Natera, Inc. (NASDAQ:NTRA) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts remain bullish on Natera: Twenty-three brokerages give the stock an average “Moderate Buy” rating, with a consensus 12-month price target of $330.83. Recent targets range from $320 at BTIG to $435 at UBS.
• Quarterly results exceeded expectations: Natera reported adjusted EPS of $(0.47), better than the $(0.49) consensus estimate, while revenue of $752.75 million rose 37.7% year over year and surpassed forecasts.
• Institutional ownership is substantial: Institutional investors and hedge funds own 99.90% of the company, while insiders sold 68,242 shares worth approximately $19.3 million over the last quarter, primarily under pre-arranged plans to cover tax obligations.

Shares of Natera, Inc. (NASDAQ:NTRA - Get Free Report) have been given an average rating of "Moderate Buy" by the twenty-three brokerages that are currently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, four have given a hold rating, sixteen have issued a buy rating and two have assigned a strong buy rating to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $330.8333.

A number of equities analysts have weighed in on the stock. BTIG Research lifted their price target on shares of Natera from $290.00 to $320.00 and gave the company a "buy" rating in a report on Friday, August 7th. Rothschild & Co Redburn began coverage on Natera in a report on Tuesday, September 8th. They set a "buy" rating and a $385.00 price objective for the company. Zacks Research raised Natera from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 12th. UBS Group lifted their target price on Natera from $290.00 to $435.00 and gave the company a "buy" rating in a report on Wednesday, September 9th. Finally, Barclays reissued an "overweight" rating and set a $340.00 price target on shares of Natera in a research report on Friday, August 7th.

Insider Buying and Selling

In related news, CFO Michael Brophy sold 2,419 shares of the stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $253.96, for a total transaction of $614,329.24. Following the completion of the sale, the chief financial officer owned 54,295 shares of the company's stock, valued at approximately $13,788,758.20. This represents a 4.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Steven Chapman sold 3,580 shares of the firm's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $254.07, for a total transaction of $909,570.60. Following the completion of the transaction, the chief executive officer owned 102,973 shares in the company, valued at $26,162,350.11. The trade was a 3.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 68,242 shares of company stock worth $19,301,534. Corporate insiders own 5.05% of the company's stock.

Institutional Investors Weigh In On Natera

Several large investors have recently made changes to their positions in NTRA. California State Teachers Retirement System boosted its position in Natera by 28,373.5% during the 2nd quarter. California State Teachers Retirement System now owns 56,324,789 shares of the medical research company's stock valued at $15,289,364,000 after purchasing an additional 56,126,974 shares during the period. BlackRock Inc. acquired a new stake in shares of Natera in the second quarter valued at approximately $2,962,770,000. JPMorgan Chase & Co. raised its holdings in shares of Natera by 10.5% during the fourth quarter. JPMorgan Chase & Co. now owns 12,854,334 shares of the medical research company's stock valued at $2,944,800,000 after buying an additional 1,225,420 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Natera by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 2,608,644 shares of the medical research company's stock valued at $596,078,000 after buying an additional 11,689 shares during the last quarter. Finally, Castle Hook Partners LP boosted its position in shares of Natera by 24.1% during the fourth quarter. Castle Hook Partners LP now owns 2,167,869 shares of the medical research company's stock worth $496,637,000 after buying an additional 420,621 shares during the period. Institutional investors and hedge funds own 99.90% of the company's stock.

Natera Price Performance

Shares of NTRA stock opened at $341.79 on Tuesday. The firm has a market cap of $49.27 billion, a P/E ratio of -251.31 and a beta of 1.54. Natera has a 1-year low of $157.43 and a 1-year high of $343.18. The firm's 50-day simple moving average is $298.96 and its 200-day simple moving average is $242.82.

Natera (NASDAQ:NTRA - Get Free Report) last released its 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. Natera had a negative net margin of 7.11% and a negative return on equity of 11.38%. The business had revenue of $752.75 million for the quarter, compared to analysts' expectations of $661.24 million. During the same period last year, the company earned ($0.74) earnings per share. The company's quarterly revenue was up 37.7% on a year-over-year basis. Analysts expect that Natera will post -1.02 earnings per share for the current fiscal year.

About Natera

Natera, Inc is a diagnostics company that develops and commercializes molecular testing services based on cell-free DNA and other genomic technologies. The company focuses on reproductive health, oncology and organ health, providing tests intended to support screening, diagnosis, treatment planning and disease monitoring.

Its reproductive health portfolio includes Panorama, a noninvasive prenatal test that screens for certain chromosomal conditions, and Horizon, a carrier screening test.

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