Natera co-founder Sheena Jonathan sells shares worth over $296k By Investing.com

Natera, Inc. (NASDAQ:) co-founder Sheena Jonathan has sold 2,700 shares of the company’s common stock, according to a recent SEC filing. The transaction, which took place on June 18, 2024, amounted to over $296,000, with the shares being sold at an average price of $109.6591.

The filing revealed that the shares were sold in a series of transactions at prices ranging from $109.24 to $110.20. This sale was conducted under a Rule 10b5-1 trading plan, which was adopted by Jonathan on December 12, 2023. Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stocks, providing them the ability to avoid accusations of insider trading.

Following the transactions, Sheena Jonathan still owns a substantial amount of Natera’s stock, with 304,508 shares held directly. Additionally, indirect holdings through trusts named Caraluna 1 and Caraluna 2 Trust show that Jonathan has an interest in another 68,582 shares for each trust.

Investors and followers of Natera, Inc. are often interested in the trading activities of corporate insiders, as these can provide insights into the company’s performance and the executives’ perspectives on the stock’s value. The disclosed transactions offer a glimpse into such activities, although they do not necessarily indicate the company’s future performance.

Natera specializes in genetic testing and diagnostics, providing services that are integral to patient care in various medical fields. The company’s stock performance and the actions of its executives continue to be of interest to both current and potential investors.

In other recent news, Natera Inc . has been the focus of positive attention from several analyst firms, following strong Q1 2024 growth and raised guidance. The company reported a sequential revenue increase of 18% from the last quarter and 52% year-over-year. Jefferies initiated coverage on Natera shares with a Buy rating and a $142.00 price target, citing the company’s dominant market position and potential for upside in the 2024 guidance.

Piper Sandler and BTIG also raised their price targets for Natera, to $120 and $125 respectively, based on revised estimates for future revenue and earnings per share. Natera’s strategic position within the genetic testing industry, particularly with its minimal residual disease (MRD) testing product, Signatera, was highlighted as a key factor in these assessments.

The company is also set to present new findings on Signatera at the upcoming 2024 American Society of Clinical Oncology (ASCO) Annual Meeting. These developments reflect a positive outlook for Natera’s performance and growth.

InvestingPro Insights

As Natera, Inc. (NASDAQ:NTRA) navigates the complexities of the genetic testing market, recent activity by a company co-founder has caught the attention of investors. In light of this, a deeper analysis of Natera’s financial health and market performance may offer additional context to stakeholders monitoring the company’s trajectory.

InvestingPro data highlights Natera’s robust revenue growth, with a notable increase of 39.26% over the last twelve months as of Q1 2023. This is further accentuated by an even more impressive quarterly revenue growth rate of 52.11% for Q1 2023. Such figures suggest a strong demand for Natera’s genetic testing and diagnostics services, which could be a driving factor behind the company’s market valuation, currently standing at an adjusted market cap of 13.14 billion USD.

However, despite the revenue uptick, Natera’s profitability remains a concern, as evidenced by a negative Price/Earnings (P/E) ratio of -34.05. This metric aligns with one of the InvestingPro Tips, which indicates that analysts do not expect the company to be profitable this year. Additionally, the company’s high Price/Book ratio of 16.56 suggests that the stock is trading at a premium relative to its book value, a point that may warrant investor caution.

On the subject of stock performance, Natera has experienced significant price appreciation, with a one-year total return of 101.98%. This aligns with another InvestingPro Tip that notes the stock’s high return over the last year, a trend that may be of particular interest to long-term investors. For those considering a stake in Natera, the company’s recent strong return over the last three months, at 16.02%, may also be an encouraging sign.

For those seeking further insights, InvestingPro offers additional tips on Natera, providing a total of 13 tips that could help investors make more informed decisions. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, which can be found at https://www.investing.com/pro/NTRA.

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