CareDx Inc [NASDAQ:CDNA]’s prices rallied on Thursday.
Other data for the company is as follows:
- Stochastic %K of 91.85
- Weighted Alpha of 98
Day traders should note that the company’s next earning date is 11/05/2020. The company has price per sales of 16.38 and price per cash flow of 158.27.
The Price is right
Holding a Market Cap of $2.45 billion, CareDx Inc has seen a trading range over the last year of $13.04-$44.58.
For the last five days, CDNA is up from its last closing price. The average shares trading hands each day is 522.78K.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for CDNA. When we apply the Elder Force Index to CareDx Inc, we are seeing an Elder Force Indicator number of 19866568.32.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. CDNA is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 802.06.
In the last quarter, CDNA made a profit of 26.78 million. CareDx Inc also saw quarter revenue growth year over year of 65.95%.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 44.33 compared to the 50-day moving average of 11.45%. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. CDNA currently holds a 9-day RSI of 91.26%, while 100-day RSI stands at 60.36%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. CDNA’s 9-day MACD is 4.43 and the company’s 100-day MACD stands at 11.90.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 2.49% by insiders and 97.01% by institutions. Regarding institutional holdings, Fred Alger Management, LLC owns 10.39%, while the second top holder, Blackrock Inc., currently owns 6.70%.
Over the last six months, insiders have sold 10,000 with the most recent transaction from Maag Peter, Chief Executive Officer, with a sell at price 42.11 per share.
Conclusion
Overall, the recommended rating for CDNA is Strong Buy. Currently, the company has 4 analysts watching the stock, and the average quarterly earnings estimate is -0.07. Quarterly revenue estimates are averaging 53.01M with the high estimate reaching 53.04M and the low at 53M.
To review, the current 1-year target estimate is sitting at 44.50, while the current price 50.53. Based on this, we expect some pullback on the stock over time given our above analysis.
