What Happened?
Shares of genetic testing company Natera (NASDAQ: NTRA). fell 2.7% in the afternoon session after 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.
The shares closed the day at $168.45, down 3.1% 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 2 days ago when the stock dropped 4.1% on the news that a key competitor, Exact Sciences, announced the launch of a new multi-cancer early detection blood test. Exact Sciences, a leader in cancer diagnostics, launched its Cancerguard™ test, which is now available as a laboratory-developed test in the United States. This move introduces significant competition in the early cancer detection market, a key area for Natera, likely raising investor concerns about market share and future growth.
Natera is up 4.9% since the beginning of the year, and at $168.51 per share, it is trading close to its 52-week high of $177 from February 2025. Investors who bought $1,000 worth of Natera’s shares 5 years ago would now be looking at an investment worth $2,731.
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