Natera (NASDAQ:NTRA) Shares Gap Down Following Weak Earnings

Key Points

• Natera shares fell sharply, opening at $319.99 versus the prior close of $363.76, after weaker-than-expected earnings.
• Quarterly revenue rose 34.1% year over year to about $794 million, beating forecasts, but the loss of $0.42 per share was wider than analysts’ expected $0.28 loss. The company also raised its FY2026 sales outlook.
• Medicare coverage for Natera’s Signatera test in liver cancer could support broader access and adoption of its oncology products.

Natera, Inc. (NASDAQ:NTRA - Get Free Report) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $363.76, but opened at $319.99. Natera shares last traded at $320.7670, with a volume of 726,657 shares.

The medical research company reported ($0.42) EPS for the quarter, missing the consensus estimate of ($0.28) by ($0.14). The business had revenue of $793.98 million during the quarter, compared to analysts' expectations of $707.54 million. Natera had a negative net margin of 7.11% and a negative return on equity of 11.38%. Natera's revenue was up 34.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.64) earnings per share.

Key Headlines Impacting Natera

Here are the key news stories impacting Natera this week:

• Positive Sentiment: Third-quarter revenue rose 34.1% year over year to $794 million, beating analyst expectations of about $708 million. Natera also raised its FY2026 sales outlook, supporting the company’s growth outlook. Natera Q3 results and outlook
• Positive Sentiment: Medicare coverage for Signatera in hepatocellular carcinoma (HCC) could improve access to the test and support adoption of Natera’s oncology products. Medicare coverage for Signatera in HCC
• Neutral Sentiment: Natera announced a leadership transition. The available report does not specify the transition’s timing or details, leaving its implications for strategy and execution unclear. Natera leadership transition
• Negative Sentiment: The quarterly loss narrowed from a year earlier, but the reported loss per share was worse than analyst expectations. That earnings shortfall likely contributed to the sell-off despite the revenue beat and upgraded sales outlook. Natera Q3 earnings report

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Piper Sandler boosted their price objective on Natera from $249.00 to $363.50 and gave the stock an "overweight" rating in a research note on Wednesday, August 12th. Weiss Ratings restated a "sell (d-)" rating on shares of Natera in a report on Thursday, October 15th. Leerink Partners set a $330.00 price objective on Natera in a research report on Friday, August 7th. Canaccord Genuity Group boosted their price target on Natera from $375.00 to $500.00 and gave the company a "buy" rating in a research note on Monday, October 19th. Finally, BTIG Research upped their target price on Natera from $320.00 to $430.00 and gave the stock a "buy" rating in a research note on Tuesday, October 27th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $394.31.

Insider Activity

In related news, insider John Fesko sold 6,517 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $321.53, for a total value of $2,095,411.01. Following the completion of the transaction, the insider directly owned 197,257 shares in the company, valued at approximately $63,424,043.21. This represents a 3.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through 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, CEO Steven Chapman sold 3,801 shares of Natera stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $411.80, for a total transaction of $1,565,251.80. Following the sale, the chief executive officer owned 87,431 shares of the company's stock, valued at approximately $36,004,085.80. This represents a 4.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 90 days, insiders sold 53,573 shares of company stock worth $19,856,400. 5.05% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. CENTRAL TRUST Co increased its stake in Natera by 13,200.0% in the third quarter. CENTRAL TRUST Co now owns 399 shares of the medical research company's stock valued at $165,000 after purchasing an additional 396 shares during the last quarter. King Luther Capital Management Corp increased its position in Natera by 2.6% during the 3rd quarter. King Luther Capital Management Corp now owns 18,836 shares of the medical research company's stock worth $7,785,000 after purchasing an additional 472 shares during the period. Maryland State Retirement & Pension System raised its position in Natera by 12.5% in the third quarter. Maryland State Retirement & Pension System now owns 8,260 shares of the medical research company's stock worth $3,414,000 after acquiring an additional 920 shares in the last quarter. Ritholtz Wealth Management lifted its stake in shares of Natera by 4.3% in the third quarter. Ritholtz Wealth Management now owns 1,726 shares of the medical research company's stock valued at $713,000 after purchasing an additional 71 shares during the period. Finally, Jefferies Financial Group Inc. raised its holdings in Natera by 16.5% during the third quarter. Jefferies Financial Group Inc. now owns 6,355 shares of the medical research company's stock worth $2,627,000 after purchasing an additional 898 shares during the last quarter. Institutional investors and hedge funds own 99.90% of the company's stock.

Natera Stock Down 13.1%

The firm's fifty day simple moving average is $380.81 and its 200-day simple moving average is $269.30. The company has a market cap of $45.55 billion, a PE ratio of -232.40 and a beta of 1.55.

About Natera

Natera, Inc is a diagnostics company that develops and commercializes molecular testing services designed to provide personalized genetic and genomic information. Its tests are used across reproductive health, oncology and organ transplantation, with the company combining next-generation sequencing and bioinformatics to analyze DNA and monitor disease-related signals.

In reproductive health, Natera offers Panorama noninvasive prenatal screening, Horizon carrier screening and Vistara single-gene disorder screening.

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