Natera, Inc. (NASDAQ: NTRA) received a “buy” rating from Canaccord Genuity Group, reaffirming its confidence in the company’s performance. In a report released on November 7, 2023, the financial services firm set a target price of $250.00 for Natera’s stock, indicating a potential upside of 3.66% based on the stock’s previous close. This positive outlook is in contrast to mixed sentiments expressed by other analysts in recent reports.
Several research firms have provided varying assessments of Natera’s stock. Zacks Research downgraded the company from a “hold” to a “strong sell” rating on October 20, 2023. In contrast, Wells Fargo & Company raised its price target from $175.00 to $190.00 while maintaining an “equal weight” rating. On the same day, Barclays increased its price objective from $210.00 to $230.00 and assigned an “overweight” rating.
The consensus among analysts is somewhat optimistic, with 15 providing a “buy” rating, three issuing a “hold,” and two giving a “sell” rating. According to MarketBeat.com, Natera currently has a consensus rating of “Moderate Buy” and an average target price of $225.29.
Recent Earnings Report
Natera’s financial performance has been under scrutiny as the company released its latest quarterly earnings on November 7, 2023. The medical research firm reported a loss of ($0.64) earnings per share, which fell short of the consensus estimate of ($0.39) by ($0.25). Revenue for the quarter reached $592.18 million, significantly surpassing analyst predictions of $514.55 million.
Despite the revenue increase of 34.7% year-over-year, Natera faced challenges with a negative net margin of 14.61% and a negative return on equity of 25.07%. Analysts project that Natera will record an earnings per share of ($1.49) for the current fiscal year, indicating continued challenges ahead.
Insider Transactions and Institutional Investments
In related news, Natera’s CEO, Steven Leonard Chapman, sold 160,703 shares on November 3, 2023, at an average price of $199.96, amounting to a total transaction of approximately $32.1 million. Following this transaction, Chapman still holds 144,816 shares, valued at about $28.96 million, representing a significant 52.60% decrease in his ownership.
Additionally, insider Solomon Moshkevich sold 3,000 shares on October 1, 2023, at an average price of $159.99, totaling around $479,970. Despite these sales, insiders collectively own 5.63% of the company, with a total of 307,687 shares sold over the past three months, valued at $63.47 million.
Several institutional investors have also adjusted their holdings in Natera. Hilltop National Bank initiated a new position during the second quarter worth around $33,000, while Horizon Investments LLC acquired shares valued at $32,000 in the third quarter. Notably, 99.90% of Natera’s stock is currently held by institutional investors and hedge funds, reflecting strong institutional interest in the company.
Natera specializes in developing and commercializing molecular testing services that include products like Panorama, a non-invasive prenatal test, and Empower, a hereditary cancer screening test. The company continues to be a significant player in the medical diagnostics sector as it navigates the complexities of market conditions and investor expectations.
