Natera Co-Founder Sells Over $2.8 Million in Company Stock

In a recent development, Sheena Jonathan, Co-Founder of Natera, Inc., executed a substantial sale of company stock amounting to over $2.8 million on September 18, 2024. The transactions involved multiple blocks of shares sold at varying prices, with each share priced between $127.3779 and $128.0748. The total number of shares sold was not disclosed in a single block but was part of several transactions executed according to pre-arranged trading plans.

These trading plans, known as Rule 10b5-1 plans, were initiated by Jonathan on different dates, including some established as early as March 13, 2023, and others on December 12, 2023. This legal framework allows corporate insiders to sell shares at predetermined times to mitigate the risk of insider trading claims.

Some of the shares sold by Jonathan were indirectly held through trusts for the benefit of her minor children. Jonathan has stated that she disclaims beneficial ownership of these securities, indicating they are held for the children.

While this sale signifies a notable divestment by Jonathan, she continues to hold a substantial amount of Natera stock. The exact number of shares retained by her, directly or through trusts, was detailed in a SEC filing but is not specified here.

Investors typically monitor insider transactions to gain insights into a company’s valuation and future prospects. Such sales, however, can also be part of normal financial planning and diversification strategies.

Natera, Inc. remains a key player in the medical laboratories sector, known for its innovative genetic testing solutions. The company is based in Austin, Texas, and operates under Delaware law.

In further news about Natera, the company recently reported a 12% sequential revenue increase from the first quarter and a 58% year-over-year surge, leading to a revision of its full-year revenue guidance to approximately $1.5 billion. The company expects a gross margin of 55%, accompanied by record test volumes and increased average selling prices.

Analysts from various firms have maintained positive ratings on Natera’s shares, citing significant potential stemming from new study results and upcoming presentations at major conferences. Their outlook is bolstered by Natera’s first-mover advantages, especially with its cancer test, Signatera.

Additionally, Natera’s Renasight test has received endorsement from the National Kidney Foundation for chronic kidney disease testing. Despite some recent setbacks, such as a delay in study submissions, the company is projecting steady growth in volumes and revenue, anticipating a 40% revenue increase compared to 2023.

Following the insider transactions by Sheena Jonathan, investors are attentively evaluating Natera’s financial health and stock performance. The company’s market capitalisation currently stands at $15.75 billion, reflecting strong investor confidence.

Although Natera has yet to achieve profitability in the last year, its revenue growth has been impressive, posting a 46.13% increase over the past twelve months and a 58.13% growth quarter-on-quarter as of Q2 2024. Analysts are optimistic about future earnings, which may suggest continued revenue growth or operational improvements. Natera’s stock has shown a strong return over the last three months, with a 19.3% total return and a remarkable 170.21% return over the past year, indicating robust market performance.

For investors looking for more detailed analysis, further insights regarding Natera’s liquidity, debt levels, and trading multiples are available to assist in making informed decisions.