Bio-Techne Corp stock split: TECH shares endure tough year after biotech’s pandemic boost
The Bio-Techne (TECH) stock price has dropped close to 35.6% thus far in 2022, as most equities have been hit by negative changes in the macroeconomic backdrop.
Earlier this month, the Board of Directors of the biotech firm declared a cash and stock dividend that will effectively result in a Bio-Techne Corp stock split.
According to the official press release Bio-Techne published on 1 November, the company intends to perform a four-for-one split of its common stock. Stockholders of record by 14 November will receive the three additional shares that the company plans to issue. The stock dividend will be issued on 29 November, and the stock will trade on a split-adjusted basis the day after.
As of 18 November 2022, TECH was trading around the $333 mark, having shed over 35% of its value year-to-date (YTD).
Bio-Techne Corp. (TECH) Stock Price Chart
Here we share further details about the upcoming Bio-Techne stock split and clarify what it can potentially mean for both existing and prospective investors.
What is Bio-Techne (TECH)?
Bio-Techne is a Minneapolis-based biotech company that specialises in the manufacturing and commercialisation of reagents, such as proteins and antibodies, and diagnostics products, like calibrators and immunoassays.
The firm was founded in 1976 as Research and Diagnostics Systems, and renamed to the Bio-Techne Corporation 9 years after it merged with the Techne Corporation.
Bio-Techne’s business is divided into two segments: the Protein Sciences unit, which accounted for 75% of the company’s top line by the end of the 2022 fiscal year; and the Diagnostics and Genomics segment, which was responsible for producing the remaining 25% of the firm’s revenues.
During the 2022 fiscal year, which ended on 30 June, the company produced total revenues of $1.11bn and net income of $272m attributable to its shareholders.
As of March 2022, the company employed approximately 2,700 staff to run its operations across 35 different locations. The CEO is Charles Kummeth, who was appointed to the position in April 2013.
Bio-Techne stock is listed in the New York Stock Exchange (NYSE) under the ticker symbol ‘TECH’.
In the past 10 years, TECH has delivered gains of 432.7%.
During that same period, the tech-heavy US Tech 100 Index (US100) and the S&P 500 Index (US500) delivered gains of 351% and 184.4%, respectively.
What is your sentiment on TECH?
What is a stock split?
A stock split is a corporate action that consists of issuing a certain number of new common shares to existing investors to increase the company’s share count and reduce the price of the instrument in the public markets.
These operations typically have to be approved by the Board of Directors for publicly-traded companies. Their purpose, in theory, is to reduce the price of the instrument to make it more appealing to a larger group of investors.
However, stock splits do not have a material impact on the financial performance or valuation of a business. Stockholders of record at the date established by the issuing company are entitled to receive the additional shares that the company is planning to create.
For example, in a 4-for-1 split, shareholders of record will receive 3 additional shares and own 4 shares instead of 1 after the transaction is completed. In this example, after the stock split is executed, the market price of the security will be divided by 4 the day after the operation is settled.
Bio-Techne stock split story: 2022 will see third TECH split on record
According to the latest Bio-Techne corp news, the company plans to perform a four-for-one stock split via a stock dividend to be issued on 29 November to stockholders of record as of 14 November this year.
Data from StockSplitHistory indicates that Bio-Techne has split its stock two times in the past. The first split occurred in November 1997 when the company’s board approved a 2-for-1 split. Three years later, in December 2000, another 2-for-1 Bio-Techne stock split was approved.
The upcoming split will be the third time that Bio-Techne has divided its stock since the merger between the two companies was completed.
Is another Bio-Techne stock split likely?
As of 18 November 2022, the price of Bio-Techne stock ws standing at $337.84 a share. If a 4-for-1 Bio-Techne stock split is performed today, the post-split price would be $84.46 per share.
This price is still high enough to justify further splits in the future. For example, another 4-for-1 split would take the price to the low 20s based on today’s market price.
At that price, Bio-Techne stock would still meet all of the listing requirements of the New York Stock Exchange (NYSE) and may make the stock more enticing to retail investors who don’t have access to fractional shares or who prefer to own a single stock and cast a vote during the company’s shareholders’ meetings.
The bottom line
Remember that news and data on an upcoming stock split can be valuable in terms of evaluating a company’s performance, but it should not be used in place of your own research.
You should always conduct your own due diligence before trading, looking at the latest news, a wide range of commentary, as well as technical and fundamental analysis.
Past performance does not guarantee future returns. And never trade money you cannot afford to lose.
FAQs
Is Bio-Techne a good investment?
Bio-Techne stock has outperformed broad-market indexes in the past 10 years, including the US Tech 100 and S&P 500.
You should always conduct your own due diligence before trading, looking at the latest news, a wide range of commentary, as well as technical and fundamental analysis. Past performance does not guarantee future returns. And never trade money you cannot afford to lose.
Who owns Bio-Techne?
According to data from GuruFocus, almost 84% of Bio-Techne’s common stock is in the hands of institutions including brokerage firms that hold the stock as custodians for their clients. Charles Kummeth is the most prominent insider shareholder, with 240,403 shares valued at $81.59m, based on the TECH stock price of 17 November 2022.
Is Bio-Techne a public company?
Yes. Bio-Techne stock is listed in the New York Stock Exchange (NYSE) and trades under the ticker symbol TECH.
Markets in this article
Related topics
