What Happened?
Shares of life sciences company Azenta (NASDAQ: AZTA) jumped 4.2% in the afternoon session after a report revealed that the White House plans to pitch a two-year extension of Obamacare subsidies.
The proposal would extend subsidies set to expire at the end of the year, with new eligibility limits for individuals with incomes up to 700% of the federal poverty line. These subsidies, a key part of the Affordable Care Act (ACA), help lower the cost of health insurance for consumers, making them crucial for insurers focused on the ACA marketplace. An extension would likely support sustained enrollment, securing a key revenue stream for these companies.
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What Is The Market Telling Us
Azenta’s shares are very volatile and have had 29 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 3 days ago when the stock gained 14.9% on the news that it reported third-quarter 2025 results that featured better-than-expected revenue and profitability.
The company's revenue grew 5.5% year on year to $159.2 million, surpassing Wall Street's forecasts. Profitability also showed positive signs, with adjusted EBITDA beating expectations and the operating margin improving to 1.2% from a negative 2% in the same quarter last year. While the results were not perfect, as adjusted earnings per share of $0.19 was only in line with consensus and free cash flow was negative, investors appeared to focus on the top-line growth and margin expansion. This suggests optimism that the company's operational performance is on an upward trend.
Azenta is down 26.7% since the beginning of the year, and at $36.70 per share, it is trading 33% below its 52-week high of $54.75 from January 2025. Investors who bought $1,000 worth of Azenta’s shares 5 years ago would now be looking at an investment worth $526.54.
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