Natera Goes IPO, Stock Jumps 26% On First Day Of Trading

Genetic testing company Natera Inc. launched its IPO today on the NASDAQ and enjoyed a great first day of trading. The company’s stock price saw an increase of $4.74, a jump of 26.33%, ending at $22.74 per share. Natera is a quickly growing, and now that it is available for public trade, investors should be aware of the company.

What is Natera?
Natera is in the business of developing and commercializing non-invasive methods for analyzing DNA, both in the United States and Europe. The company is quickly growing and a potential option for investors seeking a new stock to look at in this interesting corner of the market.
According to its IPO filing with the SEC, Natera posted revenue of $159.3 million in 2014, which was an increase of 189% from the previous year. In the first quarter of 2015 the company saw a revenue increase of 74% year over year, showing revenues continue to grow for Natera. Despite large revenues, the company has posted net losses, with 2014 having a loss of $5.2 million.  
Natera’s initial price target for its first day of trading was $18 per share, which was higher than previous targets when the IPO was first filed. The company expects net proceeds from the offering to be somewhere near $89 million. Approximately $29 million will be used as working capital and for other general corporate purposes, and the remaining amount of about $60 million will be used for further research and development. Morgan Stanley (MS) was the main manager for the deal with assistance Cowen and Company and Piper Jaffray.
The company has to be hoping that it will fare better than similar diagnostics companies that have gone public already this year, as they have not done very well after their offerings. Examples include HTG Molecular Diagnostics Inc. (HTGM - Snapshot Report), InVitae Corp. (NVTA - Snapshot Report), and OpGen Inc. , all of which now trade at a stock price that is lower than their initial offering price.

Natera has demonstrated customers’ demand for its products, and could offer a valuable opportunity for investors if it is able to continue growing as it has thus far, as well as if the company can work to improve its profitability. While from 2013 to 2014 net losses decreased significantly, it is yet to be seen whether 2015 will bring a further decrease in net loss, or even a positive net income. It is more than likely a good idea for investors to keep tabs on this stock as time moves forward.

Disclosure:  more

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.