BRISBANE, CA—CareDx, Inc. (NASDAQ:CDNA) recently reported a stock transaction involving Jeffrey Adam Novack, the company's Secretary and General Counsel. According to a Form 4 filing with the Securities and Exchange Commission, Novack sold 1,917 shares of common stock on December 4, 2024. The shares were sold at a price of $26.00 each, totaling $49,842. The transaction comes as CareDx shares have shown remarkable strength, with the stock up over 150% in the past year, according to InvestingPro data.
Following this transaction, Novack holds 110,237 shares of CareDx. The sale was conducted under a Rule 10b5-1 trading plan, which was adopted by Novack on August 19, 2024. Rule 10b5-1 plans allow insiders to set up a predetermined schedule for selling company stock to avoid potential conflicts of interest. With analysts setting price targets between $28 and $40, InvestingPro analysis suggests the stock may be currently undervalued, with 8 additional key insights available to subscribers.
CareDx, headquartered in Brisbane, California, is a company specializing in medical laboratory services. The company, currently valued at $1.34 billion, maintains a strong financial position and receives a "GOOD" overall rating from InvestingPro's comprehensive analysis framework.
In other recent news, CareDx, Inc. reported a notable upswing in its third-quarter financial performance, including a 23% year-over-year revenue increase to $82.9 million. The company also posted a positive adjusted EBITDA of $6.9 million, exceeding expectations. Highlighting its growth trajectory, CareDx revised its full-year 2024 revenue guidance upwards, now anticipating a 17% growth at the midpoint.
The company also disclosed a three-year growth strategy aiming to achieve $500 million in revenue by 2027, with a target of 20% adjusted EBITDA profitability. Among other recent developments, the Department of Justice and the Securities and Exchange Commission concluded their investigations into CareDx, finding no wrongdoing. Moreover, a competitor withdrew patent infringement claims against CareDx's AlloSure testing method.
Looking ahead, CareDx projects a 17% year-over-year revenue growth for fiscal year 2024, potentially adjusting to 12-13% when considering one-time revenues. The company plans to bolster its commercial team and billing operations to support higher growth rates by 2027. Amid these recent developments, CareDx remains focused on its commitment to growth and financial performance.
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