New York, Jan 13, 2026, 15:57 EST — Regular session
Penumbra (NYSE: PEN) shares dropped Tuesday following comments from CEO Adam Elsesser about shifting the company’s manufacturing base. The stock slid 5.2% to $302.70 in late trading after hitting a low of $290.42 earlier. Elsesser told a conference that “All of our products today are manufactured in California. That’s going to change.” (Seeking Alpha)
The comment came as investors digested new insights from the J.P. Morgan Healthcare Conference in San Francisco, an annual event where executives typically lay out their vision for the coming year. For a stock trading close to recent peaks, even subtle clues about costs, capacity, or execution tend to move markets quickly. (Simply Wall St)
The broader market showed weakness as well. The S&P 500 proxy SPY fell around 0.4%, while the Nasdaq 100 tracker QQQ dropped by a similar margin.
Health-care stocks struggled, with the sector ETF XLV falling roughly 0.6%. Penumbra stood out as one of the bigger losers within the group.
Penumbra’s drop pushed it further below its 52-week peak of $325.02, with shares fluctuating between $290 and $317.77 on Tuesday, according to MarketBeat. The company’s market cap hovered around $11.8 billion, trading at a P/E ratio near 72. Analysts have set a consensus price target of $340.40. (MarketBeat)
Elsesser told the conference crowd that this was about the company’s “10th or 11th time” presenting since going public. He also noted Penumbra was founded in 2004. (GuruFocus)
Penumbra specializes in devices for thrombectomy, a minimally invasive technique to extract blood clots. The company focuses on treating ischemic stroke, pulmonary embolism, and acute limb ischemia, according to its statements. (Penumbra, Inc)
Traders are zeroing in on a key question: does moving away from a California-only manufacturing setup mean new plants, outsourcing, or adding a second in-house site? The immediate impact is unclear. Such a shift could boost future margins, but it might also just rack up transition expenses.
There’s a downside risk too. Manufacturing shifts often trigger supply disruptions, quality-control issues, and increased costs before any savings materialize. A stock valued for steady growth can quickly stumble when faced with uncertainty.
Looking ahead, earnings stand out as the next clear catalyst. Nasdaq’s earnings calendar lists Feb. 17 as the expected report date, but the company hasn’t officially confirmed that yet.
