CareDx's Lower Priced Stock Offering Attracts Buyers At Higher Prices

CareDx Inc CDNA shares are trading higher by $1.49, or nearly 33 percent, at $5.90 in Thursday's session.

Before the open, the company announced at 4.3 million share offering at $4.00 per share. On many occasions, stock offerings can put a ceiling or floor in a stock as it tracks the offering price.

However, those recipients of the offering will be automatically in the money as investors are willing to pay much more for the stock in the open market. After a higher open, it had a brief retreat but found support ahead of the top of Wednesday's range ($4.75), only reaching $5.34 before continuing its move higher.

So far, the ensuing rally took CareDx to $6.40, but has fallen back into the upper $5.00 handle. That high marks the highest level for the stock since it peaked in Jan. 2016 at $6.84.