Natera (NASDAQ:NTRA) Posts Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Natera beat quarterly estimates: It reported a loss of $0.47 per share versus the $0.49 expected, while revenue reached $752.75 million, up 37.7% year over year and well above the $661.24 million consensus.
• The stock surged following the results, trading near $322 and its 12-month high. Analysts remained broadly bullish, with a “Moderate Buy” consensus rating and an average price target of $299.65.
• Natera remains unprofitable and highly valued, while insiders sold shares worth roughly $41.3 million over the past 90 days. The company’s negative net margin and elevated valuation could leave the stock vulnerable if growth slows.

Natera (NASDAQ:NTRA - Get Free Report) posted its earnings results on Friday. The medical research company reported ($0.47) earnings per share for the quarter, topping analysts' consensus estimates of ($0.49) by $0.02, FiscalAI reports. Natera had a negative net margin of 7.11% and a negative return on equity of 11.82%. The firm had revenue of $752.75 million for the quarter, compared to analysts' expectations of $661.24 million. During the same quarter in the previous year, the firm posted ($0.74) earnings per share. The company's revenue was up 37.7% on a year-over-year basis.

Natera Stock Performance

Natera stock traded up $56.72 during mid-day trading on Friday, reaching $322.10. The company's stock had a trading volume of 3,385,814 shares, compared to its average volume of 1,072,972. Natera has a 12-month low of $149.38 and a 12-month high of $323.01. The company has a market capitalization of $46.13 billion, a P/E ratio of -236.84 and a beta of 1.51. The firm's fifty day moving average price is $254.03 and its two-hundred day moving average price is $223.79.

Insider Buying and Selling

In related news, Director Roelof Botha sold 78,000 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $220.31, for a total transaction of $17,184,180.00. Following the sale, the director owned 1,076,198 shares of the company's stock, valued at approximately $237,097,181.38. This represents a 6.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Steven Leonard Chapman sold 41,124 shares of Natera stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $221.03, for a total value of $9,089,637.72. Following the transaction, the chief executive officer directly owned 108,743 shares of the company's stock, valued at $24,035,465.29. The trade was a 27.44% decrease in their position. 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. Insiders sold 181,045 shares of company stock valued at $41,330,968 in the last 90 days. Corporate insiders own 5.05% of the company's stock.

Institutional Trading of Natera

Institutional investors and hedge funds have recently bought and sold shares of the company. Horizon Investments LLC bought a new position in shares of Natera in the third quarter worth $32,000. Bank of Jackson Hole Trust boosted its stake in Natera by 103.8% during the fourth quarter. Bank of Jackson Hole Trust now owns 163 shares of the medical research company's stock valued at $37,000 after buying an additional 83 shares during the period. Kemnay Advisory Services Inc. purchased a new position in Natera during the fourth quarter worth about $39,000. Greenline Wealth Management LLC purchased a new position in Natera during the fourth quarter worth about $41,000. Finally, HM Payson & Co. increased its stake in Natera by 214.9% in the 4th quarter. HM Payson & Co. now owns 211 shares of the medical research company's stock worth $48,000 after acquiring an additional 144 shares during the last quarter. 99.90% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Natera

Here are the key news stories impacting Natera this week:

• Positive Sentiment: Revenue significantly exceeded expectations. Natera generated $752.8 million in second-quarter revenue, up 37.7% year over year and well above the $661.2 million analyst consensus. Gross margin also improved to 64.5% from 63.4% a year earlier. Natera Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The quarterly loss narrowed. Natera reported a loss of $0.47 per share, compared with a $0.74-per-share loss in the prior-year quarter, and better than the $0.49 loss expected by analysts. The result suggests continued operating improvement despite the company remaining unprofitable. Natera Reports Q2 Loss and Beats Revenue Estimates
• Positive Sentiment: Management raised its fiscal 2026 revenue outlook to approximately $2.9 billion, above the roughly $2.8 billion consensus estimate. The higher guidance points to sustained momentum across Natera’s reproductive health, oncology, and transplant-testing businesses.
• Positive Sentiment: JPMorgan raised its price target on NTRA from $315 to $360 and maintained an “overweight” rating, signaling that the bank sees additional upside after the earnings beat. Benzinga
• Positive Sentiment: Natera submitted its Signatera bladder-cancer test to Japan’s PMDA for approval as a companion diagnostic. Clearance could expand the company’s international oncology market and create another source of long-term growth. Natera Submits Signatera to Japan’s PMDA
• Neutral Sentiment: Several executives sold shares under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards. Because the sales were relatively small compared with their remaining holdings and were not discretionary open-market disposals, they provide limited negative information.
• Negative Sentiment: Natera remains unprofitable, and its very high valuation leaves the shares vulnerable to profit-taking if growth slows or future results fail to exceed elevated expectations. Commentary identifying NTRA as entering a potential profit-taking zone highlights this near-term risk. IBD 50 Stock Natera Profit-Taking Zone

Wall Street Analyst Weigh In

Several analysts recently weighed in on the stock. Barclays reissued an "overweight" rating and issued a $340.00 price objective on shares of Natera in a research note on Friday. Guggenheim increased their target price on Natera from $270.00 to $290.00 and gave the stock a "buy" rating in a report on Monday, June 29th. Wolfe Research began coverage on shares of Natera in a research report on Tuesday, June 2nd. They issued an "outperform" rating and a $260.00 price target on the stock. Piper Sandler reaffirmed an "overweight" rating and set a $249.00 price objective on shares of Natera in a report on Tuesday, May 12th. Finally, UBS Group set a $260.00 price target on Natera in a research report on Wednesday, June 24th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Natera currently has an average rating of "Moderate Buy" and a consensus target price of $299.65.

Natera Company Profile

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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