Natera, Inc. (NASDAQ:NTRA) co-founder Sheena Jonathan recently sold a significant amount of company stock, according to a new SEC filing. The transactions, which took place on March 28, 2024, involved the sale of 947 shares of Natera's common stock at prices ranging from $90.13 to $90.4158, resulting in a total value of approximately $130,456.
The sales were executed under pre-arranged trading plans, known as Rule 10b5-1 plans, which allow company insiders to sell shares at predetermined times to avoid concerns about insider trading. Specifically, 134 shares were sold to cover tax withholding obligations related to the vesting of restricted stock units (RSUs), as stated in a footnote in the SEC filing. The remaining shares were sold through different 10b5-1 trading plans adopted by Jonathan in December 2022 and March 2023.
It's noteworthy that some of the shares sold were indirectly held by trusts for the benefit of Jonathan's minor children, as indicated by the footnotes. Jonathan disclaims beneficial ownership of these shares.
Additionally, on March 27, 2024, Jonathan acquired 447 shares through the vesting of RSUs, which represent a contingent right to receive shares of the issuer's common stock. These shares were acquired at no cost, as they are part of an equity compensation plan where 25% of the RSUs vested on March 27, 2021, with the remaining shares vesting in equal quarterly installments.
Investors often track insider transactions as they can provide insights into executives' perspectives on the company's future performance. However, it's important to consider that there could be various reasons for an insider to sell stock, and such transactions don't necessarily signal a lack of confidence in the company.
InvestingPro Insights
As Natera, Inc. (NASDAQ:NTRA) experiences notable insider transactions, investors are keen to understand the company's financial health and future prospects. According to InvestingPro data, Natera currently holds a market capitalization of $11.23 billion. Despite the company's significant revenue growth, with a 31.99% increase over the last twelve months as of Q1 2023, analysts remain cautious. InvestingPro Tips highlight that analysts have not only revised their earnings upwards for the upcoming period but also indicate that Natera is not expected to be profitable this year.
Furthermore, the stock's performance has been strong, with a 67.44% return over the past year, and it's currently trading near its 52-week high, at 96.59% of the peak price. This robust performance is also reflected in the short term, with a 48.4% year-to-date price total return. However, the company operates with a negative P/E ratio of -24.54, which suggests that investors are paying for earnings that are not currently realized.
An InvestingPro Tip also points out that the stock's RSI suggests it is in overbought territory, which could indicate a potential pullback in the near future. For investors seeking a deeper dive into Natera's financial metrics and additional insights, there are 13 more InvestingPro Tips available, which can be accessed with a subscription. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain comprehensive insights to make informed investment decisions.
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