President of Patient & Testing Services Of CareDx Sold 45% Of Their Shares

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 sale reduced their total holding by 45% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for CareDx

The Last 12 Months Of Insider Transactions At CareDx

Notably, that recent sale by Alexander Johnson is the biggest insider sale of CareDx shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$31.54. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year CareDx insiders didn't buy any company stock. 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?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. 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 Do The CareDx Insider Transactions Indicate?

Insiders haven't bought CareDx stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - CareDx has 3 warning signs we think you should be aware of.

But note: CareDx may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.