In a recent transaction, Sheena Jonathan, co-founder of Natera, Inc. (NASDAQ:NTRA), a leader in personalized genetic testing and diagnostics, sold a total of $89,550 worth of company stock. The transaction took place on April 25, 2024, and was executed at a uniform price of $89.55 per share.
The sale was conducted through two separate trusts named Caraluna 1 Trust and Caraluna 2 Trust, both holding the stock indirectly for the benefit of Jonathan's minor children. According to the filing, Jonathan disclaims beneficial ownership of these shares. It is important to note that the sale was carried out in accordance with a Rule 10b5-1 trading plan, which was adopted on March 13, 2023.
Following the sale, Jonathan's remaining direct holdings in Natera stock amount to 321,364 shares. The execution of this sale under a pre-arranged trading plan allows insiders to sell their shares at predetermined times to avoid any accusations of trading on non-public, material information.
Investors monitoring insider transactions often pay close attention to such sales as they provide insights into an insider’s perspective on the value of the company stock. However, it's also common for insiders to sell stock for personal financial management reasons that do not necessarily indicate a lack of confidence in the company's future prospects.
Natera has been at the forefront of genetic testing, offering products that range from non-invasive prenatal tests to cancer screenings. The company's stock performance is closely watched by investors interested in the healthcare and biotechnology sectors.
InvestingPro Insights
In light of the recent insider sale, investors may look to broader company metrics and performance indicators to gauge Natera Inc 's standing in the market. According to InvestingPro data, Natera boasts a robust revenue growth, with a 31.99% increase in the last twelve months as of Q4 2023, and an even more impressive quarterly revenue growth of 43.2% in Q1 2023. This suggests a strong upward trajectory in the company's financial performance.
Despite not being profitable over the last twelve months, with a P/E ratio of -24.25 and an adjusted P/E ratio of -25.77, the company's stock has experienced significant gains. The one-year price total return stands at an impressive 82.48%, and the stock is trading near its 52-week high at 92.75% of that value. This aligns with the InvestingPro Tips that highlight Natera's strong return over the last year and its large price uptick over the last six months.
For investors considering the liquidity and debt aspects of Natera, the company operates with a moderate level of debt and has liquid assets that exceed its short-term obligations. These factors can provide some reassurance about the company's ability to meet its financial commitments in the near term. For those interested in a deeper dive into the company's financials and future outlook, there are additional InvestingPro Tips available, offering insights such as the company's trading at a high Price / Book multiple of 14.64, and its potential for long-term returns.
Investors looking to capitalize on these insights and more can explore the full range of InvestingPro Tips for Natera Inc at https://www.investing.com/pro/NTRA and can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.