Some CareDx, Inc (NASDAQ:CDNA) shareholders may be a little concerned to see that the President of Patient & Testing Services, Alexander Johnson, recently sold a substantial US$1.1m worth of stock at a price of US$33.55 per share. That's a big disposal, and it decreased their holding size by 45%, which is notable but not too bad.
CareDx Insider Transactions Over The Last Year
Notably, that recent sale by Alexander Johnson is the biggest insider sale of CareDx shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$31.54. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Insiders in CareDx didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like CareDx better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of CareDx
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that CareDx insiders own 2.6% of the company, worth about US$42m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About CareDx Insiders?
Insiders haven't bought CareDx stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CareDx. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of CareDx.
Of course CareDx may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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