Some CareDx, Inc (NASDAQ:CDNA) shareholders may be a little concerned to see that the Independent Director, George Bickerstaff, recently sold a substantial US$631k worth of stock at a price of US$63.07 per share. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.
CareDx Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Lead Independent Director, Michael Goldberg, for US$2.1m worth of shares, at about US$73.36 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$66.00). So it may not shed much light on insider confidence at current levels.
Insiders in CareDx didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does CareDx Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.4% of CareDx shares, worth about US$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The CareDx Insider Transactions Indicate?
An insider sold CareDx shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CareDx. At Simply Wall St, we found 3 warning signs for CareDx that deserve your attention before buying any shares.
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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, but not derivative transactions.
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