If You Invested $1000 in Illumina 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Illumina (ILMN) ten years ago? It may not have been easy to hold on to ILMN for all that time, but if you did, how much would your investment be worth today?
Illumina's Business In-Depth
With that in mind, let's take a look at Illumina's main business drivers.
San Diego, CA.-based Illumina Inc. is a life sciences company, which provides tools and integrated systems for analysis of genetic variation and function. Using its proprietary technologies, the company provides innovative sequencing- and array-based solutions for genotyping, copy number variation analysis, methylation studies, and gene expression profiling of DNA and RNA.
Its customers include leading genomic research centers, academic institutions, government laboratories, hospitals and reference laboratories as well as pharmaceutical, biotechnology, agrigenomics, commercial molecular diagnostic and consumer genomics companies.
Illumina generates revenue from two segments – Product and Service.
Product revenues (84.4% of total revenues in 2020; down 6.6% from 2019) are primarily attributed to the partnerships and collaborations to develop distributable clinical in-vitro diagnostics (IVDs) for Illumina sequencers. Product revenues consist of sales proceeds from the Consumables and Instruments segment used in genetic analysis. This includes reagents, flow cells, and BeadChips) based on the company’s proprietary technologies.
Service revenues (15.6%, down 17.9%) include genotyping and sequencing services as well as instrument maintenance contracts.
Next-Generation Sequencing (NGS)
Illumina’s portfolio of sequencing platforms represents a family of systems that are designed to meet the workflow, output, and accuracy demands of a full range of sequencing applications. The company’s MiSeq sequencing system is a low-cost desktop sequencing system that provides individual researchers with rapid turnaround time, high accuracy and streamlined workflow. NextSeq 500, launched in January 2014, provides flexibility from whole genome sequencing to targeted panels in a desktop platform. The HiSeq 2500 sequencing system allows customers to sequence an entire human genome in approximately a day.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Illumina a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $9,582.05, or an 858.20% gain, as of August 12, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 279.29% and the price of gold went up -3.51% over the same time frame.
Looking ahead, analysts are expecting more upside for ILMN.
Illumina exited the second quarter of 2021 with better-than-expected results. The year-over-year improvement in segmental revenues across all geographies significantly exceeded the company’s expectations. In clinical markets, oncology, reproductive health and genetic disease testing are expanding as reimbursement coverage increases and more sequencing applications enter the clinic. Solid long-term growth potential in the oncology space is encouraging. The raised 2021 guidance is indicating that this bullish trend will continue through the rest of the year. In the past six months, Illumina has outperformed its industry. Yet, a tough funding climate and stiff competition remain concerns. Rising costs are building pressure on the bottom line. Further, the GRAIL acquisition-related complications are weighing on the stock.
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