Illumina, Inc. (NASDAQ:ILMN) experienced a notable increase in short interest in January 2024, rising by 28.6%. As of January 30, the total short interest amounted to 8,300,465 shares, up from 6,455,325 shares on January 15. This surge means that approximately 5.4% of the company’s outstanding shares are currently short sold. Given an average daily volume of 2,093,599 shares, the short-interest ratio stands at 4.0 days.
Insider Transactions and Institutional Activity
In a separate development, insider Scott M. Davies sold 323 shares of Illumina on December 12, 2023. The transaction occurred at an average price of $136.09, culminating in total proceeds of $43,957.07. Following this sale, Davies retains 17,887 shares, valued at around $2,434,241.83, reflecting a 1.77% decrease in his ownership. This transaction was reported to the U.S. Securities and Exchange Commission (SEC).
Institutional investors have been actively adjusting their positions in Illumina. Notably, Guggenheim Capital LLC increased its stake by 5.1%, acquiring an additional 1,743 shares to hold a total of 35,745 shares valued at $4,688,000. Similarly, Caisse de depot et placement du Quebec boosted its holdings by an impressive 121.9%, now owning 338,251 shares worth $44,365,000 after purchasing 185,810 additional shares.
Moreover, AQR Capital Management LLC expanded its investment by 30.3%, now holding 4,426,126 shares valued at $580,531,000. In the fourth quarter, Braidwell LP acquired a new stake valued at $35,370,000, while Cardiff Park Advisors LLC also entered the market with a new position valued at about $225,000. Currently, institutional investors own approximately 89.42% of Illumina’s stock.
Stock Performance and Analyst Ratings
As of Wednesday, Illumina shares opened at $116.51. The company reports a fifty-day simple moving average of $136.77 and a two-hundred day average of $116.89. With a market capitalization of $17.81 billion, Illumina holds a price-to-earnings (P/E) ratio of 21.38 and a price-to-earnings-growth (PEG) ratio of 2.23. The company has a current ratio of 2.08, a quick ratio of 1.72, and a debt-to-equity ratio of 0.55. Over the past year, shares have fluctuated, reaching a low of $68.70 and a high of $155.53.
Illumina recently announced its quarterly earnings results on February 5, 2024. The company reported earnings per share (EPS) of $1.35, exceeding the consensus estimate of $1.26 by $0.09. Illumina’s revenue for the quarter totaled $1.16 billion, surpassing analysts’ expectations of $1.10 billion, and reflecting a 5.0% increase compared to the same quarter last year. Looking ahead, Illumina has set its fiscal year 2026 guidance at 5.050-5.200 EPS. Analysts predict the company will report $4.51 EPS for the current year.
Analysts have varied opinions on Illumina’s stock. In a recent report, Canaccord Genuity Group raised its price target from $130.00 to $150.00 while maintaining a “hold” rating. Meanwhile, Piper Sandler lowered its price target from $195.00 to $170.00 and set an “overweight” rating. Weiss Ratings reaffirmed a “hold (c-)” rating, and UBS Group issued a “neutral” rating with a price target of $135.00. Overall, six analysts have rated Illumina as a “buy,” eleven maintain a “hold” rating, and two have assigned a “sell” rating, leading to a consensus rating of “hold” with a price target of $127.94, according to data from MarketBeat.com.
Founded in 1998 and headquartered in San Diego, California, Illumina, Inc. is a leading global life sciences company focused on developing and marketing integrated systems for genetic analysis. Its product offerings include next-generation sequencing (NGS) platforms, microarrays for genotyping, and various laboratory consumables. The company serves a diverse clientele, including academic researchers, clinical laboratories, and pharmaceutical firms, thereby supporting discovery and clinical applications in the life sciences sector.
