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BRISBANE, Calif. - CareDx, Inc. (NASDAQ: CDNA), a precision medicine company specializing in solutions for transplant patients, has completed a $50 million repurchase of its common stock, approximately 5% of outstanding shares. With a market capitalization of approximately $975 million and a P/E ratio of 15.06, InvestingPro analysis suggests the stock is currently undervalued. This move follows the company’s reported growth, with a 18% increase in first-quarter revenue year-over-year, totaling $84.7 million, contributing to an impressive 25.92% revenue growth over the last twelve months.
The company, which concluded its seventh consecutive quarter of testing services volume growth, ended the first quarter with a strong financial position of $231 million in cash, cash equivalents, and marketable securities, and no debt. According to InvestingPro data, CareDx maintains a healthy current ratio of 4.11, indicating strong liquidity. John W. Hanna, President and CEO of CareDx, expressed confidence in the company’s trajectory towards achieving a revenue target of $500 million and 20% adjusted EBITA by 2027.
In line with these developments, CareDx’s Board of Directors has authorized a new share repurchase program of up to $50 million over the next 24 months. The repurchases may occur via open market purchases, privately negotiated transactions, or other methods as per legal and regulatory guidelines. With a beta of 2.18, investors should note that the stock shows higher volatility than the broader market. Factors such as stock price, market conditions, and corporate considerations will influence the timing and volume of shares repurchased. Get deeper insights into CareDx’s valuation and growth potential with InvestingPro’s comprehensive research report, part of its coverage of over 1,400 US stocks.
CareDx, headquartered in Brisbane, California, leads in providing genomics-based information and healthcare solutions for transplant patients. The company offers a range of testing services, products, and digital healthcare solutions aimed at enhancing the pre- and post-transplant process for patients and caregivers.
This announcement contains forward-looking statements regarding the anticipated stock repurchases and their expected impact on the company’s financial health. These statements are based on current expectations and are subject to economic, market, and other risks that could potentially alter the projected outcomes.
The information in this article is based on a press release statement from CareDx, Inc.
In other recent news, CareDx Inc. reported a notable earnings beat for the first quarter of 2025, with earnings per share reaching $0.09, surpassing the anticipated loss of $0.19. The company’s revenue for this period rose by 18% year-over-year to $84.7 million, driven by a 15% increase in testing services revenue, which totaled $61.9 million. Despite these positive financial results, CareDx’s stock experienced a decline, which analysts suggest may be influenced by broader market conditions and specific company challenges. In related developments, BTIG analyst Sung Ji Nam adjusted the price target for CareDx shares to $30, down from $35, while maintaining a Buy rating, indicating continued confidence in the company’s trajectory. The analyst pointed out CareDx’s solid fundamentals, including a 12% growth in testing volumes, and described the stock as undervalued. Additionally, CareDx launched new transplant testing products and expanded its market reach, which could potentially contribute to future growth. The company reiterated its revenue guidance for 2025, projecting a range of $365 million to $375 million, with a long-term goal of reaching $500 million by 2027.
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