Natera, Inc. (NASDAQ:) co-founder Sheena Jonathan has recently sold a significant portion of her stock in the company, according to the latest SEC filings. The transactions, which took place on October 1, 2024, involved the sale of shares at prices ranging from $124.8244 to $126.4206, amounting to a total of over $716,000.
The sales were executed under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information. This kind of plan is often used by corporate executives and directors to avoid accusations of insider trading.
Jonathan, who is listed as a director and co-founder of Natera, sold shares in multiple transactions, with weighted average prices provided for each set of transactions. The sales were made through direct ownership, as well as indirectly through trusts named Caraluna 1 Trust and Caraluna 2 Trust, which are held for the benefit of Jonathan’s minor children. Jonathan has disclaimed beneficial ownership over the securities held in these trusts.
The transactions reflect a considerable change in Jonathan’s holdings in the company, yet the filings did not reveal the exact reasons behind the sales. Investors often monitor insider transactions as they can provide insights into an executive’s confidence in the company’s future performance.
Natera, Inc., headquartered in Austin, Texas, is a leader in the field of genetic testing and diagnostics, with a focus on the development of non-invasive methods for the detection of various medical conditions.
The SEC filing was signed on behalf of Sheena Jonathan by Tami Chen, Attorney-in-Fact, on October 3, 2024. As per the documents, full information regarding the number of shares sold at each separate price within the reported range can be provided upon written request.
In other recent news, Natera, Inc., a leader in personalized genetic testing, has seen a string of notable developments. A significant legal victory came as the District Court for the Middle District of North Carolina granted a permanent injunction against NeoGenomics (NASDAQ:)’ RaDaR assay, which Natera claims infringes on its ‘454 patent. This development is a part of Natera’s ongoing efforts to protect its intellectual property rights within the genetic testing market.
In terms of financial performance, Natera reported a 12% sequential revenue increase from the first quarter and a 58% surge year-over-year. The company is projecting a 40% revenue growth compared to 2023.
Analyst firms Piper Sandler, TD Cowen, and Canaccord Genuity have maintained positive stances on Natera, reiterating their price targets and Buy ratings. These ratings are based on the forthcoming Galaxy study results and Natera’s presentation at the European Society for Medical Oncology (ESMO) conference.
Furthermore, Natera’s Signatera test is poised to shift oncological discussions by providing insights on overall survival and disease-free survival. Lastly, Natera’s Renasight test received an endorsement from the National Kidney Foundation for chronic kidney disease testing.
InvestingPro Insights
Natera’s recent stock performance and financial metrics provide additional context to Sheena Jonathan’s decision to sell shares. According to InvestingPro data, Natera’s stock has shown remarkable strength, with a 192.63% price total return over the past year and a 101.63% return year-to-date. The stock is currently trading near its 52-week high, with the price at 95.67% of its peak.
Despite the strong stock performance, InvestingPro Tips indicate that Natera is not expected to be profitable this year, and the company was not profitable over the last twelve months. This is reflected in the negative P/E ratio of -53.47 for the last twelve months as of Q2 2024. However, the company’s revenue growth remains robust, with a 46.13% increase over the same period.
It’s worth noting that 9 analysts have revised their earnings upwards for the upcoming period, which could signal positive expectations for the company’s future performance. Additionally, Natera operates with a moderate level of debt and its liquid assets exceed short-term obligations, potentially providing financial stability.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Natera, which could provide further insights into the company’s financial health and market position.
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