Is there “there there” in Illumina’s stock price drop?
When the size of a stock’s drop exceeds the broader market’s drop, then there may be some “there there.” Yesterday, Illumina stock fell just over -7% at market closing price. Let’s adjust this first:
Why has Illumina performed so well over the years?
Looking at Illumina’s 10-Q SEC filing reminds us of why this company has performed so well over the years. Incredibly, over 70% of Illumina’s revenues came from consumables.
Why did Illumina raise $21 million for a startup biotech company?
Illumina Inc.'s ex-chief technology officer and former colleagues raised $21 million for a startup biotech company that, according to a job posting, is seeking engineers and scientists "with a passion to develop the next generation of technologies for unraveling complexities of biology beyond what is within the realm of possibility today.
Are Illumina’s revenues worse than they were in 2020?
Broadly speaking, Illumina’s revenues for the first nine months of 2020 are only 12% less than last year. Since the Rona reared its ugly head at the beginning of this year, shares of Illumina have risen +4% compared to a Nasdaq return of +37% over the same time frame.
Why did Illumina stock drop?
The gene-sequencing supplier Illumina delivered on its March quarter financial forecasts, as global demand for genetically-informed cancer treatment made up for Covid lockdowns at China's labs, but Wall Street analysts cut their forecasts for the stock price regardless.
Is Illumina a good stock to invest in?
Illumina is a good long-term investment since its projects and research will take time to realize returns when its products and patents make their way into the market. Speculators should avoid the stock as it tends to exhibit short-term fluctuation.
Is Illumina undervalued?
Illumina retains a regular Real Value of $261.82 per share. The prevalent price of the firm is $194.88. At this time, the firm appears to be undervalued....USD 194.88 9.31 4.56%LowTarget PriceHigh340.00440.36570.00
Does Illumina stock pay dividends?
ILMN Illumina, Inc. ILMN does not currently pay a dividend.
Is Illumina still a buy?
Illumina is still a bargain right now. According to my valuation, the intrinsic value for the stock is $551.26, but it is currently trading at US$356 on the share market, meaning that there is still an opportunity to buy now.
Is Illumina a buy Zacks?
Zacks' proprietary data indicates that Illumina, Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the ILMN shares relative to the market in the next few months.
Who owns Illumina?
Francis deSouzaIllumina, Inc.TypePublicKey peopleFrancis deSouza (President & CEO) John W. Thompson ( Board Chair) Sam Samad (CFO)ProductsNovaSeq 6000, HiSeq X, HiSeq 4000, MiSeq, MiSeqDx, MiniSeq, iSeq 100, NextSeq 550, NextSeq 550Dx, iScanRevenueUS$4.53 billion (2021)Operating incomeUS$−0.12 billion (2021)12 more rows
How do I invest in Illumina?
How to buy Illumina Stocks & Shares to Invest in ILMN Steps of buying Illumina sharesStep 1: find a good online broker. ... Step 2: open your brokerage account. ... Step 3: deposit money to your account. ... Step 4: buy the Illumina share. ... Step 5: review your Illumina position regularly.
How much did Illumina buy Grail?
This past September, Illumina shares tumbled -7.5% when they announced plans to buy Grail for $3.5 billion in cash and $4.5 billion in shares, a price tag that investors may have thought was too rich. ( Illumina plans to raise $1 billion in capital through debt ...
What is PCR testing?
Once the pathogen was identified and the genome shared publicly, diagnostic tests (PCR) were then developed, based on the pathogen’s genomic sequence. While PCR testing shows the existence of COVID, NGS machines can still be used going forward to show how the virus mutates over time.
How much of Illumina's revenue comes from consumables?
Incredibly, over 70% of Illumina’s revenues came from consumables. Also known as the “razor and blades model,” these business models work well when consumables are high-margin products, and Illumina is no exception with 2019 gross margins nearing 70%. Illumina’s basic financials – Credit: Yahoo Finance.
Is Exact Sciences publicly traded?
In the early screening space, you have three publicly traded companies now – Exact Sciences ( EXAS) which recently acquired Thrive, Guardant ( GH ), and Illumina’s Grail. The only private company left is Freenome which has raised more than $500 million from investors such as Roche, Novartis, Google, and Fidelity.
What happened?
Healthcare giant Illumina ( NASDAQ:ILMN) reported its second-quarter financial results after the market closed on Thursday. The company's update showed that its performance during the period came short of expectations. As a result, investors are selling off shares of Illumina today, and its stock is down by 13.1% as of 12:51 p.m. EDT.
So what
During the second quarter, Illumina recorded revenue of $633 million -- a 25% year-over-year decrease -- which is what analysts were expecting on average. Also, the company recorded a non-GAAP (adjusted) net income of $92 million, or $0.62 on a per-share basis.
Now what
The COVID-19 pandemic will continue to present serious obstacles to Illumina. However, the genome sequencing market is ripe for growth, and Illumina is one of the leaders in this market. The healthcare company is poised to rebound once the crisis subsides, which means now may be a good opportunity to purchase its shares.
How much did Boston Scientific grow in revenue?
