UBS Group Begins Coverage on Natera (NASDAQ:NTRA)

Key Points

• UBS Group initiated coverage of Natera with a Buy rating and a $435 price target, implying 33.36% upside from the reported $326.19 share price.
• Natera’s latest quarterly results exceeded expectations: revenue rose 37.7% year over year to $752.75 million, while its adjusted loss of $0.47 per share was slightly better than estimates.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and average target of $330.83. However, insiders sold roughly $19.9 million of stock over the past 90 days.

Stock analysts at UBS Group initiated coverage on shares of Natera (NASDAQ:NTRA - Get Free Report) in a research note issued to investors on Wednesday, Marketbeat reports. The brokerage set a "buy" rating and a $435.00 price target on the medical research company's stock. UBS Group's price target indicates a potential upside of 33.36% from the stock's current price.

Other equities analysts also recently issued research reports about the company. Guggenheim upped their price target on Natera from $290.00 to $360.00 and gave the stock a "buy" rating in a research report on Wednesday, August 12th. Barclays reiterated an "overweight" rating and issued a $340.00 price objective on shares of Natera in a report on Friday, August 7th. Canaccord Genuity Group set a $375.00 target price on shares of Natera in a report on Friday, August 7th. BTIG Research raised their target price on shares of Natera from $290.00 to $320.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Finally, Leerink Partners set a $330.00 price target on shares of Natera in a research note on Friday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Natera currently has an average rating of "Moderate Buy" and an average target price of $330.83.

Natera Stock Performance

NASDAQ:NTRA traded up $2.05 on Wednesday, reaching $326.19. The company's stock had a trading volume of 38,126 shares, compared to its average volume of 1,341,579. Natera has a 1-year low of $157.43 and a 1-year high of $343.18. The firm has a market cap of $47.02 billion, a PE ratio of -239.56 and a beta of 1.54. The business's 50-day moving average price is $294.79 and its two-hundred day moving average price is $239.44.

Natera (NASDAQ:NTRA - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The medical research company reported ($0.47) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.49) by $0.02. The company had revenue of $752.75 million during the quarter, compared to the consensus estimate of $661.24 million. Natera had a negative return on equity of 11.38% and a negative net margin of 7.11%.The company's revenue for the quarter was up 37.7% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.74) earnings per share. As a group, sell-side analysts expect that Natera will post -1.02 EPS for the current year.

Insiders Place Their Bets

In other news, Director Rowan E. Chapman sold 2,964 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $216.78, for a total value of $642,535.92. Following the transaction, the director owned 3,124 shares of the company's stock, valued at approximately $677,220.72. This represents a 48.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herm Rosenman sold 16,530 shares of Natera stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $250.00, for a total value of $4,132,500.00. Following the sale, the director directly owned 4,250 shares of the company's stock, valued at approximately $1,062,500. The trade was a 79.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 71,206 shares of company stock worth $19,944,069 in the last 90 days. Corporate insiders own 5.05% of the company's stock.

Institutional Investors Weigh In On Natera

A number of institutional investors have recently modified their holdings of the business. Parallel Advisors LLC raised its stake in Natera by 5.5% in the 1st quarter. Parallel Advisors LLC now owns 905 shares of the medical research company's stock worth $181,000 after purchasing an additional 47 shares in the last quarter. Raiffeisen Bank International AG grew its position in shares of Natera by 48.5% during the 2nd quarter. Raiffeisen Bank International AG now owns 150 shares of the medical research company's stock worth $41,000 after purchasing an additional 49 shares in the last quarter. First Horizon Corp grew its position in shares of Natera by 5.5% during the 1st quarter. First Horizon Corp now owns 982 shares of the medical research company's stock worth $196,000 after purchasing an additional 51 shares in the last quarter. Siemens Fonds Invest GmbH increased its holdings in shares of Natera by 3.1% during the third quarter. Siemens Fonds Invest GmbH now owns 1,804 shares of the medical research company's stock worth $290,000 after purchasing an additional 54 shares during the period. Finally, Alamea Verwaltungs GmbH increased its holdings in shares of Natera by 2.9% during the fourth quarter. Alamea Verwaltungs GmbH now owns 2,229 shares of the medical research company's stock worth $515,000 after purchasing an additional 62 shares during the period. Institutional investors own 99.90% of the company's stock.

About Natera

Natera, Inc is a diagnostic company that develops and commercializes molecular testing services based on cell-free DNA and other genetic technologies. The company's tests are designed to help clinicians assess genetic and reproductive health, monitor organ transplants, and detect and track cancer.

Its principal products include Panorama, a noninvasive prenatal screening test; Horizon, a carrier screening test; Signatera, a personalized circulating tumor DNA test used in cancer monitoring; and Prospera, a molecular test intended to help assess the risk of organ transplant rejection.

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