NEW YORK (TheStreet) -- Illumina (ILMN - Get Report) stock is rising 7.39% to $166.87 on heavy trading volume Friday, after the S&P Dow Jones Indices announced that the company will join the S&P 500 Index.
The San Diego-based company develops sequencing and array-based solutions for genetic analysis.
Illumina will replace company Sigma-Aldrich (SIAL) on the index, the S&P Dow Jones Indices said in a statement on Thursday. Sigma-Aldrich is being acquired by Merck KGaA, a German company.
Illumina will join the index after the market close on November 18.
So far today, 2.96 million shares of Illumina have traded, versus its 30-day average of 2.36 million shares.
Separately, TheStreet Ratings team rates ILLUMINA INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate ILLUMINA INC (ILMN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 14.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.17, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for ILLUMINA INC is currently very high, coming in at 70.43%. Regardless of ILMN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ILMN's net profit margin of 21.47% compares favorably to the industry average.
- ILMN has underperformed the S&P 500 Index, declining 16.97% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full analysis from the report here: ILMN