Natera (NASDAQ:NTRA) Trading Down 9.5% Following Weak Earnings

Key Points

• Stock down 9.5% after Natera reported a Q1 EPS miss of ($0.60) versus ($0.53) expected, despite a revenue beat of $696.6M (up 38.8% year‑over‑year).
• Management gave FY‑2026 revenue guidance of about $2.7–$2.8B in line with expectations, and analysts maintain a consensus "Moderate Buy" with an average target near $255.67.
• Insiders have sold ~38,266 shares worth roughly $7.75M over the last 90 days (including CFO and CEO transactions), mostly executed under Rule 10b5‑1 plans, which may concern some investors.

Natera, Inc. (NASDAQ:NTRA - Get Free Report) shares fell 9.5% during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $198.50 and last traded at $198.8540. 1,012,560 shares traded hands during mid-day trading, a decline of 19% from the average session volume of 1,244,272 shares. The stock had previously closed at $219.82.

The medical research company reported ($0.60) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.53) by ($0.07). The company had revenue of $696.64 million for the quarter, compared to the consensus estimate of $617.10 million. Natera had a negative return on equity of 15.28% and a negative net margin of 9.03%.The firm's revenue for the quarter was up 38.8% on a year-over-year basis. During the same period in the prior year, the business earned ($0.50) earnings per share.

More Natera News

Here are the key news stories impacting Natera this week:

• Positive Sentiment: Revenue beat and strong growth — Natera reported Q1 revenue of $696.6M, up 38.8% year‑over‑year, and improved gross margin (64.7%), showing solid demand expansion. Natera Reports First Quarter 2026 Financial Results
• Positive Sentiment: Analyst price-target lift — Wells Fargo raised its price target to $220 (from $215) while keeping an Equal Weight rating, implying modest upside relative to the current share level. Wells Fargo Price Target Note
• Neutral Sentiment: FY‑2026 revenue guidance in line with expectations — Management provided a revenue range around $2.7B–$2.8B (roughly matching consensus), which reduces surprise risk on the top line but left EPS clarity limited. FY2026 Guidance (slide deck / press release)
• Neutral Sentiment: Analyst/press coverage on metrics — Zacks and others dissected Q1 results and key operating metrics; useful for assessing cadence and margin trends but not a direct catalyst. Zacks: Q1 key metrics
• Negative Sentiment: EPS missed estimates — Reported EPS missed consensus (company reported roughly a ($0.60) loss vs. a ~($0.53) expectation), which raises near‑term profitability concerns despite top-line strength. MarketBeat: Q1 earnings summary
• Negative Sentiment: Insider selling — CEO sold about $186k of stock and another executive sale of 3,405 shares was reported; insider sales can be viewed negatively by investors even if common for diversification. CEO Sells $185,956.32 in Stock Solomon Moshkevich Sells 3,405 Shares

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. William Blair began coverage on Natera in a report on Tuesday, April 14th. They issued an "outperform" rating on the stock. Robert W. Baird set a $265.00 price objective on shares of Natera in a report on Friday. Wall Street Zen upgraded shares of Natera from a "hold" rating to a "buy" rating in a report on Saturday, April 18th. Wells Fargo & Company boosted their price objective on Natera from $215.00 to $220.00 and gave the stock an "equal weight" rating in a report on Friday. Finally, Morgan Stanley cut their price target on shares of Natera from $265.00 to $250.00 and set an "overweight" rating on the stock in a report on Tuesday, March 3rd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Natera presently has a consensus rating of "Moderate Buy" and a consensus target price of $255.67.

Insider Buying and Selling at Natera

In related news, CFO Michael Burkes Brophy sold 3,070 shares of the firm's stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $193.74, for a total transaction of $594,781.80. Following the completion of the transaction, the chief financial officer owned 58,291 shares of the company's stock, valued at $11,293,298.34. This trade represents a 5.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 John Fesko sold 1,688 shares of the business's stock in a transaction on Monday, April 27th. The stock was sold at an average price of $204.10, for a total value of $344,520.80. Following the completion of the sale, the insider directly owned 187,511 shares in the company, valued at $38,270,995.10. This trade represents a 0.89% 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. Insiders have sold a total of 38,266 shares of company stock valued at $7,747,808 over the last ninety days. Company insiders own 5.63% of the company's stock.

Hedge Funds Weigh In On Natera

Several institutional investors have recently bought and sold shares of NTRA. JPMorgan Chase & Co. lifted its position in Natera by 10.5% in the fourth quarter. JPMorgan Chase & Co. now owns 12,854,334 shares of the medical research company's stock worth $2,944,800,000 after buying an additional 1,225,420 shares during the last quarter. Wellington Management Group LLP raised its position in Natera by 94.7% in the 4th quarter. Wellington Management Group LLP now owns 4,976,325 shares of the medical research company's stock worth $1,140,026,000 after purchasing an additional 2,420,263 shares during the period. State Street Corp boosted its position in shares of Natera by 2.2% during the third quarter. State Street Corp now owns 3,389,599 shares of the medical research company's stock valued at $545,624,000 after buying an additional 72,087 shares during the period. Franklin Resources Inc. raised its holdings in shares of Natera by 37.5% in the third quarter. Franklin Resources Inc. now owns 2,665,013 shares of the medical research company's stock worth $428,987,000 after buying an additional 727,366 shares during the period. Finally, Coatue Management LLC boosted its holdings in Natera by 1,446.1% during the 4th quarter. Coatue Management LLC now owns 2,633,334 shares of the medical research company's stock valued at $603,270,000 after acquiring an additional 2,463,008 shares during the period. Institutional investors own 99.90% of the company's stock.

Natera Stock Down 10.1%

The business has a 50 day simple moving average of $202.23 and a two-hundred day simple moving average of $215.02. The firm has a market cap of $28.12 billion, a PE ratio of -129.48 and a beta of 1.57.

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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