Natera (NASDAQ:NTRA) Shares Gap Down on Disappointing Earnings
by Kim Johansen · The Markets DailyShares of Natera, Inc. (NASDAQ:NTRA – Get Free Report) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $363.76, but opened at $319.99. Natera shares last traded at $320.7670, with a volume of 726,657 shares traded.
The medical research company reported ($0.42) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.28) by ($0.14). Natera had a negative return on equity of 11.38% and a negative net margin of 7.11%. The business had revenue of $793.98 million during the quarter, compared to analyst estimates of $707.54 million. During the same period in the previous year, the business posted ($0.64) earnings per share. The firm’s quarterly revenue was up 34.1% on a year-over-year basis.
More Natera News
Here are the key news stories impacting Natera this week:
- Positive Sentiment: Third-quarter revenue rose 34.1% year over year to $794 million, beating analyst expectations of about $708 million. Natera also raised its FY2026 sales outlook, supporting the company’s growth outlook. Natera Q3 results and outlook
- Positive Sentiment: Medicare coverage for Signatera in hepatocellular carcinoma (HCC) could improve access to the test and support adoption of Natera’s oncology products. Medicare coverage for Signatera in HCC
- Neutral Sentiment: Natera announced a leadership transition. The available report does not specify the transition’s timing or details, leaving its implications for strategy and execution unclear. Natera leadership transition
- Negative Sentiment: The quarterly loss narrowed from a year earlier, but the reported loss per share was worse than analyst expectations. That earnings shortfall likely contributed to the sell-off despite the revenue beat and upgraded sales outlook. Natera Q3 earnings report
Wall Street Analysts Forecast Growth
A number of brokerages recently commented on NTRA. Piper Sandler increased their price target on Natera from $249.00 to $363.50 and gave the company an “overweight” rating in a report on Wednesday, August 12th. Leerink Partners set a $330.00 price objective on shares of Natera in a research note on Friday, August 7th. UBS Group increased their target price on shares of Natera from $290.00 to $435.00 and gave the company a “buy” rating in a research note on Wednesday, September 9th. Barclays boosted their price objective on Natera from $340.00 to $475.00 and gave the stock an “overweight” rating in a report on Wednesday, October 7th. Finally, Zacks Research lowered shares of Natera from a “hold” rating to a “strong sell” rating in a report on Friday, October 16th. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $394.31.
Get Our Latest Stock Analysis on NTRA
Insider Buying and Selling at Natera
In other Natera news, insider John Fesko sold 6,517 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $321.53, for a total transaction of $2,095,411.01. Following the transaction, the insider directly owned 197,257 shares of the company’s stock, valued at $63,424,043.21. This represents a 3.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Steven Chapman sold 3,801 shares of the stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $411.80, for a total transaction of $1,565,251.80. Following the transaction, the chief executive officer directly owned 87,431 shares in the company, valued at $36,004,085.80. The trade was a 4.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 53,573 shares of company stock worth $19,856,400 over the last quarter. Company insiders own 5.05% of the company’s stock.
Institutional Trading of Natera
Several large investors have recently made changes to their positions in the stock. SYM FINANCIAL Corp raised its stake in shares of Natera by 1.7% in the 3rd quarter. SYM FINANCIAL Corp now owns 1,897 shares of the medical research company’s stock valued at $784,000 after acquiring an additional 32 shares in the last quarter. Versant Capital Management Inc lifted its holdings in Natera by 4.6% in the 3rd quarter. Versant Capital Management Inc now owns 815 shares of the medical research company’s stock worth $337,000 after purchasing an additional 36 shares during the last quarter. AlphaCentric Advisors LLC boosted its position in Natera by 3.0% during the third quarter. AlphaCentric Advisors LLC now owns 1,432 shares of the medical research company’s stock worth $592,000 after purchasing an additional 42 shares during the period. VestGen Advisors LLC boosted its position in Natera by 3.1% during the third quarter. VestGen Advisors LLC now owns 1,460 shares of the medical research company’s stock worth $603,000 after purchasing an additional 44 shares during the period. Finally, Parallel Advisors LLC boosted its position in Natera by 5.5% during the first quarter. Parallel Advisors LLC now owns 905 shares of the medical research company’s stock worth $181,000 after purchasing an additional 47 shares during the period. Institutional investors own 99.90% of the company’s stock.
Natera Price Performance
The company has a market cap of $45.55 billion, a price-to-earnings ratio of -232.40 and a beta of 1.55. The firm has a fifty day simple moving average of $380.81 and a 200 day simple moving average of $269.30.
Natera Company Profile
Natera, Inc is a diagnostics company that develops and commercializes molecular testing services designed to provide personalized genetic and genomic information. Its tests are used across reproductive health, oncology and organ transplantation, with the company combining next-generation sequencing and bioinformatics to analyze DNA and monitor disease-related signals.
In reproductive health, Natera offers Panorama noninvasive prenatal screening, Horizon carrier screening and Vistara single-gene disorder screening.