In a recent transaction, Sheena Jonathan, co-founder of Natera, Inc. (NASDAQ:NTRA), a leader in personalized genetic testing and diagnostics, sold a significant number of shares in the company. On April 3, 2024, Jonathan offloaded a total of 26,700 shares, resulting in a collective sale of over $2.46 million.
The sales were conducted in multiple transactions, with prices ranging from $91.09 to $93.82 per share. Specifically, the transactions occurred at weighted average prices of $91.5282, $92.5703, and $93.3664 per share for different batches of the stock sold.
Following the transactions, Jonathan still holds a substantial number of shares directly and indirectly. Directly, the post-sale holdings are reported to be 321,031 shares. Additionally, there are holdings of 69,582 shares each in the Caraluna 1 Trust and Caraluna 2 Trust, which are held for the benefit of Jonathan's minor children.
The sales were executed in accordance with a Rule 10b5-1 trading plan, which was adopted by Jonathan on December 12, 2023. This plan allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, to avoid accusations of insider trading.
Investors often scrutinize insider transactions for hints about a company's financial health and future prospects. However, it's important to note that insider sales can be motivated by a variety of personal financial needs or portfolio diversification goals and not necessarily reflect a negative outlook on the company.
Natera has not commented on the transactions, and the sales were disclosed in a standard filing with the Securities and Exchange Commission. Jonathan's remaining stake in the company represents a continued vested interest in Natera's success and growth.
InvestingPro Insights
As the co-founder of Natera, Inc. (NASDAQ:NTRA) capitalizes on the company's stock, investors and potential shareholders might be keen to understand the financial landscape of Natera as indicated by real-time data from InvestingPro. Despite the recent insider sale, Natera's market cap remains robust at $11.15 billion, showcasing the company's significant scale in the personalized genetic testing market.
Investors looking at the company's valuation metrics will observe a Price/Earnings (P/E) ratio of -24.74, which aligns with the adjusted P/E ratio for the last twelve months as of Q4 2023, sitting at -25.65. This negative P/E ratio signals that Natera is not currently profitable, a sentiment echoed by one of the InvestingPro Tips that analysts do not anticipate the company will be profitable this year. However, the company's revenue has grown impressively, with a 31.99% increase over the last twelve months as of Q4 2023, and an even more striking quarterly revenue growth of 43.2% in Q1 2023, reflecting a strong market demand for its products and services.
Two InvestingPro Tips that stand out in relation to the article are the high return over the last year and the fact that the company is trading near its 52-week high, with the stock price reaching 95.41% of this peak. This could provide context to the timing of Sheena Jonathan's stock sale, as it may represent a strategic decision to sell when the share price is strong. Additionally, with a total of 13 additional InvestingPro Tips available, investors can gain more in-depth insights by visiting https://www.investing.com/pro/NTRA and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Overall, Natera's financial data and the InvestingPro Tips suggest a company experiencing significant growth in revenue, albeit without current profitability. The insider sale, while noteworthy, may not necessarily reflect the company's potential but rather a personal financial strategy, especially when considering the company's recent performance and market position.
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