Why CDNA dropped massively today ?

CareDx Inc (CDNA) experienced a significant drop of 38.38%, erasing $2.2 billion in market value. The stock hit a 52-week low, which can be attributed to several factors: 1. **Regulatory Hurdles and Cash Burn**: CareDx's stock collapse is due to a confluence of bearish catalysts, including regulatory challenges and cash burn concerns. The company's financial performance for the first quarter of 2025, although strong with an EPS of $0.09 and an 18% revenue increase, failed to stabilize sentiment. Analysts highlighted a -16.7x P/E ratio and cash burn exceeding $100M annually, which contributed to the stock's decline. 2. **Overreaction to Director's Sale**: The sale of 10,000 shares by Director Peter Maag on July 7, 2025, at a weighted average price of $18.5831 per share, totaling $185,831, might have signaled to the market a lack of confidence in the company's future prospects. Such insider transactions can influence investor perceptions and lead to selling pressure. 3. **Market Sentiment and Volatility**: The broader market conditions and sentiment towards CareDx could have played a role. The stock's 35% intraday collapse indicates significant selling pressure, with institutional investors exploiting the 52-week high-to-low range for potential gains. In conclusion, CareDx's stock drop is likely a result of a combination of factors including regulatory challenges, cash burn, overreaction to director's sale and market sentiment and volatility.