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Gene-sequencing giant Illumina ( ILMN ) was trading down sharply Tuesday after it announced late Monday that longtime CEO Jay Flatley was leaving his post. Flatley plans to become executive chairman of Illumina on July 5, at which point the current president, Francis deSouza, will become CEO. Flatley has headed Illumina since 1999, shortly after its founding, and has overseen its debut on the stock market and its rise to a multibillion-dollar company. DeSouza joined in 2013 from Symantec ( SYMC ), which had acquired his startup IMlogic. BTIG analyst Dane Leone wrote that deSouza was generally expected to succeed Flatley, but perhaps not yet. “Mr. deSouza has been prominently featured within the investor community over the past 12 months, and his ascension to be Jay’s successor is unlikely to be a surprise for most investors,” Leone wrote in a research note. “However, we do think that the timing of the transition is sooner than expected.” Evercore ISI analyst Ross Muken wrote that continuity is likely the theme of the transition. “We believe that this transition was long telegraphed to the market and should come as no surprise to shareholders,” Muken wrote in his research note. “With respect to Jay, the executive chairman title also likely signals his continued close involvement in the business, albeit the need for him to focus on bigger picture concepts . . . vs. day to day execution.” Nonetheless, Illumina stock was down more than 4% in midday trading on the stock market today , near 155. The stock had been recovering from a four-month low of 130.37 hit on Feb. 8, but retains a dismal IBD Relative Strength Rating of 29 despite a strong EPS Rank of 79. Scalper1 News
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