CareDx Insider Sale: A Modest Adjustment

by

John Hanna, the chap who runs CareDx (CDNA 0.14%), recently parted ways with a portion of his company stock – 19,480 shares, to be precise. That translates to roughly $412,200, which, let’s face it, is a sum that could buy a very impressive collection of garden gnomes. Or, you know, a modest down payment on a small island. The transaction, documented in an SEC filing, occurred over a couple of days in late January. It’s the sort of thing that makes analysts (like myself, naturally) furrow their brows and reach for the spreadsheets.

A Closer Look at the Numbers

Metric Value
Shares Sold (Direct) 19,480
Transaction Value ~$412,200
Post-Transaction Shares (Direct) 597,405
Post-Transaction Value (Direct Ownership) ~$12,557,500

Now, a sale of this size isn’t necessarily cause for alarm. It was, in fact, the largest of two recent sales by Mr. Hanna, exceeding a prior transaction of 10,156 shares. The average sale size for insiders has been around 14,818 shares, so it’s a bit above that, but not wildly so. It reduced his direct holdings by a modest 3.16%, leaving him still with a substantial stake in the company. It’s like selling off a few extra bricks from a very large house – the house remains standing, and the owner is still very much in residence.

Interestingly, this wasn’t a complex transaction involving offshore accounts or complicated derivatives. All shares were held and sold directly, which, in the world of high finance, is almost…refreshingly straightforward. It’s good to know that sometimes things are exactly as they appear.

Company Snapshot

Metric Value
Revenue (TTM) $358 million
Net Income (TTM) $70.45 million
Employees 644
1-year price change -9.36%

CareDx, for those unfamiliar, is a company focused on diagnostic solutions for transplant patients. They offer a range of tests and software, essentially helping doctors keep a close eye on organs after they’ve been transplanted. It’s a niche market, certainly, but a vital one. They have 644 employees, which, when you think about it, is a surprisingly small number for a company dealing with something as complex as organ transplantation. It suggests they’re doing things efficiently, or perhaps relying heavily on robots. One can only speculate.

The company has also recently partnered with 10x Genomics, a name that sounds like something out of a science fiction novel, to study organ rejection. It’s a collaboration that could lead to some exciting developments in the field, and potentially improve the lives of countless transplant patients. It’s a reminder that even in the world of finance, there’s often a genuine human story behind the numbers.

As for the stock itself, it’s down around 9.36% over the last year, and a rather alarming 75.4% since January 2021. However, recent financial results have been promising, with revenue up 25% year-over-year in the fourth quarter. They’ve also been repurchasing shares, which is generally a good sign. It suggests they believe the stock is undervalued, or perhaps they just have a lot of cash lying around. Either way, it’s encouraging.

The sale, it turns out, was made under a pre-arranged Rule 10b5-1 trading plan. These plans allow insiders to sell shares at predetermined times, avoiding the appearance of insider trading. It’s a bit like setting your alarm clock – you’re not reacting to the moment, you’re simply following a plan. Insiders sell for all sorts of reasons – taxes, liquidity, or simply a desire to diversify their holdings. Trying to read too much into it is often a fool’s errand.

Read More

2026-01-30 18:02