What Happened?
Shares of genetic testing company Natera (NASDAQ: NTRA). fell 4.5% in the afternoon session after Wells Fargo & Company initiated coverage on the stock with a neutral "equal weight" rating and set a price target of $175.
The new coverage highlighted the company's recent earnings report, which missed analyst estimates for earnings per share by $0.14, though revenue did beat expectations.
The shares closed the day at $163.84, down 5.2% from previous close.
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What Is The Market Telling Us
Natera’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock dropped 2.7% on the news that the company reached an $8.25 million settlement in a legal case. The case, titled 'Amanda Davis v. Natera Inc.,' was reported by the Daily Journal. While the financial impact of the settlement may not be substantial for a company of Natera's scale, news of legal disputes can create uncertainty among investors. The announcement may have raised concerns regarding the underlying issues of the lawsuit or the potential for future legal challenges, prompting a sell-off in the company's shares.
Natera is up 2.1% since the beginning of the year, but at $163.91 per share, it is still trading 9.5% below its 52-week high of $181.11 from September 2025. Investors who bought $1,000 worth of Natera’s shares 5 years ago would now be looking at an investment worth $2,526.
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