Struggling gene-sequencing machine and chemical company Illumina (ILMN) has fallen further into the hands of activist investors. Keith Meister’s Corvex Management hedge fund has a roughly 2.5% stake in ILMN stock, and Meister will join the company’s Board of Directors later this week.
Carl Icahn previously waged a proxy fight with Illumina’s leadership in 2023. He won that battle, with two of his companions joining its Board. That includes current Chairman Stephen MacMillan, who is set to retire and be replaced by Scott Gottlieb.
Interestingly, Meister was a top executive at Icahn’s firm before leaving to create Corvex Management. It’s also worth noting that Corvex Management first took a stake in Illumina in 2023. That’s the same year Icahn beat the company’s leadership in a proxy battle. Meister also serves on the Board of GeneDx, one of Illumina’s customers.
How This Could Affect ILMN Stock
Activist investors increasing their influence on Illumina could benefit the company. Pushing to streamline operations while focusing on its core business might help the company overcome recent hardships. That includes Illumina being added to China’s “unreliable entities” list after President Donald Trump hit the country with tariffs.
Investors don’t appear convinced this is the case, with ILMN stock down 0.25% as of Tuesday morning. That adds to the company’s 34.3% drop year-to-date.
Is ILMN Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus for Illumina is Moderate Buy based on seven Buy, eight Hold, and two Sell ratings over the last three months. With that comes an average price target of $129, a high of $190, and a low of $90. This represents a potential 46.52% upside for ILMN stock.
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