With Natera, Inc.'s (NASDAQ:NTRA)) price down 10% this week, insiders might find some solace having sold US$13m worth of shares earlier this year.

By
Simply Wall St
Published
January 17, 2022
NasdaqGS:NTRA
Source: Shutterstock

Insiders at Natera, Inc. (NASDAQ:NTRA) sold US$13m worth of stock at an average price of US$96.36 a share over the past year, making the most of their investment. The company's market valuation decreased by US$736m after the stock price dropped 10% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Natera

The Last 12 Months Of Insider Transactions At Natera

Over the last year, we can see that the biggest insider sale was by the Lead Independent Director, Roelof Botha, for US$6.4m worth of shares, at about US$94.19 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$67.37). So it may not tell us anything about how insiders feel about the current share price.

In the last year Natera insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:NTRA Insider Trading Volume January 17th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Natera

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Natera insiders own about US$220m worth of shares (which is 3.4% 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.

So What Do The Natera Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Natera shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Natera insiders selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Natera has 3 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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