What Happened?
Shares of genomics company Illumina (NASDAQ: ILMN) fell 3.4% in the afternoon session after its negative momentum continued as Barclays maintained its Underweight recommendation on the stock. The rating, which was reiterated, signaled continued caution from the investment bank. An 'Underweight' recommendation suggests that an analyst believes the stock might perform worse than other stocks in its industry. This continued negative view from a major bank likely weighed on investor sentiment. The action came amid broader concerns regarding the company's performance, including slowing earnings growth and retreating profit margins.
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What Is The Market Telling Us
Illumina’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 22.4% on the news that it reported third-quarter 2025 financial results that beat profit expectations and raised its full-year guidance. Illumina announced non-GAAP earnings of $1.34 per share, which was well above analyst estimates of $1.17. While revenue for the quarter remained flat year on year at $1.08 billion, it also surpassed expectations. The positive market reaction was largely fueled by the company's improved forecast. Management raised its full-year adjusted earnings per share guidance to a midpoint of $4.70, a 4.4% increase from its previous outlook.
Illumina is down 8.3% since the beginning of the year, and at $120.12 per share, it is trading 22.6% below its 52-week high of $155.15 from November 2024. Investors who bought $1,000 worth of Illumina’s shares 5 years ago would now be looking at an investment worth $404.95.
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