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Why Is Pacific Biosciences Stock Up ~6.2% Today?

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Stock performance

Today, Pacific Biosciences of California (PACB) is trading at $5.16 per share, up ~6.17% from yesterday’s close of $4.86. On September 12, Pacific Biosciences stock closed at $4.86, a 6.46% increase from its September 11 closing price of $4.57. Its September 12 stock price represented an ~141.0% rise from its 52-week low of $2.02 on April 2. Its stock price hit its 52-week high of $5.58 on October 3, 2017.

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About Pacific Biosciences

Pacific Biosciences is a biotechnology company that develops sequencing systems that allow researchers to solve genetic problems. Pacific Biosciences developed a novel SMRT (Single Molecule, Real-Time) technology that allows de novo genome assembly to finish the genome for the identification and decoding of genomic structures.

Reason for the increase

Around the world, large-scale genomic projects have been using Pacific Biosciences’ sequencing technology. The Vertebrate Genomes Project (or VGP) chose Pacific Biosciences’ SMRT technology for genetic sequencing.

Some major global projects that use Pacific Biosciences’ SMRT sequencing include the BIRD 10,000 Genomes project, the Bat1K initiative, Pan-Genome Analysis of Sorghum, the FAANG (Functional Annotation of Animal Genomes) Project, and the Open Green Genomes Initiative.

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Financials in a nutshell

In the second quarter, Pacific Biosciences (PACB) reported net revenues of $21.6 million, compared to $20.1 million in the second quarter of 2017. Pacific Biosciences reported a gross profit of $8.9 million and a gross margin of 41.1% in the second quarter. In the second quarter, the company reported net income of -$22.5 million compared to net income of -$25.5 million in the second quarter of 2017.

At the end of the second quarter, Pacific Biosciences had cash, cash equivalents, and investments of $63.5 million, excluding restricted cash, compared to $62.9 million on December 31, 2017.

Pricing of public stock

On September 12, Pacific Biosciences (PACB) announced the pricing of its previously announced public offering of 14,117,647 shares at $4.25 per share to the public. Pacific Biosciences expects the offering to close by September 14.

Analysts’ recommendations for PACB and its peers

Of the seven analysts tracking Pacific Biosciences (PACB) stock in September, two recommended a “strong buy,” and one analyst recommended a “buy.” Four analysts recommended a “hold” rating.

Of the five analysts tracking NanoString Technologies (NSTG) stock in September, ~40.0% recommended a “buy.” Of the 12 analysts tracking Qiagen (QGEN) stock in September, ~42.0% recommended a “buy.”

On September 13, Pacific Biosciences, Nanostring Technologies, and Qiagen had consensus 12-month target prices of $4.72, $14.75, and $39.38, respectively. These target prices indicate an ~8.7% decline for PACB, an ~16.67% decline for NTSG, and ~3.05% growth for QGEN over the next 12 months.

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