Natera Inc (NASDAQ:NTRA) stock has taken a significant hit today, in what probably is the result of the company’s lock-up period coming to an end. For those unfamiliar, a lock-up period is the time allotted to a stock (usually following an initial public offering), in which company executives and other large shareholders are prohibited from selling their shares. This means that when the period expires, we usually see a larger than normal amount of sell orders placed as these shareholders/executives use the opportunity to sell unwanted shares.
This also comes on the heels of Zack’s Research raising Natera Inc (NASDAQ:NTRA) from a sell to a hold rating.
While many investors look at stocks falling in price at the end of a lock-up period as a bad sign, it usually always happens, especially for smaller companies. Sometimes it can be an excellent way of buying cheap shares.
The stock is down 8.91% or $1.01 following the news, hitting $10.33 per share. Approximately 120,560 shares traded hands. ntra shares have risen 6.00% since November 29, 2015 and are currently uptrending. It has outperformed the S&P500 by 8.27%.
Natera, Inc. is a diagnostics company. The company has a market cap of $541.44 million. The Firm has molecular and bioinformatics technology that it deploys to change genetic diseases across the world. It currently has negative earnings. The Company’s molecular assays measure various regions across the genome from samples as small as a single cell.