Neha Panjwani
2 min read
In This Article:
Bio-Techne Corporation (TECH), headquartered in Minneapolis, Minnesota, develops, manufactures, and sells life science reagents, instruments, and services for the research, diagnostics, and bioprocessing markets. Valued at $7.7 billion by market cap, the company specializes in proteins, cytokines, growth factors, immunoassays and small molecules.
Companies worth $2 billion or more are generally described as “mid-cap stocks,” and TECH perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the biotechnology industry. TECH's commitment to innovation, strategic acquisitions, and global presence positions it for continued success. With a strong domestic foothold and international expansion opportunities, TECH is well-equipped to maintain its market share and drive growth.
-
Super Micro Computer Just Struck a Deal with Ericsson. Should You Buy SMCI Stock Here?
-
Broadcom Just Got a New Street-High Price Target. Should You Buy AVGO Stock Here?
Despite its notable strength, TECH slipped 40.2% from its 52-week high of $83.62, achieved on Jul. 31, 2024. Over the past three months, TECH stock fell 18.1%, considerably underperforming the Nasdaq Composite’s ($NASX) 9.5% gains during the same time frame.
In the longer term, shares of TECH dipped 30.6% on a YTD basis and fell 32.9% over the past 52 weeks, significantly underperforming NASX’s YTD gains of 3.1% and 13.8% returns over the last year.
To confirm the bearish trend, TECH has been trading below its 200-day moving average since early February. However, the stock has been trading above its 50-day moving average since early June, with a minor fluctuation.
Bio-Techne faces headwinds from macroeconomic volatility, including rising raw materials and labor costs, as well as global tariffs impacting margins. The company is also experiencing industry-wide spending constraints, reduced customer projects, and extended sales cycles, particularly in China where its instrument business is struggling. Additionally, proposed NIH funding cuts have introduced uncertainty, although management believes the likelihood of such cuts is low.
On May 7, TECH shares closed up more than 2% after reporting its Q3 results. Its adjusted EPS of $0.56 beat Wall Street expectations of $0.51. The company’s revenue was $316.2 million, surpassing Wall Street forecasts of $315.2 million.