Its Stock Has Paid Off Big Time For Illumina Inc.

Illumina Inc. (NASDAQ: ILMN) stock jumped 1.78% on Friday to $198.17 against a previous-day closing price of $194.70. With 2.32 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.51 million shares. During the session, the Diagnostics & Research company that operates in wider Healthcare sector, reached to the highest price of $207.00 whereas the lowest price it dropped to was $195.11. The 52-week range on ILMN shows that it touched its highest point at $442.54 and its lowest point at $173.45 during that stretch. It currently has a 1-year price target of $243.18. Beta for the stock currently stands at 1.16.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ILMN was up-trending over the past week, with a rise of 0.67%, but this was up by 1.32% over a month. Three-month performance surged to 9.14% while six-month performance fell -43.41%. The stock lost -54.42% in the past year, while it has lost -47.91% so far this year. A look at the trailing 12-month EPS for ILMN yields -0.08 with Next year EPS estimates of 3.93. For the next quarter, that number is 0.32. This implies an EPS growth rate of 13.90% for this year and 39.67% for next year. EPS is expected to decline by -11.13% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 10.10%.

Float and Shares Shorts:

At present, 157.00 million ILMN shares are outstanding with a float of 156.63 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.57 million, which was 2.27% higher than short shares on Jun 14, 2022. In addition to Mr. Francis A. deSouza as the firm’s CEO & Director, Dr. Alexander Aravanis M.D., Ph.D. serves as its CTO & Head of Research and Product Devel.


Institutional Ownership:

Through their ownership of 88.93% of ILMN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.73% of ILMN, in contrast to 5.96% held by mutual funds. Shares owned by individuals account for 36.97%. As the largest shareholder in ILMN with 12.68% of the stake, Baillie Gifford & Co. holds 19,941,653 shares worth 19,941,653. A second-largest stockholder of ILMN, The Vanguard Group, Inc., holds 12,023,542 shares, controlling over 7.64% of the firm’s shares. Edgewood Management LLC is the third largest shareholder in ILMN, holding 8,168,862 shares or 5.19% stake. With a 2.96% stake in ILMN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,652,475 shares are owned by the mutual fund manager. The Advisors Inner Circle – Edgewood, which owns about 2.90% of ILMN stock, is the second-largest Mutual Fund holder. It holds 4,562,700 shares valued at 920.02 million. Scottish Mortgage Investment Trus holds 2.58% of the stake in ILMN, owning 4,063,067 shares worth 819.28 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ILMN since 18 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ILMN analysts setting a high price target of $380.00 and a low target of $130.00, the average target price over the next 12 months is $242.69. Based on these targets, ILMN could surge 91.75% to reach the target high and fall by -34.4% to reach the target low. Reaching the average price target will result in a growth of 22.47% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ILMN will report FY 2022 earnings on 01/31/2023. Analysts have provided yearly estimates in a range of $2.96 being high and $2.65 being low. For ILMN, this leads to a yearly average estimate of $2.81. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Illumina Inc. surprised analysts by -$0.05 when it reported $0.57 EPS against a consensus estimate of $0.62. The surprise factor in the prior quarter was $0.17. Based on analyst estimates, the high estimate for the next quarter is $0.63 and the low estimate is $0.23. The average estimate for the next quarter is thus $0.33.

Summary of Insider Activity:

Insiders traded ILMN stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 824 shares were sold. The number of buy transactions has increased to 26 while that of sell transactions has risen to 68 over the past year. The total number of shares bought during that period was 73,250 while 49,618 shares were sold.

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