Natera, Inc. (NASDAQ:NTRA), a leader in personalized genetic testing and diagnostics, reported a recent transaction by Co-Founder Sheena Jonathan, according to a Form 4 filing with the Securities and Exchange Commission. Jonathan sold a total of 947 shares of common stock over multiple transactions dated March 28, 2024. The total value of the shares sold was over $130,000, with individual share prices ranging between $90.13 and $90.4158.
The transactions included the sale of 134 shares at a price of $90.4158, 313 shares and another set of 500 shares both at a price of $90.13. An additional 500 shares were sold, with the proceeds directed to trusts for the benefit of Jonathan's minor children, as noted in the footnotes of the filing. It is important to highlight that these sales were made in accordance with pre-arranged 10b5-1 trading plans, which allow insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information.
In addition to the sales, the filing also indicated that Jonathan acquired 447 shares through the exercise of restricted stock units (RSUs) with a transaction price of $0. This is a common practice wherein RSUs convert to stock, often to meet vesting schedules as outlined in the executive's compensation agreement.
Investors and market watchers often monitor insider transactions for insights into executives' perspectives on their company's performance and value. While sales can sometimes raise concerns about an insider's confidence in the company, it is not uncommon for executives to sell shares for personal financial planning, diversification, or to satisfy tax obligations.
Natera's stock transactions by insiders are closely watched, as they can provide a glimpse into the company's health and future prospects. The company continues to be at the forefront of genetic testing, offering a range of services that include prenatal screening, cancer diagnostics, and organ health testing.
InvestingPro Insights
Natera, Inc. (NASDAQ:NTRA) has been a topic of discussion not just for its insider transactions but also for its financial performance and market valuation. According to recent data from InvestingPro, Natera's market capitalization stands at a robust $11.04 billion, reflecting investor confidence in the company's growth trajectory. Despite the challenges of achieving profitability, as analysts do not expect the company to be profitable this year, Natera has shown a notable revenue growth of 31.99% over the last twelve months as of Q1 2023, with an even more impressive quarterly revenue growth of 43.2% in Q1 2023.
The company's Price / Book ratio is currently at 14.43, which is considered high, suggesting that the market values Natera's assets quite favorably. This is coupled with a strong return over the last three months, as the company's stock price has seen a significant uptick of 46.01%, aligning with the "InvestingPro Tip" that highlights a large price uptick over the last six months at 106.69%.
While Natera operates with a moderate level of debt and its liquid assets exceed short-term obligations, it is also important to note that the company has not been profitable over the last twelve months. This is reflected in the negative P/E ratio of -24.17, which is adjusted to -25.4 for the last twelve months as of Q1 2023. Nonetheless, the company's stock is trading near its 52-week high, with a price of 95.03% of the 52-week high, signaling strong market sentiment.
For those interested in a deeper dive into Natera's performance and future prospects, there are 6 additional "InvestingPro Tips" available on the InvestingPro platform, which can be accessed at https://www.investing.com/pro/NTRA. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and gain access to a wealth of financial data and expert analysis to guide your investment decisions.
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