Natera (NASDAQ:NTRA) Stock Price Down 7.5% - Time to Sell?

Key Points

• Shares fell 7.5% on Friday to about $187.83 (low $186.95) on volume of ~1.48M shares, up 24% from the average session volume.
• Natera beat the quarter (EPS $0.35 vs. -$0.46 est.; revenue $665.5M vs. $600.7M est.) but still shows a negative net margin (−9.03%) and analysts forecast a full-year EPS of −1.49.
• Analyst sentiment is mixed but tilted positive with a consensus rating of “Moderate Buy” and an average price target of $253.47; notable actions include Barclays raising its target to $270 while Weiss Ratings remains a sell.

Natera, Inc. (NASDAQ:NTRA - Get Free Report) shares traded down 7.5% on Friday . The stock traded as low as $186.95 and last traded at $187.83. 1,477,091 shares changed hands during mid-day trading, an increase of 24% from the average session volume of 1,193,301 shares. The stock had previously closed at $203.00.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Barclays upped their price target on shares of Natera from $230.00 to $270.00 and gave the stock an "overweight" rating in a report on Monday, December 15th. Canaccord Genuity Group restated a "buy" rating on shares of Natera in a report on Monday, January 12th. Wall Street Zen cut shares of Natera from a "buy" rating to a "hold" rating in a report on Saturday, April 4th. Wells Fargo & Company increased their target price on shares of Natera from $205.00 to $215.00 and gave the stock an "equal weight" rating in a report on Friday, February 27th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Natera in a report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $253.47.

Natera Stock Performance

The firm has a market capitalization of $26.66 billion, a P/E ratio of -122.94 and a beta of 1.68. The business's fifty day moving average price is $204.84 and its two-hundred day moving average price is $209.97.

Natera (NASDAQ:NTRA - Get Free Report) last announced its earnings results on Thursday, February 26th. The medical research company reported $0.35 earnings per share for the quarter, topping the consensus estimate of ($0.46) by $0.81. Natera had a negative return on equity of 15.28% and a negative net margin of 9.03%.The firm had revenue of $665.50 million for the quarter, compared to the consensus estimate of $600.68 million. During the same period in the previous year, the business earned ($0.41) EPS. Sell-side analysts predict that Natera, Inc. will post -1.49 earnings per share for the current year.

Insider Activity at Natera

In other news, CFO Michael Burkes Brophy sold 785 shares of the business's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $204.13, for a total transaction of $160,242.05. Following the transaction, the chief financial officer owned 63,354 shares of the company's stock, valued at approximately $12,932,452.02. The trade was a 1.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Steven Leonard Chapman sold 5,623 shares of the company's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $204.13, for a total transaction of $1,147,822.99. Following the completion of the transaction, the chief executive officer directly owned 156,607 shares in the company, valued at $31,968,186.91. The trade was a 3.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 314,545 shares of company stock worth $73,141,185 in the last quarter. 5.63% of the stock is owned by insiders.

Hedge Funds Weigh In On Natera

Several hedge funds have recently added to or reduced their stakes in NTRA. Mozayyx Management LLC acquired a new stake in shares of Natera in the fourth quarter valued at approximately $309,000. Caitong International Asset Management Co. Ltd acquired a new stake in Natera in the fourth quarter valued at $175,000. Reflection Asset Management acquired a new stake in Natera in the fourth quarter valued at $29,000. Tobam increased its position in shares of Natera by 24,935.0% in the fourth quarter. Tobam now owns 5,007 shares of the medical research company's stock valued at $1,147,000 after buying an additional 4,987 shares in the last quarter. Finally, Groupama Asset Managment increased its position in shares of Natera by 19.5% in the fourth quarter. Groupama Asset Managment now owns 92,256 shares of the medical research company's stock valued at $21,135,000 after buying an additional 15,072 shares in the last quarter. 99.90% of the stock is currently owned by hedge funds and other institutional investors.

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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