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Minneapolis, Minnesota-based Bio-Techne Corporation (TECH) develops, manufactures, and sells life science reagents, instruments, and services for the research, diagnostics, and bioprocessing markets. With a market cap of $12.2 billion, Bio-Techne operates through Protein Sciences, and Diagnostics and Genomics segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Bio-Techne fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the biotechnology industry. Its operations span 34 locations across the United States, Europe, and Indo-Pacific.
Bio-Techne touched its 52-week high of $85.57 on May 15 and is now trading 9.5% below that peak. TECH has gained 3.9% over the past three months, lagging behind the Health Care Select Sector SPDR Fund’s (XLV) 4.8% gains during the same time frame.
Over the longer term, TECH stock recorded marginal gains in 2024 and gained 11.6% over the past year lagging behind XLV’s 13% gains on a YTD basis and 18.4% returns over the past 52 weeks.
To confirm the recent bullish trend, TECH has been trading above its 50-day and 200-day moving averages since the start of May. However, it has observed substantial fluctuations over the past months.
Shares of Bio-Techne plummeted 9.5% after the release of its fiscal 2024 earnings on Aug. 7. Although the company reported a 2% topline year-over-year growth to $1.2 billion due to rising costs, its margins and profits took a sharp hit. The biotech giant’s net margin shrunk by 12.5% to 13.4%, resulting in a 47.1% drop in comprehensive income to $155.9 million. The drop in profits was primarily due to a 23.3% increase in selling, general and admin expenses, reaching $466.4 million, raising concerns about the company's efficiency and cost management capabilities.
On a positive note, Bio-Techne witnessed an improvement in cash flows, with its cash from operations rising by 17.5% to $299 million.
Bio-Techne’s competitor, Denali Therapeutics Inc. (DNLI), gained 36.9% over the past year and 41.3% in 2024, outperforming TECH.
Among the 13 analysts covering the TECH stock, the consensus rating is a “Strong Buy.” The mean price target of $82.58 represents a potential upside of 6.2% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
