 36,686 shares in the company, valued at $847,813.46. This trade represents a 24.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 78,936 shares of company stock valued at $2,093,708 over the last 90 days. Corporate insiders own 2.40% of the company’s stock.

Institutional Investors Weigh In On CareDx

Several institutional investors and hedge funds have recently added to or reduced their stakes in CDNA. Quarry LP bought a new position in shares of CareDx in the 4th quarter valued at $25,000. FNY Investment Advisers LLC acquired a new position in shares of CareDx during the 3rd quarter worth $31,000. Meeder Asset Management Inc. bought a new stake in shares of CareDx during the 4th quarter worth $79,000. Quantbot Technologies LP bought a new stake in shares of CareDx during the 3rd quarter worth $89,000. Finally, CWM LLC boosted its stake in CareDx by 119.1% in the fourth quarter. CWM LLC now owns 7,407 shares of the company’s stock valued at $140,000 after buying an additional 4,026 shares in the last quarter.

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.