Natera (NASDAQ:NTRA) Hits New 12-Month High - Here's Why

Key Points

• Natera shares reached a new 52-week high of $417.38, with the stock recently trading near $413 and well above its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive: Natera has a “Moderate Buy” consensus rating and an average price target of $336.07, although targets have recently been raised as high as $435.
• The company reported stronger-than-expected quarterly results, with revenue up 37.7% year over year to $752.75 million and a smaller-than-expected loss; institutional investors own approximately 99.9% of the stock.

Natera, Inc. (NASDAQ:NTRA - Get Free Report)'s share price reached a new 52-week high on Monday. The stock traded as high as $417.38 and last traded at $413.2120, with a volume of 237980 shares traded. The stock had previously closed at $412.56.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. UBS Group raised their price objective on Natera from $290.00 to $435.00 and gave the company a "buy" rating in a research note on Wednesday, September 9th. Sanford C. Bernstein assumed coverage on Natera in a report on Friday, June 26th. They set an "outperform" rating and a $310.00 target price for the company. Piper Sandler raised their price target on Natera from $249.00 to $363.50 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. Zacks Research upgraded Natera from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 12th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Natera in a research note on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Natera presently has an average rating of "Moderate Buy" and an average target price of $336.07.

Natera Stock Performance

The stock has a market capitalization of $58.96 billion, a P/E ratio of -300.47 and a beta of 1.54. The stock has a 50-day moving average price of $317.64 and a two-hundred day moving average price of $253.80.

Natera (NASDAQ:NTRA - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The medical research company reported ($0.47) EPS for the quarter, topping analysts' consensus estimates of ($0.49) by $0.02. Natera had a negative return on equity of 11.38% and a negative net margin of 7.11%.The company had revenue of $752.75 million during the quarter, compared to analyst estimates of $661.24 million. During the same quarter last year, the firm posted ($0.74) earnings per share. The firm's revenue was up 37.7% on a year-over-year basis. Equities analysts anticipate that Natera, Inc. will post -1.02 earnings per share for the current fiscal year.

Insider Activity at Natera

In other Natera news, insider Solomon Moshkevich sold 15,160 shares of the firm'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 sale, the insider directly owned 110,859 shares in the company, valued at $36,238,698.51. This trade represents a 12.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 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 Brophy sold 2,419 shares of the company's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $253.96, for a total value of $614,329.24. Following the transaction, the chief financial officer owned 54,295 shares in the company, valued at $13,788,758.20. This trade represents a 4.27% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 51,712 shares of company stock valued at $15,169,033 in the last three months. Corporate insiders own 5.05% of the company's stock.

Institutional Investors Weigh In On Natera

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. QRG Capital Management Inc. raised its holdings in Natera by 32.7% in the second quarter. QRG Capital Management Inc. now owns 19,488 shares of the medical research company's stock worth $5,290,000 after purchasing an additional 4,797 shares in the last quarter. Envestnet Portfolio Solutions Inc. grew its position in shares of Natera by 9.6% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 4,921 shares of the medical research company's stock worth $1,336,000 after buying an additional 429 shares during the period. Andra AP fonden grew its position in shares of Natera by 16.9% in the 2nd quarter. Andra AP fonden now owns 96,737 shares of the medical research company's stock worth $26,259,000 after buying an additional 14,000 shares during the period. Sequoia Financial Advisors LLC increased its stake in shares of Natera by 15.7% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 4,257 shares of the medical research company's stock worth $1,156,000 after acquiring an additional 578 shares in the last quarter. Finally, BlueCrest Capital Management Ltd bought a new position in shares of Natera in the 2nd quarter worth about $11,695,000. 99.90% of the stock is owned by hedge funds and other institutional investors.

Natera Company Profile

Natera, Inc is a diagnostics company that develops and commercializes molecular testing services based on cell-free DNA and other genomic technologies. The company focuses on reproductive health, oncology and organ health, providing tests intended to support screening, diagnosis, treatment planning and disease monitoring.

Its reproductive health portfolio includes Panorama, a noninvasive prenatal test that screens for certain chromosomal conditions, and Horizon, a carrier screening test.

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