Myriad Genetics Inc. (NASDAQ: MYGN) – Suitable For Long Term Buy?


    BlackRock Fund Advisors recently announced the acquisition of new stake in Myriad Genetics Inc. (NASDAQ:MYGN). The institutional investor has increased its shareholding in the Healthcare company by 0.03% to 11.59 million shares with purchase of 3905.0 shares. This fresh investment now brings its stake to 15.55% valued currently at $139.91 million. In addition, SSgA Funds Management, Inc. raised its holdings by 1.28 million to 5.38 million shares. And EARNEST Partners LLC has lifted its position by 14.44% or 0.6 million shares – to 4.76 million shares.

    With over 1.29 million Myriad Genetics Inc. (MYGN) shares trading Tuesday and a closing price of $13.70 on the day, the dollar volume was approximately $17.68 million. The shares have shown a negative weekly performance of -4.53% and its price on 09/01/20 gained nearly 2.47%. Currently, there are 74.60M common shares owned by the public and among those 73.13M 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: 10 analysts who have offered their price forecasts for MYGN have a consensus price objective of $15.38. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $8.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Myriad Genetics Inc. stock is 3.10 for the next 12 months. The average price target is 13.62% above its last price level and an upside to the estimated low will see the stock lose -71.25% over that period. But an upside of 54.33% will see the stock hit the forecast high price target while mean target price for the stock is $13.50.

    Insiders at the company have transacted a total of 75 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 31 of these insider trades were purchases, accounting for 1,056,754 shares. Insider sales of the common stock occurred on 44 occasions, with total insider shares sold totaling 195,391 shares.

    The top 3 mutual fund holders in Myriad Genetics Inc. are iShares Core S&P Small Cap ETF, SPDR S&P Biotech ETF, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 4.64 million shares of the company’s stock, all valued at over $56.02 million. The company bought an additional 16590.0 shares recently to bring their total holdings to about 6.23% of the shares outstanding. SPDR S&P Biotech ETF sold 32319.0 shares to see its total holdings shrink to 3.23 million shares valued at over $38.94 million and representing 4.33% of the shares outstanding. Vanguard Total Stock Market Index sold 1515.0 shares to bring its total holdings to over 2.0 million shares at a value of $24.19 million. Vanguard Total Stock Market Index now owns shares totaling to 2.69% of the shares outstanding.

    Shares of Myriad Genetics Inc. (NASDAQ: MYGN) opened at $13.29, down -$0.08 from a prior closing price of $13.37. However, the script later closed the day at $13.70, up 2.47%. The company’s stock has a 5-day price change of -4.53% and -11.61% over the past three months. MYGN shares are trading -49.69% year to date (YTD), with the 12-month market performance down to -41.95% lower. It has a 12-month low price of $9.24 and touched a high of $35.29 over the same period. Currently, 1.29 million shares have been traded, compared to an average intraday trading volume of 1.14 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 1.80%, 10.48%, and -23.25% respectively.

    Institutional ownership of Myriad Genetics Inc. (NASDAQ: MYGN) 74.60M shares outstanding. Mutual fund holders own 5.67%, while other institutional holders and individual stakeholders account for 51.75% and 48.99% respectively.

    It has a market capitalization of $1.02B and a beta (3y monthly) value of 1.47. The earnings-per-share (ttm) stands at -$2.68. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.92% over the week and 6.10% over the month.

    Analysts forecast that Myriad Genetics Inc. (MYGN) will achieve an EPS of -$0.28 for the current quarter, -$0.06 for the next quarter and $0.38 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.43 while analysts give the company a high EPS estimate of -$0.19. Comparatively, EPS for the current quarter was $0.08 a year ago. Earnings per share for the fiscal year are expected to decrease by -87.50%, and 353.30% over the next financial year. EPS should grow at an annualized rate of 8.10% over the next five years, compared to -35.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate Myriad Genetics Inc. (MYGN) as a “Hold” at a consensus score of 3.10. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 5 of the 10 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the MYGN, a number of firms have released research notes about the stock. BofA/Merrill stated their Underperform rating for the stock in a research note on September 26, 2019, with the firm’s price target at $30-$28. Piper Jaffray coverage for the Myriad Genetics Inc. (MYGN) stock in a research note released on August 14, 2019 offered a Neutral rating with a price target of $40. BofA/Merrill was of a view on August 02, 2019 that the stock is Neutral, while Barclays gave the stock Equal Weight rating on August 01, 2019, issuing a price target of $18- $40. Needham on their part issued Hold rating on July 29, 2019.


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