Matthew Rabinowitz, Executive Chairman of Natera, Inc. (NASDAQ:NTRA), recently sold shares worth approximately $665,375, according to a recent SEC filing. The transactions, which took place on November 25 and 26, involved the sale of common stock at prices ranging from $163.25 to $169.94 per share.
The sales were part of a pre-arranged trading plan under Rule 10b5-1, designed to allow insiders to sell a predetermined number of shares at a predetermined time. Following these transactions, Rabinowitz holds 2,480,684 shares directly, while indirectly, through his spouse, he retains ownership of 84,000 shares.
In other recent news, Natera Inc (NASDAQ:NTRA). faced a setback in a false advertising lawsuit with Guardant Health (NASDAQ:GH), despite this, the company maintains that the validity of its Signatera test was not questioned. In financial developments, Natera reported record Q3 revenue of $439.8 million, a 64% increase year-over-year, with a significant rise in oncology test volumes. Analyst firms TD (TSX:TD) Cowen, Baird, and Jefferies have all maintained favorable ratings on Natera's stock and raised their price targets, reflecting confidence in the company's operational success and continued growth. The Signatera test, Natera's largest revenue-contributing product, showed promising results in predicting overall survival and chemotherapy benefits in colorectal cancer. Despite challenges with private payers and potential holiday-related disruptions in Q4, Natera sees significant growth opportunities ahead with over 100 trials underway. These are the recent developments for Natera Inc.
InvestingPro Insights
As Matthew Rabinowitz, Executive Chairman of Natera, Inc. (NASDAQ:NTRA), executes a planned sale of shares, investors may find additional context in recent market data and analyst perspectives. According to InvestingPro, Natera's stock has shown remarkable performance, with a 206.22% price total return over the past year and a 168.92% return year-to-date. This strong momentum is reflected in the stock trading near its 52-week high, with the current price at 97.96% of that peak.
The company's financial metrics reveal a mixed picture. While Natera boasts impressive revenue growth of 54.94% over the last twelve months, with Q3 2024 showing a 63.9% quarterly increase, profitability remains a challenge. An InvestingPro Tip notes that analysts do not anticipate the company will be profitable this year, which is consistent with the reported operating income of -$242.09 million for the last twelve months.
Despite the lack of current profitability, investor enthusiasm for Natera's potential is evident in its market valuation. The company's market capitalization stands at $22.22 billion, with a price-to-book ratio of 25.31, indicating a premium valuation compared to its book value. This high multiple suggests that investors are pricing in significant future growth prospects.
For those seeking a deeper understanding of Natera's financial health and market position, InvestingPro offers 14 additional tips, providing a comprehensive analysis to inform investment decisions.
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