5 Best Healthcare Stocks Under $50

3. Natera, Inc. (NASDAQ:NTRA)

Number of Hedge Fund Holders: 47

Share Price as of July 21: $48.42

At the end of the first quarter, 47 hedge funds held stakes in Natera, Inc. (NASDAQ:NTRA), with a total stake value of $1.4 billion.

Natera, Inc. (NASDAQ:NTRA) is another biotech company on our list. It develops and commercializes molecular testing services internationally.

A Buy rating was maintained on Natera, Inc. (NASDAQ:NTRA) shares on July 21 by Matthew Sykes at Goldman Sachs, alongside a $60 price target.

Fred Alger Management made the following comment about Natera, Inc. (NASDAQ:NTRA) in its first-quarter 2023 investor letter:

“Natera, Inc. (NASDAQ:NTRA) is a specialty lab providing genetic testing services in the reproductive health, oncology and transplant markets. Natera’s test portfolio falls under three categories: (1) reproductive health; (2) oncology; and (3) transplant. Reproductive health tests are run to screen for common genetic disorders such as trisomy 13, 18, and 21 in pregnant women – these tests are also known as non-invasive prenatal testing (NIPT). The company’s oncology franchise is led by Signatera, a test used to detect minimal residual disease (MRD) – the applications of this test are primarily to monitor therapy response and detect cancer recurrence. Lastly, Natera’s transplant franchise is led by Prospera, a test used to monitor transplant organ rejection. Natera’s tests are all based on the company’s proprietary liquid biopsy platform to detect cell-free DNA. During the period, shares contributed to performance primarily driven by strong fiscal fourth quarter results, solid 2023 financial guidance and positive reimbursement coverage decisions. Specifically on reimbursement, Natera announced in February that Centers for Medicare & Medicaid Services (CMS) would be covering the company’s Signatera Breast test for eligible breast cancer patients. This is an important update as the company is already running a significant volume of Signatera Breast tests with limited reimbursement. Consequently, we believe CMS coverage should contribute to additional revenue, margin, and cash flow. Natera also announced the first two positive commercial payer coverage decisions for Signatera in March 2023.”