Yahoo Finance Who Has Been Selling Natera, Inc. (NASDAQ:NTRA) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Natera, Inc. (NASDAQ:NTRA), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
View our latest analysis for Natera
Natera Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Co-Founder Matthew Rabinowitz sold US$5.1m worth of shares at a price of US$24.14 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$12.32. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we note insiders sold 214.48k shares worth US$5.1m. Over the last year we saw more insider selling of Natera shares, than buying. The average sell price was around US$23.74. Insider selling doesn’t make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$12.32. The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Natera insiders own about US$33m worth of shares (which is 4.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Natera Tell Us?
It doesn’t really mean much that no insider has traded Natera shares in the last quarter. The insider transactions at Natera are not very heartening. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Natera may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
