Value Hunters: Look To Luminex Corporation (NASDAQ: LMNX)

FIVE Stock
FIVE Stock

The Vanguard Group, Inc. recently announced the acquisition of new stake in Luminex Corporation (NASDAQ:LMNX). The institutional investor has increased its shareholding in the Healthcare company by 2.52% to 4.37 million shares with purchase of 0.11 million shares. This fresh investment now brings its stake to 9.55% valued currently at $136.27 million. In addition, Renaissance Technologies LLC raised its holdings by 17260.0 to 2.31 million shares. And SSgA Funds Management, Inc. has lifted its position by 17.71% or 0.23 million shares – to 1.52 million shares.

With over 0.51 million Luminex Corporation (LMNX) shares trading Thursday and a closing price of $32.84 on the day, the dollar volume was approximately $16.75 million. The shares have shown a positive weekly performance of 6.83% and its price on 07/02/20 gained nearly 2.56%. Currently, there are 44.40M common shares owned by the public and among those 43.09M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 4 analysts who have offered their price forecasts for LMNX have a consensus price objective of $33.33. The analysts have set the share’s price value over the next 12 months at a high of $42.00 and a low of $18.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Luminex Corporation stock is 2.70 for the next 12 months. The average price target is 1.47% above its last price level and an upside to the estimated low will see the stock lose -82.44% over that period. But an upside of 21.81% will see the stock hit the forecast high price target while mean target price for the stock is $40.00.

Insiders at the company have transacted a total of 66 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 33 of these insider trades were purchases, accounting for 573,709 shares. Insider sales of the common stock occurred on 33 occasions, with total insider shares sold totaling 679,532 shares.

The top 3 mutual fund holders in Luminex Corporation are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. iShares Core S&P Small Cap ETF owns 2.5 million shares of the company’s stock, all valued at over $77.82 million. The company bought an additional 1105.0 shares recently to bring their total holdings to about 5.45% of the shares outstanding. Vanguard Total Stock Market Index sold 21100.0 shares to see its total holdings shrink to 1.14 million shares valued at over $35.65 million and representing 2.50% of the shares outstanding. Vanguard Small Cap Index Fund sold 6468.0 shares to bring its total holdings to over 1.05 million shares at a value of $32.73 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.29% of the shares outstanding.

Shares of Luminex Corporation (NASDAQ: LMNX) opened at $32.09, up $0.07 from a prior closing price of $32.02. However, the script later closed the day at $32.84, up 2.56%. The company’s stock has a 5-day price change of 6.83% and 16.66% over the past three months. LMNX shares are trading 41.80% year to date (YTD), with the 12-month market performance up to 60.04% higher. It has a 12-month low price of $17.34 and touched a high of $40.21 over the same period. Currently, 0.51 million shares have been traded, compared to an average intraday trading volume of 778.12K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 9.19%, 2.01%, and 29.12% respectively.

Institutional ownership of Luminex Corporation (NASDAQ: LMNX) shares accounts for 85.70% of the company’s 44.40M shares outstanding. Mutual fund holders own 40.60%, while other institutional holders and individual stakeholders account for 43.44% and 12.75% respectively.

It has a market capitalization of $1.46B and a beta (3y monthly) value of 0.68. The stock’s earnings-per-share (ttm) stands at -$0.29. The company has a Quick Ratio of 2.40 with the debt-to-equity ratio at 0.01. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.57% over the week and 4.57% over the month.

Analysts forecast that Luminex Corporation (LMNX) will achieve an EPS of $0.04 for the current quarter, $0.30 for the next quarter and $0.32 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.05 while analysts give the company a high EPS estimate of $0.13. Comparatively, EPS for the current quarter was -$0.1 a year ago. Earnings per share for the fiscal year are expected to decrease by -190.70%, and 112.00% over the next financial year. EPS should grow at an annualized rate of 15.00% over the next five years, compared to -17.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Luminex Corporation (LMNX) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 2 of the 4 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the LMNX, a number of firms have released research notes about the stock. JP Morgan stated their Underweight rating for the stock in a research note on September 27, 2019, with the firm’s price target at $23-$21. BTIG Research coverage for the Luminex Corporation (LMNX) stock in a research note released on January 05, 2018 offered a Buy rating with a price target of $24. Deutsche Bank was of a view on January 18, 2017 that the stock is Sell, while Avondale gave the stock Mkt Outperform rating on October 12, 2016 $27. JP Morgan on their part issued Neutral rating on August 18, 2016.


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