HC Wainwright Reaffirms Neutral Rating for CareDx (CDNA)

CareDx (NASDAQ:CDNA)‘s stock had its “neutral” rating reiterated by equities research analysts at HC Wainwright in a research note issued on Tuesday, Marketbeat Ratings reports. They currently have a $22.00 target price on the stock. HC Wainwright’s price target points to a potential downside of 14.93% from the company’s previous close.

The analysts wrote, “Our price target is derived from a market value of the firm at $790M, which includes a discounted cash flow analysis based asset value of $803M for pre- and post-transplant tests, using a 15% discount rate and 2% terminal growth rate, excluding $13M debt and assuming 36.5M shares outstanding at the end of 3Q19.””

Several other research firms have also recently issued reports on CDNA. Piper Jaffray Companies increased their price target on shares of CareDx to $42.00 in a report on Wednesday, September 5th. Zacks Investment Research raised shares of CareDx from a “sell” rating to a “hold” rating in a report on Monday, August 27th. BidaskClub cut shares of CareDx from a “strong-buy” rating to a “buy” rating in a report on Saturday, June 23rd. Finally, TheStreet cut shares of CareDx from a “c-” rating to a “d” rating in a report on Monday, June 11th. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating, three have given a buy rating and two have given a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus target price of $18.90.

Shares of NASDAQ:CDNA opened at $25.86 on Tuesday. CareDx has a one year low of $2.81 and a one year high of $27.55. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.16 and a quick ratio of 1.83. The stock has a market capitalization of $940.27 million, a PE ratio of -33.58 and a beta of 0.94.

CareDx (NASDAQ:CDNA) last announced its earnings results on Thursday, August 9th. The company reported ($0.04) EPS for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.03. The business had revenue of $17.82 million during the quarter, compared to analysts’ expectations of $15.30 million. CareDx had a negative net margin of 121.92% and a negative return on equity of 108.99%. sell-side analysts predict that CareDx will post -0.94 EPS for the current year.

In other CareDx news, COO Mitchell J. Nelles sold 39,649 shares of the stock in a transaction dated Monday, July 2nd. The shares were sold at an average price of $12.48, for a total value of $494,819.52. Following the completion of the transaction, the chief operating officer now directly owns 89,639 shares of the company’s stock, valued at $1,118,694.72. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Michael Brian Bell sold 16,355 shares of the stock in a transaction dated Thursday, September 13th. The shares were sold at an average price of $25.06, for a total transaction of $409,856.30. Following the completion of the transaction, the chief financial officer now directly owns 52,238 shares of the company’s stock, valued at $1,309,084.28. The disclosure for this sale can be found here. Insiders have sold 92,962 shares of company stock valued at $1,594,372 over the last three months. 3.40% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently modified their holdings of CDNA. Cambridge Investment Research Advisors Inc. increased its holdings in CareDx by 26.2% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 81,330 shares of the company’s stock valued at $648,000 after buying an additional 16,904 shares in the last quarter. BlackRock Inc. increased its holdings in CareDx by 62.0% in the first quarter. BlackRock Inc. now owns 55,864 shares of the company’s stock valued at $445,000 after buying an additional 21,384 shares in the last quarter. Spark Investment Management LLC increased its holdings in CareDx by 65.1% in the first quarter. Spark Investment Management LLC now owns 221,900 shares of the company’s stock valued at $1,768,000 after buying an additional 87,492 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in CareDx by 37.2% in the first quarter. JPMorgan Chase & Co. now owns 43,851 shares of the company’s stock valued at $349,000 after buying an additional 11,879 shares in the last quarter. Finally, Tibra Equities Europe Ltd purchased a new position in CareDx in the first quarter valued at about $387,000. 72.84% of the stock is owned by institutional investors.

CareDx Company Profile

CareDx, Inc, a transplant diagnostics company, together with its subsidiaries, engages in the discovery, development, and commercialization of diagnostic surveillance solutions for transplant patients worldwide. It operates through two segments, Post-Transplant Diagnostics and Pre-Transplant Diagnostics.

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