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AUSTIN, Texas—Steven Chapman, the CEO and President of Natera, Inc. (NASDAQ:NTRA), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Chapman offloaded a total of 87,272 shares of Natera common stock on March 5, 2025. The sales were conducted at prices ranging from $141.91 to $145.42 per share, resulting in a total transaction value of approximately $12.5 million. The sale comes as the stock has delivered an impressive 57.94% return over the past year, according to InvestingPro data, though recent analysis suggests the stock may be overvalued at current levels.
Following these transactions, Chapman retains ownership of 203,354 shares of Natera stock. The sales were executed under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid potential accusations of insider trading. InvestingPro subscribers can access detailed insider trading patterns and 13 additional key insights about NTRA’s performance and valuation.
Natera, headquartered in Austin, Texas, is a leader in medical laboratory services, specializing in genetic testing and diagnostics. The company, now valued at $19.06 billion, has demonstrated strong revenue growth of 56.75% over the last twelve months, while maintaining a healthy gross profit margin of 60.3%.
In other recent news, Natera has reported its fourth-quarter 2024 earnings, which exceeded Wall Street expectations with a narrower-than-anticipated loss per share and higher revenue. The company posted an actual EPS of -$0.41, surpassing the forecasted -$0.49, and reported revenue of $476 million, significantly above the predicted $409.89 million. This marks a 53% year-over-year increase in revenue, driven by strong demand for its products and advancements in molecular diagnostics. Additionally, Natera achieved positive operating cash flows for the fourth consecutive quarter, generating $46 million in cash flow during the quarter.
Analysts from Canaccord Genuity have maintained their Buy rating on Natera, raising the price target from $180 to $195, following the company’s strong fourth-quarter results. The firm expressed optimism about Natera’s future, citing expectations for continued strong gross margins and positive cash flow, as well as potential benefits from improved Medicare Advantage rates and biomarker legislation anticipated in 2025. Similarly, TD Cowen reaffirmed their Buy rating on Natera, with a price target of $195, highlighting the company’s compelling 2025 sales guidance and robust growth levers.
Natera’s strategic operational expenditures, particularly in sales and marketing, are seen as a conscious choice to fuel growth, with gross margin percentage guidance exceeding expectations. The company’s 2025 revenue guidance is set between $1.87 billion and $1.95 billion, indicating a 24% growth at the midpoint. These developments reflect a positive outlook for Natera, supported by its strong financial performance and strategic growth initiatives.
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