Insider Selling Spree for Natera Inc. ($NTRA) Raises Concerns

Insider Selling Alerts: $NTRA sees no purchases in 159 trades. The data raises red flags among investors regarding potential stock price volatility and declining confidence in the company.

Date: 01-02-2025

AI Rating: 5

Insider Trading Overview
Natera Inc. ($NTRA) has experienced a significant amount of insider selling with a total of 159 trades noted in the past six months, all consisting of sales and no purchases. Notably, this could suggest a lack of confidence from insiders about the company’s future prospects, which might negatively impact stock prices.

Director Jonathan Sheena
On January 29, 2025, Jonathan Sheena, a director at Natera, sold one share at an estimated price of $167, which represents a very minor portion (0.0%) of his holdings. However, the fact that he, along with other insiders, has consistently sold stock without reinvesting raises concerns about the company's future performance.

Executive Insider Activity
Key executives, including CEO Steven Leonard Chapman and Executive Chairman Matthew Rabinowitz, have made substantial sales—Chapman sold 118,658 shares valued at approximately $18.6 million, while Rabinowitz sold 170,003 shares for about $28.2 million, among other sales. This trend could signal insider doubts regarding Natera’s growth and performance.

Institutional Investors Actions
In the recent quarter, there was a mixed trend in institutional investor activities. While 247 institutional investors added shares of NTRA, which could be interpreted as a positive sign, a larger number (254) reduced their positions, further adding to the complexity of investor sentiment towards Natera. Major investors such as Price T Rowe Associates and Wellington Management have notably increased their holdings, while others like JPMorgan and Ameriprise have decreased theirs significantly. This mixed sentiment might keep stock prices unstable.

Congressional Trading
Interestingly, there was one reported purchase by Representative Josh Gottheimer, adding a modest amount of $15,000 worth of stock on November 20. While this is a positive sign, it does not outweigh the concerns raised by widespread insider selling.

Given the overall lack of insider purchases and the overwhelming number of sales, along with mixed institutional investor activity, investor sentiment towards Natera’s stock is likely to be cautious, which may lead to stock price volatility in the near future.

Stocks: NTRA