Illumina (ILMN) Cut to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Illumina (NASDAQ:ILMN) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning.

According to Zacks, “In the past three months, Illumina has outperformed its industry. The company has been riding high on a solid product portfolio and streak of new product launches. Of the most important ones, management is hopeful about the recently-launched NovaSeq S1 flow cell reagent kit. The company also launched the S4 200 cycle kit on NovaSeq and the NovaSeq S Prime (SP) flow cell which will be commercially available in fourth-quarter 2018. Illumina’s acquisition of Edico Genome is also expected to drive results in the days ahead. Additionally, improving margins buoy optimism. Further, the company’s raised 2018 guidance indicates that the company will deliver solid results in the quarters to come. On the flip side, seasonality in DTC functionality continues to dent Illumina’s microarray sales. Funding issues restrict growth. The company is operating in a tough competitive landscape. Further, the stock looks a bit overvalued at the moment.”

Other equities research analysts have also issued research reports about the company. JPMorgan Chase & Co. raised their price target on Illumina to $350.00 and gave the stock an overweight rating in a research report on Tuesday, July 31st. Barclays raised their price target on Illumina from $300.00 to $350.00 and gave the stock an overweight rating in a research report on Tuesday, July 31st. ValuEngine lowered Illumina from a strong-buy rating to a buy rating in a research report on Thursday, October 11th. Cowen raised their price target on Illumina from $275.00 to $315.00 and gave the stock an outperform rating in a research report on Tuesday, July 10th. Finally, Piper Jaffray Companies reaffirmed an overweight rating and set a $350.00 price target on shares of Illumina in a research report on Tuesday, July 31st. One analyst has rated the stock with a sell rating, six have assigned a hold rating and fifteen have given a buy rating to the stock. Illumina currently has a consensus rating of Buy and an average target price of $324.76.

NASDAQ:ILMN traded down $1.66 during mid-day trading on Tuesday, hitting $319.79. The company had a trading volume of 23,022 shares, compared to its average volume of 1,065,463. Illumina has a fifty-two week low of $198.21 and a fifty-two week high of $372.61. The company has a current ratio of 2.74, a quick ratio of 2.44 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $48.36 billion, a price-to-earnings ratio of 82.01, a PEG ratio of 2.72 and a beta of 0.97.

Illumina (NASDAQ:ILMN) last released its earnings results on Monday, July 30th. The life sciences company reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.11 by $0.32. The firm had revenue of $830.00 million for the quarter, compared to analyst estimates of $786.88 million. Illumina had a return on equity of 26.64% and a net margin of 20.88%. The company’s quarterly revenue was up 25.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.82 earnings per share. Sell-side analysts predict that Illumina will post 5.46 earnings per share for the current year.

In other news, SVP Mostafa Ronaghi sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, August 10th. The stock was sold at an average price of $331.39, for a total value of $3,313,900.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Jay T. Flatley sold 3,300 shares of the firm’s stock in a transaction that occurred on Wednesday, October 10th. The shares were sold at an average price of $321.58, for a total value of $1,061,214.00. Following the completion of the sale, the director now directly owns 385,604 shares of the company’s stock, valued at $124,002,534.32. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 52,483 shares of company stock valued at $17,702,063. Corporate insiders own 0.54% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the stock. Janney Montgomery Scott LLC lifted its holdings in Illumina by 10.0% in the 2nd quarter. Janney Montgomery Scott LLC now owns 23,555 shares of the life sciences company’s stock worth $6,579,000 after purchasing an additional 2,141 shares during the last quarter. Standard Life Aberdeen plc lifted its holdings in Illumina by 31.1% in the 2nd quarter. Standard Life Aberdeen plc now owns 34,546 shares of the life sciences company’s stock worth $9,650,000 after purchasing an additional 8,199 shares during the last quarter. Waters Parkerson & CO. LLC acquired a new stake in Illumina in the 2nd quarter worth approximately $223,000. Eqis Capital Management Inc. lifted its holdings in Illumina by 40.7% in the 2nd quarter. Eqis Capital Management Inc. now owns 9,676 shares of the life sciences company’s stock worth $2,702,000 after purchasing an additional 2,797 shares during the last quarter. Finally, Bank of Nova Scotia lifted its holdings in Illumina by 216.4% in the 2nd quarter. Bank of Nova Scotia now owns 59,185 shares of the life sciences company’s stock worth $16,529,000 after purchasing an additional 40,478 shares during the last quarter. 89.91% of the stock is currently owned by hedge funds and other institutional investors.

Illumina Company Profile

Illumina, Inc provides sequencing and array-based solutions for genetic analysis. The company operates in two segments, Core Illumina and Consolidated VIEs. It offers sequencing by synthesis technology that provides researchers with various applications and the ability to sequence mammalian genomes; and arrays for a range of deoxyribonucleic acid and RNA analysis applications, including single nucleotide polymorphism genotyping, copy number variations analysis, gene expression analysis, and methylation analysis, as well as allow the detection of known genetic markers on a single array.

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