Steven Leonard Chapman, the CEO and President of Natera, Inc. (NASDAQ:NTRA), has recently sold a significant portion of his common stock holdings in the company. According to a recent SEC filing, Chapman sold a total of 4,728 shares on November 15, 2024. The transactions were executed at prices ranging from $144.44 to $150.00 per share, amounting to a total value of approximately $692,209.
These sales were conducted under a Rule 10b5-1 trading plan, which Chapman adopted on December 11, 2023. Following these transactions, Chapman retains ownership of 185,034 shares in Natera. The company's shares are traded on the NASDAQ under the ticker symbol NTRA.
In other recent news, Natera Inc (NASDAQ:NTRA). has reported record Q3 revenue of $439.8 million, a 64% increase year-over-year. The company's gross margins reached a record 62%, and it generated a cash flow of $34.5 million. Based on these strong financial results, Natera has revised its full-year revenue guidance upwards to between $1.61 billion and $1.64 billion.
Natera's oncology test volumes also saw a significant increase, with 137,000 tests performed, a 54% increase from the previous year. The Signatera test, Natera's largest revenue-contributing product, showed promising results in predicting overall survival and chemotherapy benefits in colorectal cancer.
In response to these developments, TD Cowen, Baird, and Jefferies have all expressed confidence in Natera's operational success and continued growth. TD Cowen raised its price target to $175, Baird to $160, and Jefferies to $182. All three firms maintained a positive rating on the company's stock.
InvestingPro Insights
Natera, Inc. (NASDAQ:NTRA) has been experiencing significant market momentum, as evidenced by recent InvestingPro data. The company's stock has shown remarkable performance, with a 176.58% total return over the past year and a 133.17% return year-to-date. This upward trajectory aligns with CEO Steven Leonard Chapman's recent stock sale, potentially indicating a strategic decision to capitalize on the company's strong market position.
Despite the positive stock performance, InvestingPro Tips highlight that Natera operates with a moderate level of debt and is not currently profitable. The company's Price to Book ratio stands at a high 21.95, suggesting investors are placing a premium on the company's future growth prospects. This valuation metric is particularly relevant in light of Chapman's stock sale, as it may indicate that the market has priced in substantial growth expectations.
InvestingPro Tips also reveal that six analysts have revised their earnings upwards for the upcoming period, which could be a positive signal for the company's near-term financial performance. However, it's worth noting that analysts do not anticipate the company will be profitable this year, underscoring the importance of monitoring Natera's progress towards profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Natera, providing a deeper understanding of the company's financial health and market position.
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