Natera co-founder sells more than $2.8 million in company stock by Investing.com

In a recent transaction, Sheena Jonathan, co-founder of Natera, Inc. (NASDAQ: ), a leader in personalized genetic testing and diagnostics, sold a significant amount of the company’s stock. The sales, which took place on September 18, 2024, totaled more than $2.8 million.

The transactions involved the sale of several blocks of shares at different prices. Prices per share for these transactions ranged from $127.3779 to $128.0748. In detail, the sales were made in several transactions, with the shares being sold at different prices in the given range. The total number of shares sold by Jonathan was not disclosed in one block but occurred through multiple trades as part of prearranged trading plans.

These trading plans, known as Rule 10b5-1 plans, were adopted by Jonathan on different dates, with some plans set as early as March 13, 2023, and others as early as December 12, 2023. Rule 10b5-1 plans allow insiders to the company to sell shares at predetermined times to avoid accusations of insider trading.

It is noteworthy that some of the shares sold were held indirectly by trusts, namely the Caraluna 1 Trust and the Caraluna 2 Trust, for the benefit of Jonathan’s minor children. Jonathan has disclaimed beneficial ownership of these securities, indicating that they are held for the benefit of the children.

The sale represents a significant divestment of the co-founder, but Sheena Jonathan’s remaining holdings in Natera, Inc. are still substantial. Following the sale, the exact number of shares retained by Jonathan directly or indirectly through the trusts is detailed in the SEC filing, but was not provided in this summary.

Investors often monitor insider trading because it can provide insight into an insider’s perspective on the company’s current valuation and future prospects. However, such sales may also be part of the standard financial planning and diversification strategies of company insiders.

Natera, Inc. continues to be a key player in the medical laboratory industry, providing innovative genetic testing solutions. The company’s business address is located in Austin, Texas and it operates under the legal jurisdiction of Delaware.

In other recent news, Natera Inc . has been in the spotlight due to several significant developments. The company reported 12% sequential revenue growth from the first quarter and 58% year-over-year growth, prompting it to raise its full-year revenue guidance to around 1.5 billion of dollars. The gross margin expectation is 55%, accompanied by a record number of test volumes and an increase in average selling prices.

Analysts at Piper Sandler, TD Cowen and Canaccord Genuity maintained positive ratings on Natera shares, citing the potential impact of the new Galaxy study results and the anticipation of the presentation at the European Society for Medical Oncology (ESMO). They pointed to Natera’s significant market lead due to its first-mover advantage, particularly with its cancer test, Signatera.

In other developments, Natera’s Renasight test received an approval from the National Kidney Foundation for chronic kidney disease testing. Despite a delay in filing the ALTAIR study and non-renewal of the Foundation Medicine partnership, the company anticipates steady sequential growth in volumes and revenue, with revenue expected to grow 40% over 2023. These are some of the recent highlights in Natera’s journey.

InvestingPro Insights

Following recent insider trading by Sheena Jonathan, co-founder of Natera, Inc. (NASDAQ:NTRA), investors are closely scrutinizing the company’s financial health and stock performance. According to InvestingPro data, Natera boasts a robust market capitalization of $15.75 billion, reflecting significant investor confidence in the company’s market position and future growth potential.

Despite not being profitable over the past twelve months, Natera has demonstrated impressive revenue growth, with the latest numbers showing growth of 46.13% over the past twelve months through Q2 2024. This growth trajectory is further highlighted by the company’s quarterly revenue growth of 58.13. % in Q2 2024, signaling strong momentum in ongoing business.

An InvestingPro tip points out that analysts have revised upward their earnings expectations for the coming period, which could indicate the potential for continued revenue growth or operational improvements. Moreover, Natera shares have seen a strong return in the past three months, with a total price return of 19.3% and an outstanding return of 170.21% over the past year, showing its robust performance in the stock market.

For investors seeking a more in-depth analysis, additional InvestingPro Tips are available, including information on Natera’s liquidity, debt levels and trading multiples. There are currently 9 more tips listed on InvestingPro that can help investors make more informed decisions about Natera, Inc. These can be found at: https://www.investing.com/pro/NTRA.

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