Should You Now Consider Selling Your Illumina (ILMN) Shares?

·2 min read

Ensemble Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund has focused on economic and COVID-related commentary. The fund also covered the notable detractors and contributors to its fourth-quarter investment performance and offered a discussion of an aspect of its investment strategy. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Ensemble Capital Management, in its Q4 2021 investor letter, mentioned Illumina, Inc. (NASDAQ: ILMN) and discussed its stance on the firm. Illumina, Inc. is a San Diego, California-based biotechnology company with a $57.1 billion market capitalization. ILMN delivered a -3.81% return since the beginning of the year, while its 12-month returns are down by -9.92%. The stock closed at $365.94 per share on January 21, 2022.

Here is what Ensemble Capital Management has to say about Illumina, Inc. in its Q4 2021 investor letter:

"Notable detractors from our performance during the fourth quarter came from our investments in Illumina. Illumina continued to underperform the market for two reasons in our view despite strong fundamentals with revenue growth expected to come in at 40% in 2021 and 17% in 2022. The first is continued uncertainty by the market on regulatory acceptance of the GRAIL acquisition which brings the most advanced and broadest 50 cancer screening tests via a single blood draw. The second headwind for the stock has been a market sentiment shift away from all things biotech, with indicators like the S&P Biotech Index down 11% in the quarter and poster child Moderna down 34%. Illumina’s stock was down 6% during the quarter."


Our calculations show that Illumina, Inc. (NASDAQ: ILMN) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. ILMN was in 55 hedge fund portfolios at the end of the third quarter of 2021, compared to 51 funds in the previous quarter. Illumina, Inc. (NASDAQ: ILMN) delivered a -10.56% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on ILMN in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.