Natera (NASDAQ:NTRA) Hits New 1-Year High on Better-Than-Expected Earnings

Key Points

• Natera’s shares surged 17.9% to a new 52-week high after the company reported quarterly EPS of negative $0.47, beating estimates by $0.02, while revenue of $752.75 million exceeded expectations and rose 37.7% year over year.
• Analysts remain broadly optimistic, with a “Moderate Buy” consensus and an average price target of $282.05; several firms recently raised or set targets between $330 and $348.
• Insiders sold shares worth roughly $41.3 million over the past quarter, primarily through pre-arranged plans to cover tax obligations, while institutional investors own 99.9% of Natera’s stock.

Natera, Inc. (NASDAQ:NTRA - Get Free Report) shares reached a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $310.00 and last traded at $314.9070, with a volume of 9514 shares traded. The stock had previously closed at $265.38.

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 14.74% and a negative net margin of 9.05%.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.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on NTRA shares. Leerink Partners set a $330.00 price objective on shares of Natera in a research report on Friday. Robert W. Baird set a $348.00 price target on Natera in a research note on Friday. Wolfe Research started coverage on Natera in a research report on Tuesday, June 2nd. They set an "outperform" rating and a $260.00 price objective for the company. Canaccord Genuity Group raised their price target on shares of Natera from $285.00 to $330.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Finally, Royal Bank Of Canada assumed coverage on shares of Natera in a research report on Thursday, June 11th. They issued an "outperform" rating and a $275.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $282.05.

Insider Buying and Selling

In other news, insider Solomon Moshkevich sold 3,410 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $265.58, for a total value of $905,627.80. Following the completion of the sale, the insider owned 129,019 shares of the company's stock, valued at approximately $34,264,866.02. This represents a 2.57% decrease in their position. The transaction was disclosed in a filing with the SEC, 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, CFO Michael Burkes Brophy sold 478 shares of the business's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $274.22, for a total transaction of $131,077.16. Following the transaction, the chief financial officer owned 51,637 shares in the company, valued at approximately $14,159,898.14. The trade was a 0.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last quarter, insiders have sold 181,045 shares of company stock worth $41,330,968. 5.05% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Horizon Investments LLC lifted its holdings in shares of Natera by 22.0% during the 4th quarter. Horizon Investments LLC now owns 244 shares of the medical research company's stock valued at $56,000 after buying an additional 44 shares during the period. Sound Income Strategies LLC increased its position in Natera by 20.0% during the fourth quarter. Sound Income Strategies LLC now owns 270 shares of the medical research company's stock valued at $62,000 after acquiring an additional 45 shares during the last quarter. Savvy Advisors Inc. lifted its holdings in Natera by 3.1% in the fourth quarter. Savvy Advisors Inc. now owns 1,541 shares of the medical research company's stock valued at $353,000 after acquiring an additional 46 shares during the period. Parallel Advisors LLC boosted its position in Natera by 5.5% in the first quarter. Parallel Advisors LLC now owns 905 shares of the medical research company's stock worth $181,000 after purchasing an additional 47 shares during the last quarter. Finally, First Horizon Corp grew its stake 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 valued at $196,000 after purchasing an additional 51 shares during the period. 99.90% of the stock is currently owned by institutional investors.

Natera Trading Up 17.9%

The firm has a market capitalization of $44.80 billion, a P/E ratio of -191.48 and a beta of 1.51. The stock has a 50 day simple moving average of $252.06 and a 200-day simple moving average of $223.09.

About Natera

Natera is a global diagnostics company that develops and commercializes cell-free DNA and other genetic testing technologies for clinical applications. The company focuses on three principal areas: reproductive health (including non-invasive prenatal testing and carrier screening), oncology (tumor-informed assays for minimal residual disease and recurrence monitoring), and organ transplantation (cell-free DNA tests to detect allograft injury). Natera combines laboratory testing, proprietary bioinformatics, and clinical reporting to deliver personalized genetic information to clinicians and patients.

Key product offerings include Panorama, a non-invasive prenatal test that screens for fetal chromosomal abnormalities and select single-gene conditions; Horizon carrier screening for inherited conditions; Signatera, a personalized, tumor-informed assay used for detecting minimal residual disease and monitoring treatment response in cancer patients; and Prospera, a donor-derived cell-free DNA test used to assess the risk of organ rejection.

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