Natera, Inc. (NASDAQ:NTRA) CEO and President Steven Leonard Chapman has recently sold a significant portion of his holdings in the company. On July 1, 2024, Chapman sold a total of 37,500 shares of Natera's common stock, with the transactions amounting to over $4 million.
The sales were executed in multiple transactions with prices ranging from $107.73 to $109.43 per share. Specifically, Chapman sold 24,008 shares at an average price of $107.73, another 11,061 shares at an average price of $108.61, and an additional 2,431 shares at an average price of $109.43.
These transactions were carried out under a Rule 10b5-1 trading plan, which Chapman had adopted on December 11, 2023. Such plans allow company insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information, providing an affirmative defense against accusations of insider trading.
It's also noteworthy that on June 28, 2024, Chapman acquired 37,500 shares through the vesting of Restricted Stock Units (RSUs). Each RSU represents a contingent right to receive one share of Natera's common stock. The vesting was part of an award granted on January 22, 2021, which was contingent upon the achievement of certain milestones related to the passage of time and Natera's stock price performance.
Following these transactions, Chapman's ownership in the company has been adjusted to reflect the changes. Investors and market watchers often pay close attention to insider buying and selling as it can provide insights into an insider’s perspective on the company's future performance.
Natera, headquartered in Austin, Texas, specializes in genetic testing and diagnostics with a focus on women's health, oncology, and organ health. The company's actions, including those of its executives, are closely monitored by investors for indications of the company's business trajectory and confidence from its leadership team.
In other recent news, Natera Inc . has initiated the DECIPHER trial for gastroesophageal adenocarcinoma treatment using its molecular residual disease test, Signatera. This development follows the company's Q1 2024 financial results, which showed an 18% sequential revenue increase and a 52% rise year-over-year, leading to upward revision of their revenue guidance for the year to between $1.42 billion and $1.45 billion. Wolfe Research and Jefferies have both maintained positive ratings for Natera, with Wolfe Research maintaining an outperform rating and a steady price target of $135, while Jefferies issued a buy rating with a price target of $142.
Natera is also set to present new findings on its molecular residual disease test, Signatera, at the upcoming 2024 American Society of Clinical Oncology Annual Meeting. The test has been recognized for its early market entry and adoption by over 40% of oncologists. Piper Sandler and BTIG have also raised their price targets for Natera, signaling confidence in the company's growth trajectory. These are among the recent developments that underscore Natera's strategic position within the genetic testing industry.
InvestingPro Insights
As investors scrutinize the recent stock sale by Natera, Inc.'s CEO, Steven Leonard Chapman, it's crucial to consider the broader financial context provided by InvestingPro data and tips. Natera's market capitalization stands at a robust $13.58 billion, reflecting significant investor interest and a sizeable presence in the genetic testing market. Despite this, the company's P/E ratio is currently negative at -35.36, indicating that it is not profitable as of the last twelve months ending Q1 2024. This aligns with an InvestingPro Tip highlighting that analysts do not expect Natera to be profitable this year.
However, Natera has shown remarkable revenue growth of 39.26% over the last twelve months as of Q1 2024, with an even higher quarterly growth rate of 52.11% in Q1 2024. This suggests that while the company is currently unprofitable, it is expanding its sales significantly. Another InvestingPro Tip to consider is the company's high return over the last year, with a 127.08% total price return, indicating strong investor confidence and a potentially favorable outlook for those considering long-term investment.
For those interested in more detailed analysis, there are additional InvestingPro Tips available that provide deeper insights into Natera's financial health and market position. These include observations on stock price volatility, debt levels, and trading patterns. Subscribers can access these tips and more at https://www.investing.com/pro/NTRA, and by using the coupon code PRONEWS24, new subscribers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a total of 13 additional tips that could further inform investment decisions.
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