IDEXX Laboratories, Inc. (NASDAQ:IDXX) is a global leader in the development and distribution of veterinary, livestock and poultry, dairy, and water testing products. The company operates through three segments: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy.
Recently, Welch & Forbes LLC revealed that they have trimmed their holdings in shares of IDEXX Laboratories by 1.0% in the first quarter of this year. According to the institutional investor’s most recent 13F filing with the Securities and Exchange Commission (SEC), they now own 174,414 shares of IDEXX Laboratories’ stock after selling 1,843 shares during the period. The worth of Welch & Forbes LLC’s ownership was approximately $87,221,000 at the end of the most recent quarter. This news comes as StockNews.com initiated coverage on shares of IDEXX Laboratories on May 18th with a “buy” rating added for the company.
IDEXX has been receiving attention from analysts across various firms worldwide. Morgan Stanley increased their price target on IDXX shares from $543.00 to $590.00 and gave a positive recommendation for investors to be “overweight” on Thursday last month itself. In conclusion based on data from Bloomberg, IDXX has an average rating of “Moderate Buy” among analysts who cover it along with having an average price target of $527.86.
The consistent growth model which is keeping IDXX favorable among institutions is because of its innovative approach to develop cutting-edge diagnostic tools using advanced algorithms that produce accurate diagnoses helping doctors save lives while minimizing costs associated with prolonged illnesses or treatment errors.
Furthermore for animal infections which cannot be treated by antibiotics or other traditional therapies since antibiotics are unable to identify them quickly enough due big a longer lead time to detect them than required which gets countered by their technology platforms using Artificial Intelligence (AI) in predicting genetic patterns of animals using clinical data points to create precision models focused upon highly specialized pathogens & disease causing organisms thereby improving the response time of doctors and their staff to treat them properly with precision, reducing mortality and promoting healthcare cost savings in the long run.
The company’s unique business model & advanced technological solutions have helped it remain one of the most prosperous investment opportunities for institutional investors such as Welch & Forbes LLC. They believe that IDXX Laboratories is a strong candidate for growth in today’s dynamic economic scenario. With various analyst reports backing up its potential favorably and healthy earnings releases, IDXX has been surging on wall street bit by bit, leaving investors hopeful for further growth and development.
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Institutional Investors Show Strong Interest in IDEXX Laboratories Despite Insider Sales
IDEXX Laboratories, Inc. has been making headlines with the recent sale of shares by its insiders, including director Jonathan W. Ayers who sold 10,000 shares at an average price of $489.23 in May and EVP Michael Lane who sold 1,000 shares at an average price of $484.00 in early May. The company operates in three segments primarily for the veterinary, livestock, poultry, and water testing markets globally: Companion Animal Group; Water Quality Products; and Livestock, Poultry and Dairy. Despite these sales by insiders, institutional investors have continued to show strong interest in IDEXX Laboratories with several hedge funds increasing their holdings in it recently.
Moneta Group Investment Advisors LLC grew its stake in the company dramatically during the fourth quarter by 121,647.2%, amassing a holding of 7,447,279 shares worth $3.038 billion after acquiring an additional 7,441,162 shares in Q4 alone. Norges Bank is another notable institutional investor that recently purchased new stakes valued at approximately $336 million during the same period.
BlackRock Inc., Alliancebernstein L.P., and Morgan Stanley also lifted their positions in IDEXX Laboratories significantly during Q3-Q4 2020 with BlackRock now owning more than 8.79 million shares worth $2.86 billion and Alliancebernstein L.P holding about 3.24 million shares worth $1.32 billion.
IDEXX Laboratories’ stock opened at $487.78 on June 25th recording its highest level ever at $515.79 over a twelve-month period while maintaining a twelve-month low of $317.06 giving it a market capitalization of over $40 billion as per mid-June statistics.
The company reported impressive quarterly earnings results on May 2nd this year posting earnings per share (EPS) valued at $2.55 beating analysts’ expectations totaling $2.38 by 0.17. IDEXX Laboratories had a net margin of 20.38% and a return on equity of 117.37% with projected EPS for this year standing at an impressive 9.65.
Overall, although insiders have been selling shares, institutional investors hold over 85% of IDEXX Laboratories stock indicating their continued faith in its potential growth despite the impact of the COVID-19 pandemic on the veterinary health care sector it primarily serves.
