Why the Cardiex (ASX:CDX) share price, up 73% in 2020, is gaining again today

The CardieX share price is up 73% so far in 2020. And it's up another 2% in afternoon trading. We take a look at why..

heart shaped balloons flying in the air representing Cardiex share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Cardiex Ltd (ASX: CDX) share price is up 3.9% to 5.3 cents in afternoon trading after the company released a positive update on its half year sales.

The rise comes as the wider All Ordinaries Index (ASX: XAO) is slipping, down 0.2% to 6884 points.

What's driving the CardieX share price higher?

In its half year sales and corporate update, CardieX revealed it had achieved record sales for the first half of the 2021 financial year. This puts the health technology company in a position to post a 30% increase in sales compared to H1 FY2020. It's also the strongest first half results the company has posted in 5 years.

The company attributed the strong sales growth to continuing strength in sales to the research market along with new clinical trial contracts with Bayer AG (announced on 20 August).

In a forward-looking statement, CardieX CEO Craig Cooper said:

I expect this strength to continue into next year given the current pipeline of research sales and new clinical trials in process. With widespread vaccine distribution about to commence, I also expect sales to our traditional clinician market to recover strongly as the US comes out of continuing lock-downs and stay-at-home orders.

In an update to the company's previously announced share purchase plan (SPP), Cooper said:

We're targeting to raise $1.0 million under the SPP, however we may decide in our absolute discretion to close the SPP early, scale back applications, or accept an amount above or below the $1.0 million target depending on the level of demand received. We're expecting to close the SPP on Thursday, 31 December 2020.

CardieX also announced the appointment of Steven Kesten as its new chief medical officer and Mark Gorelick as its new chief product officer.

Company snapshot

CardieX is a global health technology company focused on vascular health issues. Its AtCor Medical division develops medical devices for measuring arterial stiffness and central blood pressure waveforms.

After falling for most of the previous 5 years, the CardieX share price has turned around in 2020. Despite dropping 66% during the wider COVID-19 market rout in February and March, CardieX shares are up 73% year-to-date. And up an impressive 420% from the 25 March lows.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »