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Natera, Inc. (NASDAQ:) CEO and President Steven Leonard Chapman made significant stock transactions on March 15, 2024, as disclosed in recent filings. The transaction included both the acquisition and disposal of stock in a medical testing service provider.
Mr. Chapman exercised his options to acquire a total of 68,270 common shares at prices ranging from $13.01 to $25.46, for a total value of approximately $1.32 million. Following these acquisitions, Chapman sold a total of 83,223 shares in multiple transactions. The sale was executed at a weighted average price varying from $87.9648 to $89.6308, for a total gross proceeds of approximately $7.4 million.
Investors often scrutinize insider transactions to learn management's view of a company's stock value. In this case, the CEO's decision to sell a significant number of shares, especially at a price significantly higher than the acquisition cost, may be of interest to current and potential shareholders.
Mr. Chapman's transactions were conducted pursuant to a pre-arranged 10b5-1 trading plan. It is a tool that allows insiders to pre-plan future stock trades and provides an active defense against accusations of trading on non-public information.
Following these transactions, the reporting documents also listed holdings in trusts in which Chapman disclaimed beneficial ownership except to the extent of financial interest. The Rosewood Trust, an irrevocable spending trust, holds his 50,910 shares for the benefit of Chapman and other discretionary beneficiaries.
Headquartered in Austin, Texas, Natera specializes in genetic testing and diagnostics and has seen its stock price fluctuate in response to broader market trends and company-specific news.
For investors, these filings provide transparency and serve as one of many factors considered when evaluating the stock of a company in which to invest.
Investment Pro Insights
When investors analyze Natera Inc. (NASDAQ:NTRA)'s CEO's recent stock trades, it is also important to consider the company's broader financial metrics and market performance. Natera's market capitalization remains strong at $10.81 billion, reflecting investor confidence and the company's market presence. Despite this, the company's P/E ratio is currently negative at -24.86, indicating that Natera has not made a profit in the trailing twelve months ending in Q4 2023. investment pro tips This suggests that analysts do not expect the company to make a profit this year.
However, Natera has returned a strong one-year total price return of 53.58% over the last year, suggesting an attractive market performance for growth-oriented investors. The company's recent revenue growth is also noteworthy, with an increase of 31.99% over the past 12 months as of Q4 2023, which may be indicative of underlying business strength. Additionally, with a price-to-book ratio of 14.13, the company is trading at a high valuation relative to book value, something value investors should consider.
Looking for more insights and tips? investment pro tips We highlight Natera’s strong past 1-month and 3-month returns with total price returns of 27.87% and 51.7%, respectively. Additionally, the company's current assets exceed short-term debt, indicating healthy liquidity. These financial insights, along with a total of 14 additional tips available on InvestingPro, help investors make more informed decisions.Interested readers can use the coupon code pro news 24 Enrich your investment research with valuable data and analysis with an additional 10% discount on annual or biennial Pro and Pro+ subscriptions.
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