Natera (NTRA) Reported Solid Quarterly Revenue Despite a Share Price Decline
Fred Alger Management, an investment management company, released its “Alger Spectra Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund outperformed the Russell 3000 Growth Index which returned 12.47%. Healthcare and Industrial sectors were the contributors to the fund’s relative performance in the quarter, while consumer discretionary and utilities detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Spectra Fund highlighted stocks like Natera, Inc. (NASDAQ:NTRA) in the Q2 2023 investor letter. Headquartered in Austin, Texas, Natera, Inc. (NASDAQ:NTRA) is a diagnostics company. On September 1, 2023, Natera, Inc. (NASDAQ:NTRA) stock closed at $62.52 per share. One-month return of Natera, Inc. (NASDAQ:NTRA) was 22.54%, and its shares gained 31.21% of their value over the last 52 weeks. Natera, Inc. (NASDAQ:NTRA) has a market capitalization of $7.165 billion.
Alger Spectra Fund made the following comment about Natera, Inc. (NASDAQ:NTRA) in its Q2 2023 investor letter:
"Natera, Inc. (NASDAQ:NTRA) is a specialty lab providing genetic testing services in the reproductive health, oncology and transplant markets. 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. Shares detracted from performance this quarter after the company reported lower than expected fiscal first quarter gross margins. Moreover, we believe investors sold shares this quarter following a strong first quarter rally after the Centers for Medicare & Medicaid Services (CMS) announced they would cover Natera's Signatera Breast tests. Despite this quarter's decline in share price, the company reported solid quarterly revenues that beat analyst estimates, driven by strong volumes in women's health and management raised its fiscal 2023 revenue guidance above consensus."
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Natera, Inc. (NASDAQ:NTRA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Natera, Inc. (NASDAQ:NTRA) at the end of second quarter which was 47 in the previous quarter.
We discussed Natera, Inc. (NASDAQ:NTRA) in another article and shared the list of best healthcare stocks under $50. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
