Natera (NASDAQ:NTRA) Shares Gap Up After Better-Than-Expected Earnings

Natera, Inc. (NASDAQ:NTRA) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $41.34, but opened at $47.50. Natera shares last traded at $47.04, with a volume of 472,257 shares changing hands.

The medical research company reported ($0.95) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.96) by $0.01. Natera had a negative net margin of 54.97% and a negative return on equity of 88.47%. The firm had revenue of $268.30 million for the quarter, compared to analyst estimates of $259.27 million. During the same period in the prior year, the firm posted ($1.25) earnings per share. The company’s quarterly revenue was up 27.4% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several analysts have issued reports on NTRA shares. StockNews.com started coverage on shares of Natera in a research report on Thursday, October 5th. They set a “sell” rating on the stock. Morgan Stanley decreased their price objective on shares of Natera from $72.00 to $70.00 and set an “overweight” rating on the stock in a report on Monday, August 7th. UBS Group decreased their price objective on shares of Natera from $76.00 to $70.00 and set a “buy” rating on the stock in a report on Thursday. Sanford C. Bernstein assumed coverage on shares of Natera in a report on Thursday, September 28th. They issued a “market perform” rating and a $48.00 price objective on the stock. Finally, The Goldman Sachs Group decreased their price objective on shares of Natera from $60.00 to $52.00 and set a “buy” rating on the stock in a report on Friday, October 20th. One investment analyst has rated the stock with a sell rating, one has given a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $64.56.

Insider Activity at Natera

In related news, insider Jonathan Sheena sold 5,000 shares of the company’s stock in a transaction dated Thursday, November 2nd. The shares were sold at an average price of $40.23, for a total value of $201,150.00. Following the transaction, the insider now directly owns 479,743 shares in the company, valued at $19,300,060.89. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, insider Jonathan Sheena sold 5,000 shares of the company’s stock in a transaction dated Thursday, November 2nd. The shares were sold at an average price of $40.23, for a total value of $201,150.00. Following the transaction, the insider now directly owns 479,743 shares in the company, valued at $19,300,060.89. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Michael Burkes Brophy sold 1,372 shares of the company’s stock in a transaction dated Friday, September 29th. The shares were sold at an average price of $45.98, for a total transaction of $63,084.56. Following the completion of the transaction, the chief financial officer now owns 64,833 shares in the company, valued at $2,981,021.34. The disclosure for this sale can be found here. Over the last three months, insiders have sold 31,591 shares of company stock worth $1,590,587. Corporate insiders own 9.42% of the company’s stock.

Institutional Investors Weigh In On Natera

Several institutional investors and hedge funds have recently bought and sold shares of NTRA. Norges Bank bought a new stake in Natera during the fourth quarter worth about $111,690,000. Frontier Capital Management Co. LLC lifted its position in Natera by 473.1% during the first quarter. Frontier Capital Management Co. LLC now owns 1,478,248 shares of the medical research company’s stock worth $82,072,000 after purchasing an additional 1,220,298 shares during the period. Alliancebernstein L.P. lifted its position in Natera by 2,280.5% during the fourth quarter. Alliancebernstein L.P. now owns 1,202,382 shares of the medical research company’s stock worth $48,300,000 after purchasing an additional 1,151,873 shares during the period. State Street Corp lifted its position in Natera by 54.8% during the first quarter. State Street Corp now owns 2,832,266 shares of the medical research company’s stock worth $115,217,000 after purchasing an additional 1,002,444 shares during the period. Finally, Perceptive Advisors LLC lifted its position in Natera by 444.0% during the first quarter. Perceptive Advisors LLC now owns 707,214 shares of the medical research company’s stock worth $39,265,000 after purchasing an additional 577,214 shares during the period. Institutional investors own 92.59% of the company’s stock.

Natera Price Performance

The company’s 50-day moving average is $46.07 and its two-hundred day moving average is $49.06. The company has a debt-to-equity ratio of 0.47, a current ratio of 3.85 and a quick ratio of 3.69. The firm has a market cap of $5.20 billion, a P/E ratio of -9.42 and a beta of 1.18.

About Natera

Natera, Inc, a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born.