10x Genomics (NASDAQ:TXG) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• 10x Genomics shares saw a significant gap up, opening at $14.49 after reporting better than expected quarterly earnings with an EPS of $0.28 compared to the consensus estimate of ($0.35).
• Analysts have mixed opinions on the stock, with Stephens reaffirming an "overweight" rating and a $14 price target, while Goldman Sachs downgraded their target from $7.50 to $6.50.
• Insider sales were reported, including CEO Serge Saxonov selling 9,343 shares, indicating a decrease in their ownership, while corporate insiders hold approximately 9.39% of the stock.

10x Genomics (NASDAQ:TXG - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $12.80, but opened at $14.49. 10x Genomics shares last traded at $11.97, with a volume of 953,757 shares traded.

The company reported $0.28 earnings per share for the quarter, topping analysts' consensus estimates of ($0.35) by $0.63. 10x Genomics had a negative return on equity of 13.15% and a negative net margin of 13.13%. The company had revenue of $172.91 million during the quarter, compared to the consensus estimate of $139.36 million. During the same quarter last year, the firm earned ($0.32) earnings per share. The company's revenue was up 12.9% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on TXG. Weiss Ratings reissued a "sell (e+)" rating on shares of 10x Genomics in a report on Tuesday, July 29th. Canaccord Genuity Group decreased their price target on 10x Genomics from $18.00 to $15.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. JPMorgan Chase & Co. dropped their target price on shares of 10x Genomics from $12.00 to $9.00 and set a "neutral" rating for the company in a research report on Friday, May 9th. Stephens reiterated an "overweight" rating and set a $14.00 price target on shares of 10x Genomics in a research report on Thursday, May 15th. Finally, UBS Group set a $13.00 price objective on shares of 10x Genomics and gave the company a "neutral" rating in a research note on Friday. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and seven have given a buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $13.50.

Insider Buying and Selling at 10x Genomics

In other news, insider Benjamin J. Hindson sold 7,485 shares of the business's stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $8.30, for a total transaction of $62,125.50. Following the sale, the insider directly owned 448,374 shares in the company, valued at approximately $3,721,504.20. The trade was a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Serge Saxonov sold 9,343 shares of the business's stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $8.30, for a total value of $77,546.90. Following the sale, the chief executive officer owned 1,083,625 shares in the company, valued at approximately $8,994,087.50. This trade represents a 0.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 20,872 shares of company stock worth $173,238 over the last 90 days. Insiders own 9.39% of the company's stock.

Institutional Trading of 10x Genomics

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Intech Investment Management LLC grew its holdings in shares of 10x Genomics by 139.6% during the second quarter. Intech Investment Management LLC now owns 52,951 shares of the company's stock worth $613,000 after purchasing an additional 30,850 shares during the last quarter. Creative Planning boosted its holdings in 10x Genomics by 84.2% in the second quarter. Creative Planning now owns 55,237 shares of the company's stock valued at $640,000 after acquiring an additional 25,252 shares during the last quarter. Geode Capital Management LLC boosted its holdings in 10x Genomics by 41.2% in the second quarter. Geode Capital Management LLC now owns 2,650,819 shares of the company's stock valued at $30,701,000 after acquiring an additional 773,203 shares during the last quarter. PNC Financial Services Group Inc. boosted its holdings in 10x Genomics by 73.8% in the second quarter. PNC Financial Services Group Inc. now owns 8,951 shares of the company's stock valued at $104,000 after acquiring an additional 3,801 shares during the last quarter. Finally, Allworth Financial LP boosted its holdings in 10x Genomics by 150.4% in the second quarter. Allworth Financial LP now owns 2,271 shares of the company's stock valued at $26,000 after acquiring an additional 1,364 shares during the last quarter. 84.68% of the stock is currently owned by institutional investors.

10x Genomics Price Performance

The company has a fifty day moving average of $11.91 and a 200 day moving average of $10.76. The firm has a market capitalization of $1.51 billion, a P/E ratio of -17.56 and a beta of 2.03.

About 10x Genomics

10x Genomics, Inc, a life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in the America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company provides chromium, chromium connect, and chromium controller instruments, microfluidic chips, slides, reagents, and other consumables products.