Natera (NTRA) Stock Tanks as Top Brass Dumps Shares—What Wall Street Isn’t Telling You

Another day, another insider cashing out—Natera's executive chairman just joined the club.

Wall Street's favorite genetic testing play got a reality check today as NTRA shares nosedived on insider selling. The move reeks of 'do as I say, not as I do' corporate governance—but hey, who's counting when there are retail bags to hold?

Here's the kicker: while analysts keep pumping price targets, the suits are quietly heading for the exits. Classic case of 'sell the news' before the news even hits.

Pro tip: When insiders sell, they're not betting against the company—they're betting against you. But sure, keep buying those dips.

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Between May 15 and June 13 of this year, Rabinowitz sold 54,000 shares of NTRA common stock, netting him proceeds of $8.38 million. The sales occurred at prices ranging from $150.20 to $165.85 per share. The stock, currently trading at $164.16, is not too far from its 52-week high of $183.

Natera is genetic testing company based in Austin, Texas that specializes in DNA testing technology, with a focus on cancer and organ health. NTRA stock is a favorite of many well-known investors and is currently the largest position of billionaire Stanley Druckenmiller.

Over the last 12 months, NTRA stock has increased 54%.

Strong Financials

After his recent sales, Rabinowitz continues to indirectly own 30,000 shares of NTRA stock through his spouse, and directly owns 2,362,570 shares of Natera in his own personal accounts. Based on the current share price, Rabinowitz’s holdings of NTRA stock are worth $392.76 million.

Natera’s stock has been rising alongside the company’s financial results in recent quarters. For the first-quarter of this year, the company reported an earnings per share (EPS) loss of -$0.50, which was better than the -$0.64 loss expected on Wall Street. The company announced Q1 revenue of $522 million, a 37% increase from the previous year. Management raised their full-year revenue guidance.

Is NTRA Stock a Buy?

Natera’s stock has a consensus Strong Buy rating among 11 Wall Street analysts. That rating is based on 11 Buy recommendations issued in the last three months. There are currently no Hold or Sell ratings on the stock. The average NTRA price target of $206.40 implies 25.73% upside from current levels.