Pacific Biosciences of California (NASDAQ:PACB) Shares Gap Down - Here's Why

Key Points

• PACB shares fell 7.6%, opening at $2.24 after previously closing at $2.33, amid weak recent financial results and investor concerns.
• Analyst sentiment is largely negative: the stock has an average “Reduce” rating and a consensus price target of $1.71, below its reported trading price.
• PacBio missed quarterly expectations, reporting a $0.14 loss per share versus the $0.13 consensus estimate and revenue of $39.01 million versus $42.90 million expected; an insider also sold 661,815 shares under a pre-arranged trading plan.

Pacific Biosciences of California, Inc. (NASDAQ:PACB - Get Free Report) shares gapped down before the market opened on Monday. The stock had previously closed at $2.33, but opened at $2.24. Pacific Biosciences of California shares last traded at $2.1750, with a volume of 1,112,425 shares.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on PACB shares. Weiss Ratings lowered shares of Pacific Biosciences of California from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, September 28th. UBS Group started coverage on shares of Pacific Biosciences of California in a research report on Wednesday, September 9th. They set a "neutral" rating and a $1.35 price target on the stock. Finally, Wall Street Zen downgraded Pacific Biosciences of California from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $1.71.

Pacific Biosciences of California Stock Down 7.6%

The company has a 50 day simple moving average of $1.54 and a 200-day simple moving average of $1.48. The stock has a market capitalization of $668.91 million, a price-to-earnings ratio of -5.01 and a beta of 2.19.

Pacific Biosciences of California (NASDAQ:PACB - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The biotechnology company reported ($0.14) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.13) by ($0.01). The business had revenue of $39.01 million for the quarter, compared to the consensus estimate of $42.90 million. Pacific Biosciences of California had a negative return on equity of 5,752.12% and a negative net margin of 82.49%. As a group, sell-side analysts anticipate that Pacific Biosciences of California, Inc. will post -0.52 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Pacific Biosciences of California news, insider James R. Gibson II sold 661,815 shares of the firm's stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $3.11, for a total value of $2,058,244.65. Following the completion of the sale, the insider directly owned 1,083,848 shares in the company, valued at approximately $3,370,767.28. This trade represents a 37.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mark Van Oene sold 26,911 shares of the firm's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $1.13, for a total transaction of $30,409.43. Following the completion of the sale, the insider owned 2,705,853 shares of the company's stock, valued at $3,057,613.89. The trade was a 0.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 3.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Pacific Biosciences of California

Several institutional investors have recently made changes to their positions in PACB. BlackRock Inc. bought a new position in Pacific Biosciences of California in the second quarter worth approximately $54,330,000. Casdin Capital LLC increased its holdings in shares of Pacific Biosciences of California by 483.6% during the fourth quarter. Casdin Capital LLC now owns 4,223,767 shares of the biotechnology company's stock valued at $7,898,000 after acquiring an additional 3,500,000 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Pacific Biosciences of California during the second quarter worth approximately $2,265,000. Hhlr Advisors LTD. acquired a new position in shares of Pacific Biosciences of California during the second quarter worth approximately $1,544,000. Finally, Dimensional Fund Advisors LP raised its position in shares of Pacific Biosciences of California by 177.9% during the first quarter. Dimensional Fund Advisors LP now owns 899,550 shares of the biotechnology company's stock worth $1,187,000 after purchasing an additional 575,801 shares during the period.

Pacific Biosciences of California Company Profile

Pacific Biosciences of California, Inc develops and sells advanced genetic sequencing technologies. The company's platform is based on single-molecule, real-time (SMRT) sequencing, which is designed to produce highly accurate, long DNA reads. These reads can help researchers identify genetic variation, assemble genomes, and analyze complex biological systems that may be difficult to study using short-read sequencing methods.

PacBio's product portfolio includes the Revio and Sequel IIe sequencing systems, SMRT Cells and other consumables, library-preparation products, and software for instrument operation, data analysis, and interpretation.

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