In a recent transaction, Sheena Jonathan, co-founder of Natera, Inc. (NASDAQ:NTRA), a leader in medical laboratory services, sold a number of shares in the company. The sales took place on May 23, 2024, and were reported in a filing with the Securities and Exchange Commission.
The transactions involved the sale of shares held indirectly through trusts, specifically the Caraluna 1 Trust and Caraluna 2 Trust, which are for the benefit of Jonathan's minor children. Sheena Jonathan disclaims beneficial ownership of these shares, indicating that they are not directly under her control.
The sales were executed under a Rule 10b5-1 trading plan, a mechanism that allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own. This plan was adopted on March 13, 2023, and allows for trades to be made on behalf of the reporting person at predetermined times and prices, providing an affirmative defense against charges of insider trading.
In total, Jonathan sold shares worth approximately $108,300. These sales were made in multiple transactions, with prices ranging from $107.765 to $109.1586 per share. The specific number of shares sold at each price point within this range is available upon written request, as noted in the footnotes of the SEC filing.
Following the sales, the remaining shares owned by the trusts are 68,738 and 68,582 for Caraluna 1 Trust and Caraluna 2 Trust, respectively. Additionally, the SEC filing reveals that Sheena Jonathan still holds 307,208 shares of Natera directly.
Investors often monitor insider sales as they can provide insights into an insider’s view of the company's value. However, it's important to note that there can be various reasons for an insider to sell shares, and such transactions do not necessarily indicate a lack of confidence in the company's future prospects.
InvestingPro Insights
As Natera, Inc. (NASDAQ:NTRA) continues to navigate the complex landscape of medical laboratory services, recent insider transactions have drawn the attention of investors. To provide a deeper understanding of Natera's financial health and market performance, InvestingPro offers a selection of real-time data and expert analysis.
InvestingPro Data highlights Natera's robust revenue growth, with a notable increase of 39.26% in the last twelve months as of Q1 2024. This growth is further underscored by an impressive quarterly revenue growth of 52.11% in Q1 2024. Despite these strong growth metrics, Natera's P/E Ratio stands at -34.95, indicating that the company is not currently profitable. Additionally, the company's Price / Book ratio as of Q1 2024 is 16.93, suggesting a high valuation compared to the book value of its assets.
InvestingPro Tips reveal that analysts have tempered their expectations for Natera, with four analysts revising earnings downwards for the upcoming period. Moreover, they do not anticipate the company will be profitable this year. However, it's worth noting that Natera's liquid assets exceed its short-term obligations, providing a level of financial stability. The company also operates with a moderate level of debt, which may offer some reassurance to investors concerned about financial leverage.
For those interested in further insights, InvestingPro provides an additional 12 tips on Natera, which could be particularly valuable for investors seeking a comprehensive view of the company's performance and outlook. To explore these tips and more detailed analyses, visit https://www.investing.com/pro/NTRA and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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