2. Natera, Inc. (NASDAQ:NTRA)
Number of Hedge Fund Holders: 52
Natera, Inc. (NASDAQ:NTRA) is the second stock on our list of the 10 best genomic stocks to buy now. Natera, Inc. (NASDAQ:NTRA) is a Texas-based genetic testing company that is dedicated to non-invasive cell-free DNA testing that primarily focuses on women’s health, cancer, and organ health. Natera, Inc. (NASDAQ:NTRA) has accredited and certified laboratories in California and Texas. Founded in 2004, the company is now traded as a Russell 2000 Component.
Out of the 873 hedge funds tracked by Insider Monkey, 52 held stakes in Natera, Inc. (NASDAQ:NTRA) at the end of the second quarter of 2021, worth $1.89 billion. This is compared to 41 hedge funds holding stakes amounting to $1.22 billion in the previous quarter.
On August 9, Piper Sandler analyst Steven Meh kept an Overweight rating on Natera, Inc. (NASDAQ:NTRA), raising the price target to $160 from $155. Meh believed that the company was well-positioned for growth in the second half of 2021 and beyond, while stating that the ADLT award that was granted to Natera, Inc. (NASDAQ:NTRA) ensures Medicare reimbursement for the years to come.
Out of the hedge funds tracked by Insider Monkey, Samuel Isaly’s OrbiMed Advisors is the largest stakeholder in Natera, Inc. (NASDAQ:NTRA), with 2.05 million shares amounting to $233.6 million.
The investment management firm, Alger, included Natera, Inc. (NASDAQ:NTRA) in their ‘Alger Small Cap Focus Fund’, and praised the company’s performance and its position as the market leader in the genetic diagnostics industry. Here is what they said about Natera, Inc. (NASDAQ:NTRA) in their Q4 2020 investor letter:
“Natera is a leading provider of genetic diagnostics tests used in the large, underpenetrated reproductive medicine, oncology and organ transplant markets. Natera’s disruptive technology is augmented with software algorithms, bioinformatics and artificial intelligence to improve the detection of diseases and deliver clinically actionable information, thereby addressing significant unmet medical needs and ultimately saving lives. Natera is a highly innovative company that has consistently invested 20% of its revenue in research and development. Natera stock outperformed in the fourth quarter after the company reported stronger-than-expected financial results for the three-month period ended September 30, driven by strong test volume. After the two leading reproductive medicine societies in the U.S. issued a positive joint opinion that recommends non-invasive prenatal testing (NIPT) for all pregnancies in August. UnitedHealthcare and Aetna, who were the two large national payers that did not provide reimbursement for the service, finally adopted formal coverage of NIPT. This development increases Natera’s potential for generating both strong test volume growth and a higher average price per NIPT. In October, Natera introduced testing for colorectal cancer, which is the first monitoring test launched in the U.S. to detect minimal residual disease (MRD) or cancer recurrence in solid tumors. Natera is also working to obtain final Medicare coverage and reimbursement for at least one additional application of its Signatera test involving the results of various immunotherapy drugs for cancer treatment.”
