Natera, Inc. (NASDAQ:NTRA) CEO and President, Steven Leonard Chapman, has sold a substantial number of shares in the company, according to a recent SEC filing. The transactions, which took place on July 15, 2024, involved the sale of 5,496 shares of common stock for a total value exceeding $600,000.
Investors tracking insider activity may note that the shares were sold at prices ranging from $111.17 to $112.14, with the bulk of the shares (5,270) being sold at a weighted average price of $111.6344, and a smaller tranche (226 shares) at an average of $112.205. Following the sale, Chapman's direct ownership in Natera stands at 207,855 shares.
The filing indicated that these sales were pre-planned under a Rule 10b5-1 trading plan, which Chapman had adopted on December 11, 2023. This allows corporate insiders to sell shares over a predetermined schedule to avoid accusations of trading on nonpublic information.
Natera, headquartered in Austin, Texas, specializes in genetic testing and diagnostics, providing services in women's health, oncology, and organ health. As with any insider transaction, the market often looks at such sales for signals about executive confidence in the company's future prospects.
Shareholders and potential investors in Natera can request more detailed information about the exact number of shares sold at each price point within the reported range by contacting the company directly.
In other recent news, ARK ETFs, led by Cathie Wood, has made significant trades, notably buying a substantial amount of shares in Oklo Inc and selling a large portion of its stake in UiPath (NYSE:PATH) Inc. The funds also increased their investment in Natera Inc . Natera, a pioneer in genetic testing, has recently launched the DECIPHER trial for gastroesophageal adenocarcinoma treatment. The trial will employ Natera's Signatera, a molecular residual disease test, to guide treatment.
Natera's first quarter of 2024 performance showed a robust 18% sequential revenue increase and a 52% rise year-over-year, leading to an upward revision of their revenue guidance for the year. Wolfe Research and Jefferies have both maintained positive ratings for Natera. Wolfe Research has reaffirmed its Outperform rating with a steady price target of $135. Jefferies initiated coverage on Natera shares with a Buy rating and a price target of $142.
Natera is also set to present new findings on its molecular residual disease test, Signatera, at the upcoming 2024 American Society of Clinical Oncology Annual Meeting. These recent developments underscore Natera's strategic position within the genetic testing industry and its potential for future growth.
InvestingPro Insights
The recent insider selling by Natera, Inc.'s (NASDAQ:NTRA) CEO Steven Leonard Chapman may raise questions among investors regarding the company's financial health and future prospects. To provide a clearer picture, let's delve into some key data and insights from InvestingPro.
InvestingPro data shows that Natera has a market capitalization of $13.55 billion. Despite significant revenue growth, with the last twelve months as of Q1 2024 showing a 39.26% increase and a quarterly surge of 52.11%, the company is operating at a loss. This is reflected in its negative P/E ratio of -35.88, which further adjusted to -37.09 for the same period. However, the company's gross profit margin stands strong at 50.28%.
Two notable InvestingPro Tips for Natera are its high return over the last year and its liquid assets exceeding short-term obligations. The former suggests that investors have seen substantial gains, with the stock providing a 126.77% return over the past year, and currently trading at 94.15% of its 52-week high. The latter indicates that the company has a solid liquidity position, which is crucial for meeting its immediate financial obligations.
It's also worth noting that Natera has been flagged for trading at a high Price/Book multiple of 17.07, which may suggest the stock is valued richly relative to its book value. While analysts do not expect the company to be profitable this year, the high returns and strong revenue growth may still present a compelling narrative for some investors.
For those interested in a deeper dive into Natera's financials and future outlook, InvestingPro offers additional insights. There are more InvestingPro Tips available, providing a comprehensive analysis of Natera's performance and potential investment opportunities. To explore these further, visit https://www.investing.com/pro/NTRA and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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