In a recent transaction on August 15, Sheena Jonathan, co-founder of Natera, Inc. (NASDAQ:NTRA), a leader in personalized genetic testing and diagnostics, sold a significant number of shares in the company. The transaction involved the sale of 12,000 shares of common stock at an average price of $121.01, totaling approximately $1.45 million.
The shares were sold under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to set up a trading schedule in advance to avoid accusations of insider trading. The prices at which the shares were sold ranged from $121.00 to $121.03, as reported in the filing. Further details on the specific number of shares sold at each price point within this range are available upon request.
Following the sale, Jonathan still maintains a significant stake in Natera. Directly, she holds 287,441 shares. Additionally, there are holdings for the benefit of Jonathan's minor children, which amount to 68,582 shares in the Caraluna 1 Trust and an equal number in the Caraluna 2 Trust. She has, however, disclaimed beneficial ownership of these shares, indicating that they are not under her direct control.
Natera's stock performance and insider transactions are closely watched by investors, as they can provide insights into the company's health and the confidence that executives and directors have in its future prospects. Jonathan's recent transaction follows the guidelines set forth by the Securities and Exchange Commission for insider trading and reporting.
Investors and the market will likely continue to monitor the trading activity of Natera's insiders for signs of the company's direction and the sentiment of its leadership team.
In other recent news, Natera Inc . has announced a significant increase in its revenue and volume growth for the second quarter of 2024. The company reported a 12% sequential revenue increase from the first quarter and a 58% surge compared to the same quarter of the previous year. Natera has also raised its full-year revenue guidance to approximately $1.5 billion, with a gross margin expectation of 55%. These figures are accompanied by a record number of test volumes and a rise in average selling prices.
Furthermore, the National Kidney Foundation has endorsed genetic testing for chronic kidney disease, supporting Natera's Renasight test. There has also been positive growth in Signatera clinical volumes, especially in colorectal and breast cancer. Despite the delay in the submission of the ALTAIR study to ESMO and the non-renewal of the partnership with Foundation Medicine, Natera anticipates a 40% revenue growth compared to 2023 and expects a modest sequential improvement in Signatera's ASP in the second half of the year.
In addition, the company plans steady sequential growth in volumes and revenue, and is investing in user experience and product enhancements. These recent developments indicate Natera's robust performance and strategic focus on expanding its product offerings, particularly in the oncology and organ health sectors.
InvestingPro Insights
Amidst the recent insider trading activity at Natera, Inc. (NASDAQ:NTRA), investors are keen to understand the company's financial health and future prospects. According to InvestingPro data, Natera has a market capitalization of $15.34 billion, reflecting a significant presence in the genetic testing industry. The company's revenue has shown impressive growth, with a 46.13% increase in the last twelve months as of Q2 2024, and an even more striking 58.13% quarterly revenue growth in Q2 2024.
Despite these strong growth figures, Natera currently operates with a negative P/E ratio of -50.73 and has not been profitable over the last twelve months. This is underscored by an operating income margin of -23.06% for the same period. However, the company's gross profit margin stands at a healthy 53.85%, indicating robust profitability on its core services and products.
InvestingPro Tips highlight that four analysts have recently revised their earnings estimates upwards for the upcoming period, suggesting a potential improvement in Natera's financial performance. Additionally, the company's liquid assets surpass its short-term obligations, indicating a solid liquidity position. It's also worth noting that Natera is trading near its 52-week high, with the price at 99.75% of this peak, and a substantial one-week price total return of 8.21%. These metrics may signal investor confidence and a positive market response to the company's growth trajectory.
For investors seeking a deeper analysis, InvestingPro provides additional insights, with a total of 14 InvestingPro Tips available, including perspectives on the company's debt levels, profitability expectations, and dividend policies. Visit https://www.investing.com/pro/NTRA for a comprehensive set of tips and real-time data to inform your investment decisions in Natera, Inc.
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