Natera CFO sells over $246k in company stock
Michael Burkes, the Chief Financial Officer of Natera, Inc. (NASDAQ:), a leader in personalized genetic testing and diagnostics, has recently sold shares of the company stock, according to a new SEC filing. Over a span of three days, Burkes sold a total of 2,359 shares, resulting in proceeds of over $246,000.
The transactions took place on July 24, July 25, and July 26, with the prices per share ranging between $102.18 and $105.53. The sales were executed under a prearranged Rule 10b5-1 trading plan, which allows insiders to sell shares at predetermined times to avoid allegations of trading on non-public information.
On the first day, Burkes sold 918 shares at a price of $105.53 each. The following day, he sold 690 shares at $105.29 per share. The final day saw the sale of 751 shares at a price of $102.18 per share. Following these transactions, the SEC filing indicated that Burkes still owned 75,059 shares of Natera stock.
These transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, which is used to report a change in company insiders’ ownership positions. The sales reported in this Form 4 were made according to a trading plan that Burkes had adopted on March 14, 2023.
Investors often monitor insider buying and selling as it can provide insights into a company’s financial health and future prospects as perceived by its executives. The reported sales by Natera’s CFO may be of interest to current and potential shareholders looking to gauge insider confidence in the company’s performance and outlook.
In other recent news, Natera Inc . has reported significant progress in the genetic testing industry. The company has seen a robust 18% sequential revenue increase and a 52% rise year-over-year in Q1 2024, leading to an upward revision of their revenue guidance for the year. This financial performance has been acknowledged by several analyst firms. Piper Sandler reaffirmed its positive stance on Natera, maintaining an Overweight rating, while Wolfe Research and Jefferies both maintained positive ratings for the company.
Natera has also made strides in debt management, announcing the full redemption of its outstanding 2.25% Convertible Senior Notes due 2027, totaling a principal amount of $287.5 million. In addition, the company has launched the DECIPHER trial for a novel treatment targeting gastroesophageal adenocarcinoma, using its molecular residual disease test, Signatera.
The company is set to present new findings on Signatera at the 2024 American Society of Clinical Oncology Annual Meeting. These developments showcase Natera’s commitment to enhancing personalized genetic testing in oncology. All these are recent developments, providing investors with a glimpse into the company’s recent maneuvers in the industry.
InvestingPro Insights
As investors digest the news of insider sales by Natera, Inc.’s CFO, Michael Burkes, it’s crucial to consider the company’s financial health and market performance to understand the broader context. According to PRONEWS24, which offers up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, here are some InvestingPro Insights that could provide additional clarity:
InvestingPro Data indicates that Natera has a market capitalization of $12.58 billion, signaling a robust size within the genetic testing and diagnostics industry. Despite a negative P/E ratio of -32.93, reflecting that the company is not currently profitable, Natera has experienced significant revenue growth, with a 39.26% increase over the last twelve months as of Q1 2023. This is further highlighted by a quarterly revenue growth of 52.11% in Q1 2023, underscoring the company’s expanding operations.
While analysts do not anticipate Natera will be profitable this year, the company has had a high return over the last year, with a 126.54% one-year price total return as of the provided data date. This could suggest investor optimism about the company’s long-term growth potential. Additionally, Natera’s liquid assets exceed its short-term obligations, which may provide some assurance to investors about the company’s ability to meet its immediate financial liabilities.
InvestingPro Tips for Natera also reveal that the company is trading at a high Price / Book multiple of 15.88, which may indicate the stock is valued richly compared to its book value. Furthermore, Natera does not pay a dividend to shareholders, which is a common characteristic of growth-oriented companies that prefer to reinvest earnings into the business rather than distribute them as dividends.
For those interested in a deeper dive into Natera’s financials and market performance, InvestingPro offers a range of additional tips. There are 9 more InvestingPro Tips available for Natera, which can be accessed through the InvestingPro platform. These insights could be particularly valuable for current and potential shareholders evaluating the company’s prospects in light of the CFO’s recent stock sales.
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