Natera, Inc. $NTRA Stock: Torray Investment Partners LLC Trims Stake

Key Points

• Torray Investment Partners cut its Natera stake by 36% in the third quarter, selling 3,505 shares and retaining 6,225 shares valued at about $2.57 million.
• Analysts’ consensus was “Moderate Buy,” with an average price target of $394.31; ratings ranged from strong buy to sell.
• Natera’s latest reported quarter beat estimates, with adjusted loss of $0.47 per share versus $0.49 expected and revenue of $752.75 million, up 37.7% year over year.

Torray Investment Partners LLC cut its holdings in Natera, Inc. (NASDAQ:NTRA - Free Report) by 36.0% in the 3rd quarter, according to its most recent 13F filing with the SEC. The firm owned 6,225 shares of the medical research company's stock after selling 3,505 shares during the period. Torray Investment Partners LLC's holdings in Natera were worth $2,573,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also modified their holdings of NTRA. BlackRock Inc. acquired a new stake in Natera during the second quarter worth about $2,962,770,000. Arrowstreet Capital Limited Partnership boosted its stake in Natera by 1.0% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,191,732 shares of the medical research company's stock valued at $238,334,000 after acquiring an additional 11,793 shares during the period. Maverick Capital Ltd. boosted its stake in Natera by 24.1% in the first quarter. Maverick Capital Ltd. now owns 1,171,633 shares of the medical research company's stock valued at $234,315,000 after acquiring an additional 227,605 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Natera by 10.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 833,376 shares of the medical research company's stock valued at $226,220,000 after purchasing an additional 80,440 shares during the last quarter. Finally, Bank of America Corp DE bought a new position in shares of Natera during the second quarter valued at approximately $199,960,000. 99.90% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on NTRA shares. Wells Fargo & Company lifted their target price on Natera from $220.00 to $284.00 and gave the stock an "equal weight" rating in a report on Friday, August 7th. Zacks Research downgraded Natera from a "hold" rating to a "strong sell" rating in a report on Friday, October 16th. Roth Capital began coverage on Natera in a research report on Thursday, October 22nd. They issued a "buy" rating and a $475.00 price target for the company. TD Cowen lifted their price target on Natera from $340.00 to $480.00 and gave the stock a "buy" rating in a research note on Tuesday, October 13th. Finally, Stephens upped their price objective on shares of Natera from $305.00 to $350.00 and gave the company an "overweight" rating in a research note on Wednesday, August 12th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $394.31.

Natera Stock Performance

Shares of NTRA opened at $388.63 on Wednesday. The company's 50 day moving average price is $379.22 and its 200 day moving average price is $267.89. Natera, Inc. has a 52 week low of $181.00 and a 52 week high of $437.41. The company has a market capitalization of $56.02 billion, a PE ratio of -285.76 and a beta of 1.55.

Natera (NASDAQ:NTRA - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The medical research company reported ($0.47) earnings per share for the quarter, beating the consensus estimate of ($0.49) by $0.02. The firm had revenue of $752.75 million for the quarter, compared to analyst estimates of $661.24 million. Natera had a negative net margin of 7.11% and a negative return on equity of 11.38%. The company's revenue for the quarter was up 37.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.74) EPS. On average, equities analysts forecast that Natera, Inc. will post -1.14 earnings per share for the current fiscal year.

Insider Activity at Natera

In related news, insider John Fesko sold 6,517 shares of Natera stock in a transaction on Monday, August 10th. The stock was sold at an average price of $321.53, for a total transaction of $2,095,411.01. Following the completion of the sale, the insider owned 197,257 shares of the company's stock, valued at approximately $63,424,043.21. This trade represents a 3.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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, insider Solomon Moshkevich sold 15,160 shares of the business's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $326.89, for a total value of $4,955,652.40. Following the completion of the transaction, the insider owned 110,859 shares in the company, valued at $36,238,698.51. This trade represents a 12.03% decrease in their position. The SEC filing for this sale provides additional information. 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 ninety days, insiders sold 45,256 shares of company stock valued at $16,455,344. 5.05% of the stock is owned by insiders.

Natera News Roundup

Here are the key news stories impacting Natera this week:

• Positive Sentiment: New oncology data presented at ESMO may strengthen the case for Natera’s cancer-testing business and broaden investor interest in its growth prospects. Natera stock: ESMO data broaden the oncology case
• Positive Sentiment: Analysts’ consensus price target is $394.31, slightly above the $388.63 reference opening price, and the consensus rating is “Moderate Buy.” That suggests modest potential upside, though the target is not a guarantee. Natera consensus target price
• Neutral Sentiment: Natera is due to report earnings November 5. The results and outlook could be a near-term catalyst, but the available preview does not provide specific forecasts. Natera to report earnings
• Neutral Sentiment: CFO Michael Brophy sold 1,178 shares under a pre-arranged Rule 10b5-1 plan and retained 48,480 shares. The planned nature and limited size of the sale may temper its significance as a signal about management’s outlook. CFO share sale
• Negative Sentiment: Recent coverage reported steep share declines, including drops of 6.5% and 8.4% in separate accounts. The headlines do not identify a definitive cause, but the pullback highlights volatility and risk ahead of earnings. Natera after-hours decline

Natera Profile

Natera, Inc is a diagnostics company that develops and commercializes molecular testing services designed to provide personalized genetic and genomic information. Its tests are used across reproductive health, oncology and organ transplantation, with the company combining next-generation sequencing and bioinformatics to analyze DNA and monitor disease-related signals.

In reproductive health, Natera offers Panorama noninvasive prenatal screening, Horizon carrier screening and Vistara single-gene disorder screening.

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