Form 4: Natera CFO Michael Brophy Sells Shares to Cover Tax Obligations and Under 10b5-1 Plan
SEC Form 4 Filing
Natera's CFO, Michael Brophy, sold shares of common stock to cover tax obligations related to vesting RSUs and under a pre-arranged 10b5-1 trading plan.
Summary
- Michael Brophy, the Chief Financial Officer of Natera, Inc., sold shares of the company's common stock on April 28 and 29, 2025.
- The sales were executed to satisfy tax withholding obligations related to the vesting of Restricted Stock Units (RSUs) and under a pre-arranged Rule 10b5-1 trading plan.
- On April 28, 2025, Brophy sold 2,018 shares at a price of $152.1824 per share.
- On April 29, 2025, he sold an additional 3,045 shares in multiple transactions at weighted average prices ranging from $152.9004 to $155.435 per share.
- Following these transactions, Brophy directly owns 70,494 shares of Natera's common stock.
Sentiment
Score: 6
Explanation: The document is a routine SEC Form 4 filing, indicating stock sales by an executive. The sales are related to tax obligations and a pre-arranged trading plan, suggesting a neutral sentiment. There is no indication of positive or negative news about the company.
Industry Context
Sales by company executives are a normal part of corporate governance. Sales to cover tax obligations are common. Sales under 10b5-1 plans are also common and allow insiders to sell shares without being accused of insider trading.
Comparison to Industry Standards
- It's common for executives at publicly traded companies, including those in the biotechnology and diagnostics sectors like Natera, to utilize Rule 10b5-1 trading plans.
- These plans allow insiders to sell shares over a predetermined period, helping to avoid concerns about trading on non-public information.
- Companies like Exact Sciences, Guardant Health, and Invitae also see similar patterns of executive stock sales for diversification or tax planning purposes.
- The volume and frequency of these sales can vary based on individual financial circumstances and company policies.
Key Dates
| Date | Description |
|---|---|
| 01/27/2023 | Date of Stock Unit Agreements granted to the Reporting Person. |
| 01/26/2024 | Date of Stock Unit Agreements granted to the Reporting Person. |
| 06/14/2024 | Date the Reporting Person adopted a Rule 10b5-1 trading plan. |
| 04/28/2025 | Date of the first reported transaction (sale of 2,018 shares). |
| 04/29/2025 | Date of subsequent reported transactions (sale of 3,045 shares). |
| 04/30/2025 | Date of the Form 4 filing. |
Keywords
Natera, NTRA, Michael Brophy, CFO, stock sale, Form 4, Rule 10b5-1, RSUs, tax obligations, insider trading
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