Peter Maag, a director at CareDx, Inc. (NASDAQ:CDNA), recently made notable transactions involving the company's stock. On November 26, Maag sold 5,000 shares of CareDx common stock at a price of $25.00 per share, totaling $125,000. This sale was executed as part of a pre-arranged trading plan under Rule 10b5-1, which Maag adopted on August 21, 2024. The transaction occurred as CareDx, now valued at $1.34 billion, has seen its stock surge over 150% in the past year, with analysts setting price targets between $28 and $40.
In a related transaction on the same day, Maag acquired 5,000 shares of CareDx common stock through the exercise of stock options at a price of $12.24 per share, amounting to $61,200. Following these transactions, Maag holds 330,024 shares of CareDx directly. According to InvestingPro, the company maintains strong liquidity with a current ratio of 4.1, indicating robust financial health.
These transactions highlight Maag's active management of his holdings in CareDx, a company specializing in medical laboratory services. Based on InvestingPro's Fair Value analysis, the stock currently appears slightly undervalued, with 11 additional ProTips available for subscribers seeking deeper insights into the company's prospects.
In other recent news, CareDx, Inc. reported a substantial growth in its third quarter earnings, with a 23% increase in revenue to $82.9 million. The company also recorded a positive adjusted EBITDA of $6.9 million, showing a significant improvement from the previous year. CareDx further raised its fiscal year 2024 revenue guidance to between $327 million and $331 million, indicating a 17% growth at the midpoint.
In addition, the company has outlined a three-year growth strategy aiming to reach $500 million in revenue by 2027, with a 20% adjusted EBITDA profitability. The Department of Justice and the Securities and Exchange Commission concluded investigations into CareDx with no findings of wrongdoing. Furthermore, a competitor dropped patent infringement claims against CareDx's AlloSure testing method.
These recent developments show CareDx's robust financial performance and positive growth outlook. The company also plans to invest in its commercial team and billing operations to support higher growth rates by 2027. However, it is important to note that potential delays in government programs may impact the dynamics of the kidney transplant market.
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