1. Revenue Growth. Between 2017 and 2020, Boston Scientific’s revenues grew by about 10% from $9.0 billion in 2017 to $9.9 billion in 2020. Note that 2020 revenues declined 7% y-o-y due to the impact of the pandemic on the company’s business.
What is trefis finance?
Trefis. Trefis is an interactive financial community structured around trends, forecasts and insights related to some of the most popular stocks in the US. Whereas most finance sites simply give you the facts about where a stock has been and what a company has done in the past, Trefis focuses entirely on the future.
When will NovaSeq 6000 be released?
Secondly, the company is seeing strong demand for its NovaSeq 6000, the company’s new genome sequencing device, which was launched in August 2020, and this trend is expected to continue in the near term.
Is Illumina better than Boston Scientific?
Now, Illumina’s operating margin has been better than Boston Scientific over the last twelve month period as well as over the recent years.
Will Boston Scientific see a rebound in 2021?
However, we believe that this gap will narrow going forward in favor of Boston Scientific. While business for both the companies have been hit during the pandemic, due to deferment of elective surgeries, it is expected to see a sharp rebound in 2021, with containment of the Covid-19 virus.
How much did Boston Scientific grow in revenue?
1. Revenue Growth. Between 2017 and 2020, Boston Scientific’s revenues grew by about 10% from $9.0 billion in 2017 to $9.9 billion in 2020. Note that 2020 revenues declined 7% y-o-y due to the impact of the pandemic on the company’s business.
What happens if you buy Illumina stock?
Answer: If you buy and hold Illumina stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
When will NovaSeq 6000 be released?
Secondly, the company is seeing strong demand for its NovaSeq 6000, the company’s new genome sequencing device, which was launched in August 2020, and this trend is expected to continue in the near term. In fact, Illumina’s Q1 2021 marked its highest first-quarter placements of NovaSeq. Lastly, using the recent trend and ten years ...
Is Illumina a leader in sequencing?
Illumina is a leader in the sequencing systems and it is likely to continue to see expansion of its base. Illumina’s revenue growth, operating income growth, and operating margins, all compare favorably with Boston Scientific over the recent years, and this has been rewarded by the investors in the form of a high multiple that ILMN stock trades at. However, as we look forward, Boston Scientific will likely continue to expand its offerings and gain market share over the coming years, though the company faces stiff competition from Medtronic and Abbott. Illumina will see increased competition in the sequencing market, with companies such as Pacific Biosciences PACB +2% of California also expanding their installed base, and comparatively smaller companies, including Rosewell Biotechnologies making inroads to offer less expensive sequencing options. Also, Oxford Nanopore Technologies has been gaining attention for its different approach to sequencing. We believe that an increased competition will weigh on the multiple that ILMN stock currently enjoys. As such, we believe that the valuation gap between Boston Scientific and Illumina will narrow going forward and BSX stock will offer better returns for long-term investors.
Is Illumina better than Boston Scientific?
Now, Illumina’s operating margin has been better than Boston Scientific over the last twelve month period as well as over the recent years. Also, Illumina’s margins have been on an upward trajectory till before the pandemic.
Will Boston Scientific see a rebound in 2021?
However, we believe that this gap will narrow going forward in favor of Boston Scientific. While business for both the companies have been hit during the pandemic, due to deferment of elective surgeries, it is expected to see a sharp rebound in 2021, with containment of the Covid-19 virus.
Is the average return after a rise lower than after a fall?
Answer: The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although ILMN stock appears to be an exception to this general observation.
Investors are skeptical about the company's latest acquisition
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
What happened
Shares of Illumina ( NASDAQ:ILMN) are sinking today, down 6.7% as of 11:48 a.m. EDT, after the genomic-sequencing specialist announced that it plans to acquire GRAIL for $8 billion.
So what
Illumina actually founded GRAIL in 2016 but later spun out the company as a stand-alone entity. GRAIL is focused on the development of liquid biopsies: blood tests that detect cancer by identifying fragments of DNA separated from tumor cells.
Now what
The price that Illumina is paying for GRAIL won't matter over the long run -- if GRAIL is successful in developing and marketing liquid biopsy products. GRAIL hopes to launch its first product, multicancer early detection test Galleri, next year for laboratory use only.
What happened
Shares of Illumina ( NASDAQ:ILMN) dipped 12.6% in March, according to data from S&P Global Market Intelligence. The stock lost ground due to negative analyst coverage and a challenge to its acquisition of liquid-biopsy specialist Grail.
So what
The Barclays note on Illumina stock acknowledged that the company has a significant opportunity in gene sequencing and management, but indicated that it would face near-term growth issues and was likely overvalued as a result.
Now what
Illumina stock has gained ground early in April. The price is up roughly 8% in the month so far thanks to encouraging preliminary first-quarter results.
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What happened
Shares of Illumina (NASDAQ: ILMN) were tanking today, down 16% as of 10:27 a.m. EDT, after the genomic sequencing leader announced preliminary results for its second quarter on Thursday evening. Illumina said that it expects to report Q2 revenue of $835 million -- $50 million lower than what Wall Street analysts anticipated.
So what
Illumina stock is priced at a hefty premium because investors expect strong growth for the company. Any issues that arise for companies with lofty valuations usually cause the shares to sink. And that's what happened with Illumina.
