Nikko Asset Management Reduces Stake in CareDx by Over 10%
Nikko Asset Management Americas Inc. has reduced its holdings in CareDx, Inc. (NASDAQ:CDNA) by 10.3% during the second quarter of 2023. According to its recent 13F filing with the Securities and Exchange Commission, the institutional investor now owns 1,235,591 shares after selling 141,163 shares in the quarter. The remaining stake is valued at approximately $24.1 million.
This adjustment in Nikko’s portfolio comes amid various changes in the ownership landscape of CareDx. Tower Research Capital LLC significantly increased its investment in the company, raising its stake by 120.6%. Following the purchase of an additional 4,160 shares, Tower now holds 7,608 shares worth about $149,000. Similarly, Man Group plc enhanced its position in CareDx by 22.7%, acquiring an additional 10,252 shares for a total of 55,392 shares valued at $1.1 million.
Other notable transactions include Meridiem Capital Partners LP, which entered a new stake in CareDx valued at $2.4 million, and Lazard Asset Management LLC, which raised its holdings by an impressive 642.8%. Lazard now owns 102,740 shares, valued at around $2.0 million, after obtaining an additional 88,909 shares. Balyasny Asset Management L.P. also made its entry with a new stake worth approximately $821,000.
Analyst Ratings and Market Performance
Recent evaluations from research firms reflect a mixed outlook for CareDx. Wall Street Zen downgraded the company from a “buy” to a “hold” rating. In contrast, BTIG Research increased its price target from $22.00 to $25.00, maintaining a “buy” rating. Zacks Research upgraded CareDx from a “strong sell” to a “hold” rating, while Weiss Ratings reiterated a “hold (c-)” rating. Currently, four analysts rate the stock as a “buy,” and five recommend holding, with a consensus price target set at $26.00.
On November 4, 2023, CareDx reported its quarterly earnings, revealing $0.28 earnings per share, surpassing the consensus estimate of $0.13 by $0.15. The company generated revenue of $100.06 million, exceeding analysts’ expectations of $95.25 million. CareDx also reported a year-over-year revenue increase of 20.7%, compared to the previous year’s earnings per share of ($0.14).
Shares of CareDx opened at $20.56 on the following Friday, reflecting a 3.8% increase. The stock has fluctuated between a 12-month low of $10.96 and a high of $25.95. It currently holds a market capitalization of $1.06 billion, with a price-to-earnings ratio of 17.28 and a beta of 2.54.
About CareDx
CareDx, Inc. specializes in the development and commercialization of diagnostic solutions aimed at transplant patients and their caregivers, both in the United States and internationally. Their product offerings include AlloSure Kidney, AlloMap Heart, AlloSure Heart, and AlloSure Lung, which utilize donor-derived cell-free DNA (dd-cfDNA) technology tailored for various transplant patients.
As the investment landscape shifts and CareDx continues to navigate its market position, the upcoming quarters will be crucial for both institutional investors and the company’s overall growth trajectory.
