Natera (NASDAQ:NTRA) Downgraded to Sell by StockNews.com

Natera (NASDAQ:NTRA) has received a downgrade from equities researchers at StockNews.com, who lowered the company’s rating from "hold" to "sell" in a report released on Monday.

Analyst Ratings Overview

In addition to StockNews.com's report, several other brokerages have recently provided their perspectives on Natera. For instance, TD Cowen raised its price target for the company from $155.00 to $175.00, maintaining a "buy" rating as of November 13. Similarly, Guggenheim increased its price target from $170.00 to $200.00, also issuing a "buy" rating on January 17. Craig Hallum adjusted its price objective for the stock from $121.00 to $157.00, holding a "buy" stance in its research note issued on November 13. Barclays began coverage of Natera on January 23, giving it an "overweight" rating alongside a price target of $200.00. Lastly, Piper Sandler boosted its price target from $150.00 to $200.00 and maintained an "overweight" rating in their report from November 18. Currently, one research analyst has assigned a "sell" rating, while sixteen others have given it a "buy" rating. According to MarketBeat.com, the average rating stands at "Moderate Buy" with a consensus target price of $172.69.

Natera Stock Performance

On the trading floor, Natera's shares saw a decline, dropping $12.48 to $143.11 during mid-day trading on Monday. The trading volume for NTRA was reported at 2,862,669 shares, significantly higher than its average volume of 1,314,816 shares. The company's market capitalization is $18.89 billion, with a price-to-earnings ratio of -81.31 and a beta of 1.66. Financial indicators show a current ratio of 4.39, a quick ratio of 4.23, and a debt-to-equity ratio of 0.33. Over the past year, Natera's stock has fluctuated between a low of $83.13 and a high of $183.00, with current fifty-day and two-hundred-day moving averages at $167.44 and $147.35, respectively.

Earnings Report Insights

Natera reported its latest earnings results on February 27, where it registered earnings per share (EPS) of ($0.41), narrowly surpassing the consensus estimate of ($0.42). The company's revenue for the quarter reached $476.10 million, exceeding predictions of $447.91 million. Natera's return on equity was negative at -26.23%, with a net margin of -14.01%. Analysts forecast that the company will report an EPS of -1.49 for the current fiscal year.

Insider Activity

In other developments, insider John Fesko sold 663 shares of Natera on February 6 at an average price of $177.77, totaling around $117,861.51. Following this transaction, Fesko holds 156,044 shares valued at approximately $27,739,941.88. Additionally, CEO Steven Leonard Chapman sold 78,553 shares on January 22 at an average price of $164.97 for about $12,958,888.41. Post-transaction, Chapman owns 267,629 shares valued at around $44,150,756.13. This transaction indicates a 22.69% decrease in his ownership in the company. Insider sales for the past three months have amounted to 208,299 shares, totaling $34,948,265, with insiders currently owning 7.60% of total shares.

Institutional Holdings of Natera

Recent changes in hedge fund holdings reflect a growing interest in Natera. For example, Principal Securities Inc. increased its holdings by 20.7% in the last quarter, now owning 344 shares valued at $54,000. Similarly, Gladstone Institutional Advisory LLC raised its holdings by 1.7%, reaching 3,629 shares worth $574,000. Silver Oak Securities Incorporated also increased its position in Natera by 3.1%, owning 2,963 shares valued at $470,000. Covestor Ltd upped its stake by 34.3% and now holds 372 shares valued at $47,000. Lastly, Colonial Trust Co SC increased its stake by 7.8%, now owning 1,325 shares worth $210,000. A remarkable 99.90% of Natera stock is held by institutional investors and hedge funds.

About Natera

Natera, Inc. is a diagnostics company known for developing and commercializing molecular testing services across the globe. Their offerings include Panorama, a non-invasive prenatal test for fetal chromosomal abnormalities, and Horizon, a carrier screening test for genetic conditions. Other products include Vistara for single-gene disorders, Spectrum for preimplantation genetic testing, and Anora for miscarriage tissue analysis. Natera also offers Empower, a hereditary cancer screening test, and a non-invasive prenatal paternity product.

Natera, Stocks, Analysis