Why CareDx, Inc (CDNA) Stock is Down Almost -4.84% Today

What just happened? CareDx, Inc (NASDAQ:CDNA) stock value has plummeted by nearly -4.84% or (-1.94 points) to $38.14 from its previous close of $40.08. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 219003 contracts so far this session. CDNA shares had a relatively better volume day versus average trading capacity of 779.11 thousand shares, but with a 38.54 million float and a 10.44% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CDNA stock indicates that the average analyst price target is $43.4 per share. This means the stock has a potential increase of 13.79% from where the CDNA share price has been trading recently which is between $39.13 and $41.27. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $38.

The shorts are climbing into CareDx, Inc (CDNA) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a rise in short interest in CDNA shares. While short interest still represents only 7.04% of CDNA’s float, the number of shares shorted have risen by 380482. The number of shares shorted advanced to 3093028 shares, up from 2712546 shares during the preceding fortnight. With average daily trading volumes at 738722 shares, days to cover decreased to about 4.187281 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “CareDx Applauds White House Efforts to Reform Americas Kidney Health System” and dated July 11, 2019.

During the recent trading session for CareDx, Inc (NASDAQ:CDNA), the company witnessed their stock rise $3 over a week and surge $0.41 from the price 20 days ago. When compared to their established 52-week high of $41.27, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 11/07/19. The recent low of $11.85 stood for a -7.58% since 07/16/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.87 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for CareDx, Inc, the two-week RSI stands at 55.55. This figure suggests that CDNA stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current CDNA readings is similarly very revealing as it has a stochastic reading of 74.67% at this stage. This figure means that CDNA share price today is being oversold.

Technical chart claims that CareDx, Inc (CDNA) would settle between $41.19/share to $42.3/share level. However, if the stock price goes below the $39.05 mark, then the market for CareDx, Inc becomes much weaker. If that happens, the stock price might even plunge as low as $38.02 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 2.08. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at H.C. Wainwright raised their recommendation on shares of CDNA from Neutral to Buy in their opinion released on May 09. Jefferies, analysts launched coverage of CareDx, Inc (NASDAQ:CDNA) stock with a Buy recommendation, according to their flash note issued to investors on February 15. Analysts at Raymond James, made their first call for the equity with a Strong Buy recommendation, according to a research note that dated back to October 23.

CDNA equity has an average rating of 1.6, with the figure leaning towards a bullish end. 5 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 5 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 5 analysts rated CareDx, Inc (NASDAQ:CDNA) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, CDNA stock price is currently trading at 68.51X forward 12-month Consensus EPS estimates, and its P/S ratio is 18.81 while for the average stock in the same group, the multiple is 42.28.

CareDx, Inc (CDNA)’s current-quarter revenues are projected to climb by nearly 56.89% to hit $27.96 million, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 50.49% from $76.57 million to a noteworthy $115230. At the other end of the current quarter income statement, CareDx, Inc is expected to see its adjusted earnings surge by roughly 100% to hit $0 per share. For the fiscal year, CDNA’s earnings are projected to climb by roughly 160% to hit $0.09 per share.