Pacific Biosciences of California (NASDAQ:PACB) Stock Price Down 7.1% - Should You Sell?

Key Points

• PacBio shares fell 7.1% to about $1.82, with trading volume roughly 89% below its average session volume.
• Analyst sentiment is cautious: the stock has a consensus rating of “Reduce” and a $1.71 price target, with two Sell, three Hold, and one Buy rating.
• The company reported a quarterly loss of $0.14 per share and revenue of $39.01 million, missing analysts’ estimates; PacBio continues to face significant losses and negative margins.

Pacific Biosciences of California, Inc. (NASDAQ:PACB - Get Free Report)'s stock price dropped 7.1% during trading on Friday. The stock traded as low as $1.80 and last traded at $1.8210. Approximately 856,341 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 7,920,882 shares. The stock had previously closed at $1.96.

Wall Street Analyst Weigh In

A number of research analysts recently commented on PACB shares. UBS Group began coverage on Pacific Biosciences of California in a report on Wednesday, September 9th. They issued a "neutral" rating and a $1.35 price target for the company. Wall Street Zen lowered Pacific Biosciences of California from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Finally, Weiss Ratings upgraded Pacific Biosciences of California from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday. One equities research 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. According to data from MarketBeat.com, Pacific Biosciences of California presently has a consensus rating of "Reduce" and a consensus price target of $1.71.

Pacific Biosciences of California Price Performance

The stock has a market capitalization of $551.72 million, a price-to-earnings ratio of -4.15 and a beta of 2.19. The firm's fifty day moving average is $1.59 and its 200-day moving average is $1.50.

Pacific Biosciences of California (NASDAQ:PACB - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The biotechnology company reported ($0.14) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.01). The company had revenue of $39.01 million for the quarter, compared to analyst estimates 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%. On average, sell-side analysts expect that Pacific Biosciences of California, Inc. will post -0.52 EPS for the current year.

Insider Activity

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Hhlr Advisors LTD. acquired a new position in shares of Pacific Biosciences of California in the 2nd quarter worth approximately $1,544,000. BlackRock Inc. acquired a new stake in shares of Pacific Biosciences of California during the 2nd quarter valued at approximately $54,330,000. Bank of America Corp DE acquired a new stake in shares of Pacific Biosciences of California during the 2nd quarter valued at approximately $2,265,000. Bank of New York Mellon Corp acquired a new stake in shares of Pacific Biosciences of California during the 2nd quarter valued at approximately $1,290,000. Finally, Man Group plc bought a new position in Pacific Biosciences of California during the second quarter worth $1,004,000.

About Pacific Biosciences of California

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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