Natera Hits 12-Month High as Analysts Boost Price Targets

Natera, Inc. achieved a new 52-week high during trading on November 7, 2023, reaching a peak of $236.74 before closing at $234.47. The stock experienced a surge in volume, with 645,520 shares traded, marking a notable increase from its previous closing price of $230.63. This upward momentum comes as a number of financial analysts released optimistic reports regarding the company’s growth potential.

Analysts Project Significant Growth

Several research firms have recently revised their price targets for Natera. Canaccord Genuity Group raised its price objective from $200.00 to $250.00, giving the company a “buy” rating in its report. Similarly, Piper Sandler increased its target from $220.00 to $230.00 and maintained an “overweight” rating. BTIG Research also upgraded its target price from $210.00 to $230.00 while keeping a “buy” rating intact.

Additionally, BNP Paribas Exane adjusted its rating from “underperform” to “neutral,” setting a price target of $172.00. Morgan Stanley followed suit, raising its price objective from $195.00 to $220.00, maintaining an “overweight” rating. Overall, fifteen analysts currently rate Natera as a “buy,” three as a “hold,” and two as a “sell,” leading to a consensus rating of “Moderate Buy” and a target price of $220.88, according to MarketBeat.

Recent Earnings Report Shows Mixed Results

On the same day the stock hit its peak, Natera also reported its earnings for the third quarter. The company posted an earnings per share (EPS) of ($0.64), falling short of the consensus estimate of ($0.39) by $0.25. Despite this, Natera reported revenue of $592.18 million, exceeding expectations of $514.55 million and reflecting a year-over-year revenue increase of 34.7%.

The company’s financial health showed challenges, with a negative return on equity of 25.07% and a net margin of 14.61%. Analysts project that Natera will finish the current year with an EPS of ($1.49).

Insider Trading Activity

Insider transactions have also been notable. Chief Financial Officer Michael Burkes Brophy sold 1,867 shares on October 29 at an average price of $190.64, totaling approximately $355,924.88. Post-transaction, Brophy retains 64,126 shares, valued at about $12,224,980.64, indicating a 2.83% reduction in his holdings.

Additionally, insider Solomon Moshkevich sold 3,000 shares on November 3 at an average price of $198.60, amounting to $595,800.00. Moshkevich now owns 112,061 shares, valued at approximately $22,255,314.60, representing a 2.61% decrease in ownership. Over the last 90 days, insiders have sold a total of 311,116 shares valued at around $63,509,290, while insiders currently hold 5.63% of the company’s equity.

Institutional Investment Trends

Recent changes in institutional investments indicate growing interest in Natera. Bank of Jackson Hole Trust acquired a new position valued at approximately $29,000 in the first quarter. Horizon Investments LLC also entered the market during the third quarter with a stake worth about $32,000.

TCTC Holdings LLC increased its stake by 114.8% and now holds 232 shares valued at $33,000. Northwestern Mutual Wealth Management Co. similarly raised its holdings by 83.5%, acquiring an additional 106 shares. Furthermore, Hilltop National Bank purchased a new stake in Natera valued at around $33,000 during the second quarter. Notably, institutional investors now own 99.90% of Natera’s stock.

Natera, Inc. specializes in developing and commercializing molecular testing services internationally, offering a range of diagnostic products. These include the Panorama prenatal test, the Horizon carrier screening test, and the Empower hereditary cancer screening test, among others. As the company continues to innovate in the diagnostics sector, market analysts will closely monitor its performance and the impact of recent developments on its stock price.