Affymetrix, Inc. (AFFX) Shares Jump Nearly 50% After Acquisition by Thermo Fisher (TMO) is Announced


This weekend, shares of Affymetrix, Inc. (NASDAQ:AFFX) are sitting pretty, at 49.84% higher than it’s closing price on Friday. This comes after it was announced that Thermo Fisher (NYSE:TMO) has reached an agreement to acquire the DNA microarray manufacturer for an astounding $1.3 billion.

Trading for shares of Affymetrix, Inc. (NASDAQ:AFFX) was halted latest in the day Friday, prior to the announced news. According to the agreement, Thermo Fisher (NYSE:TMO) will pay $14 per share in cash for Affymetrix, which is significantly higher than Friday’s closing price of $9.21 per share.

Thermo Fisher expects to be able to cut overlapping costs by close to $70 million by year three after this deal is complete.

AFFX stock decreased 1.39% or $0.13 on January 8, hitting $9.21. About 596,397 shares traded hands or 27.66% up from the average. AFFX has declined 22.21% since June 5, 2015 and is downtrending. It has underperformed the S&P500 by 16.36%.

From a total of 2 analysts covering Affymetrix (NASDAQ:AFFX) stock, 1 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $13 while the lowest target price is $9.50. The mean of all analyst targets is $10.83 which is 17.59% above today’s ($9.21) stock price. Affymetrix was the topic of 3 analyst reports since August 27, 2015 according to the firm StockzIntelligence Inc. Cantor Fitzgerald initiated shares on August 27 with a “Buy” rating.

The institutional sentiment decreased to 0.9 in Q2 2015. It’s down 0.84, from 1.74 in 2015Q2. The ratio worsened, as 29 funds sold all their Affymetrix, Inc. shares they owned while 61 reduced their positions. 25 funds bought stakes while 56 increased their total positions. Institutions now own 90.91 million shares which is 11.55% more than the previous share count of 81.50 million in 2015Q2.

Pura Vida Investments Llc holds 1.36% of its total portfolio in Affymetrix, Inc., equating to 280,000 shares. Orbimed Advisors Llc owns 7.51 million shares representing 0.65% of their total US portfolio. Moreover, Fic Capital Inc has 0.58% of their total portfolio invested in the company, equating to 145,000 shares. The New York-based Levin Capital Strategies L.P. has a total of 0.46% of their portfolio invested in the stock. Spark Investment Management Llc, a New York-based fund reported 334,800 shares owned.

Since March 26, 2015, the stock had 0 insider purchases, and 2 sales for a total of $447,999 in net activity. Trice Robert H sold 2,500 shares worth $22,500. Witney Frank sold 37,991 shares worth $425,499. Weber David A sold 33,879 shares worth $406,548. Last Andrew J. sold 110,000 shares worth $1.41 million.

Affymetrix, Inc. is a provider of life science products and molecular diagnostic products that enable parallel analysis of biological systems at the gene, protein and cell level. The company has a market cap of $746.89 million. The Firm sells its products to genomic research centers, academic institutions, government and private laboratories, as well as pharmaceutical, diagnostic and biotechnology companies. It has 66.38 P/E ratio. The Firm maintains sales and distribution activities across the United States, Europe, Latin America and Asia.