Natera, Inc.'s (NASDAQ:NTRA) CEO and President, Steven Leonard Chapman, has sold a significant portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transactions, which took place on March 15 and March 28, involved the sale of Natera common stock for a total value exceeding $4.7 million.
On March 15, Chapman sold 10,265 shares at a weighted average price of $87.9806, with prices ranging from $87.4050 to $88.40. The same day, he sold another 20,575 shares at an average of $88.9708, with individual transactions priced between $88.4050 and $89.39. Additionally, 20,070 shares were sold at an average price of $89.6049, within a price range of $89.4050 to $89.90. These sales were executed under a Rule 10b5-1 trading plan previously adopted on December 11, 2023.
Later in the month, on March 28, Chapman sold 2,662 shares at a price of $90.4158. This sale was reportedly conducted to fulfill tax obligations related to the vesting of restricted stock units (RSUs), as per a prearranged 10b5-1 plan.
Following these transactions, Chapman's direct holdings in Natera have been reduced, although the exact number of shares he retains was not disclosed in the filing. It is noted that the shares sold were held indirectly by the Chapman Family Trust, of which Chapman is a trustee with voting and dispositive power. He has disclaimed beneficial ownership of these shares, except to the extent of his pecuniary interest.
In addition to the sales, Chapman also engaged in a transaction coded "M" on March 27, where he acquired 5,184 RSUs at no cost, which represents a contingent right to receive an equivalent number of common stock shares. These units are part of a vesting plan that began on March 27, 2021, with a quarter of the RSUs vesting initially and the remainder vesting in equal quarterly installments over four years.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. However, it is essential to consider that selling activity can be motivated by various personal financial planning reasons and may not necessarily reflect a lack of confidence in the company.
InvestingPro Insights
Natera, Inc. (NASDAQ:NTRA) has been under the investor's microscope recently with CEO Steven Leonard Chapman's sale of company stock. To provide a deeper understanding of Natera's financial health and market performance, here are some key metrics and InvestingPro Tips:
InvestingPro Data shows Natera with a market capitalization of $11.04 billion. Despite the company's significant revenue growth of 31.99% over the last twelve months as of Q4 2023, it is important to note the company's P/E ratio stands at -24.17, indicating that it is not currently profitable. Additionally, the Price / Book ratio is at a high 14.43, suggesting that the stock may be valued aggressively compared to the company's book value.
Two InvestingPro Tips that stand out in the context of the recent insider selling are:
- Analysts have revised their earnings upwards for the upcoming period, which could signal optimism about the company's future performance.
- Despite this optimism, analysts do not expect Natera to be profitable this year, aligning with the negative P/E ratio.
These insights, coupled with the fact that the company's shares are trading near their 52-week high, could provide valuable context for investors considering the implications of the CEO's stock sales. Moreover, Natera's strong return over the last three months, with a price total return of 46.01%, may reflect market confidence in the company's trajectory.
For those looking to delve deeper into Natera's financials and market position, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available, which can be found at https://www.investing.com/pro/NTRA. For those interested, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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