Pacific Biosciences of California Inc. (NASDAQ: PACB): The Best-Of-Breed For Investing?


BlackRock Fund Advisors recently announced the acquisition of new stake in Pacific Biosciences of California Inc. (NASDAQ:PACB). The institutional investor has increased its shareholding in the Healthcare company by 4.24% to 11.17 million shares with purchase of 0.45 million shares. This fresh investment now brings its stake to 7.24% valued currently at $41.67 million. In addition, Bellevue Asset Management AG raised its holdings by 0.98 million to 8.36 million shares. And ARK Investment Management LLC has lifted its position by 96.31% or 4.04 million shares – to 8.23 million shares.

With over 1.38 million Pacific Biosciences of California Inc. (PACB) shares trading Friday and a closing price of $6.41 on the day, the dollar volume was approximately $8.82 million. The shares have shown a negative weekly performance of -2.14% and its price on 08/28/20 gained nearly 1.42%. Currently, there are 154.17M common shares owned by the public and among those 151.27M 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 PACB have a consensus price objective of $6.00. The analysts have set the share’s price value over the next 12 months at a high of $8.00 and a low of $5.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Pacific Biosciences of California Inc. stock is 2.50 for the next 12 months. The average price target is -1.26% below its last price level and a downside to the estimated low will see the stock lose -28.2% over that period. But an upside of 19.88% will see the stock hit the forecast high price target while mean target price for the stock is $5.50.

Insiders at the company have transacted a total of 16 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 9 of these insider trades were purchases, accounting for 505,000 shares. Insider sales of the common stock occurred on 7 occasions, with total insider shares sold totaling 954,565 shares.

The top 3 mutual fund holders in Pacific Biosciences of California Inc. are American Funds Small Cap World Fu, ARK Genomic Revolution ETF, and Vanguard Total Stock Market Index. American Funds Small Cap World Fu owns 12.24 million shares of the company’s stock, all valued at over $45.66 million. ARK Genomic Revolution ETF bought 33130.0 shares to see its total holdings expand to 10.15 million shares valued at over $37.87 million and representing 6.58% of the shares outstanding. Vanguard Total Stock Market Index now owns shares totaling to 2.62% of the shares outstanding.

Shares of Pacific Biosciences of California Inc. (NASDAQ: PACB) opened at $6.36, up $0.04 from a prior closing price of $6.32. However, the script later closed the day at $6.41, up 1.42%. The company’s stock has a 5-day price change of -2.14% and 80.56% over the past three months. PACB shares are trading 24.71% year to date (YTD), with the 12-month market performance up to 15.08% higher. It has a 12-month low price of $2.20 and touched a high of $6.73 over the same period. Currently, 1.38 million shares have been traded, compared to an average intraday trading volume of 1.77 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 18.50%, 44.61%, and 53.98% respectively.

Institutional ownership of Pacific Biosciences of California Inc. (NASDAQ: PACB) shares accounts for 79.40% of the company’s 154.17M shares outstanding. Mutual fund holders own 29.97%, while other institutional holders and individual stakeholders account for 42.34% and 10.31% respectively.

It has a market capitalization of $1.10B and a beta (3y monthly) value of 1.96. The earnings-per-share (ttm) stands at -$0.33. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.28% over the week and 6.39% over the month.

Analysts forecast that Pacific Biosciences of California Inc. (PACB) will achieve an EPS of -$0.14 for the current quarter, $0.16 for the next quarter and -$0.48 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.15 while analysts give the company a high EPS estimate of -$0.13. Comparatively, EPS for the current quarter was -$0.19 a year ago. Earnings per share for the fiscal year are expected to increase by 27.30%, and -336.40% over the next financial year. EPS should grow at an annualized rate of 30.00% over the next five years, compared to 10.10% 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 Pacific Biosciences of California Inc. (PACB) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 2 of the 4 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the PACB, a number of firms have released research notes about the stock. Cantor Fitzgerald stated their Overweight rating for the stock in a research note on June 02, 2020, with the firm’s price target at $5. Cantor Fitzgerald coverage for the Pacific Biosciences of California Inc. (PACB) stock in a research note released on March 09, 2020 offered a Overweight rating with a price target of $5. Piper Jaffray was of a view on October 15, 2019 that the stock is Overweight, while Stephens gave the stock Equal-Weight rating on April 02, 2019, issuing a price target of $4.50- $8. Cowen on their part issued Outperform rating on October 19, 2018.


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