What Happened?
Shares of life sciences company Bio-Techne (NASDAQ: TECH) fell 4.8% in the afternoon session after the company presented a cautious outlook at the Baird Global Healthcare Conference, highlighting significant market challenges despite some areas of growth.
During the presentation, Bio-Techne reported 3% organic growth for the fourth quarter, driven by double-digit growth in its pharma segment and in China. However, this positive news was overshadowed by hurdles in other key areas. The company noted a decline in the U.S. academic market and pointed to unpredictability in the biotech sector, which is suffering from "dramatic funding declines." Management stated it is navigating these uncertain market conditions with a cautious approach, which appears to have concerned investors about the company's near-term performance.
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What Is The Market Telling Us
Bio-Techne’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock dropped 3.3% on the news that the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs. The decline was not driven by company-specific news but rather widespread negative sentiment as investors returned from the Labor Day holiday. Major U.S. indexes, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, all tumbled. The downturn was fueled by a mix of factors, including rising Treasury yields and fresh uncertainty after a court decision ruled most of President Trump's tariffs illegal. Although the tariffs remain in place pending appeal, the news contributed to market turbulence on the first trading day of what is historically the stock market's most challenging month.
Bio-Techne is down 28.6% since the beginning of the year, and at $51.01 per share, it is trading 36.5% below its 52-week high of $80.36 from September 2024. Investors who bought $1,000 worth of Bio-Techne’s shares 5 years ago would now be looking at an investment worth $828.40.
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