10x Genomics (NASDAQ:TXG) Shares Down 7.1% - Time to Sell?

Key Points

• 10x Genomics shares fell 7.1% to about $74.90 in mid-day trading, with volume 71% below the average session level. The company has a $9.48 billion market capitalization and remains unprofitable, with analysts forecasting a full-year loss of $0.75 per share.
• Analyst sentiment is mixed: six analysts rate the stock a Buy, eleven rate it Hold, and one rates it Sell. The consensus rating is Hold, with a target price of $63.27—below the reported trading price—despite some firms setting targets as high as $110.
• The latest quarter exceeded expectations on both earnings and revenue, but revenue declined 12.7% year over year and the company reported negative margins. Insiders sold roughly $11.8 million of stock during the last quarter, while institutional investors own 84.68% of the shares.

10x Genomics (NASDAQ:TXG - Get Free Report)'s share price dropped 7.1% during mid-day trading on Monday. The stock traded as low as $75.63 and last traded at $74.9030. 847,170 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 2,967,076 shares. The stock had previously closed at $80.65.

Wall Street Analysts Forecast Growth

TXG has been the topic of a number of analyst reports. Barclays upped their target price on 10x Genomics from $52.00 to $110.00 and gave the company an "overweight" rating in a research note on Wednesday, October 7th. Stephens increased their price target on 10x Genomics from $50.00 to $65.00 and gave the stock an "overweight" rating in a report on Wednesday, August 12th. Argus initiated coverage on 10x Genomics in a research note on Monday, September 28th. They set a "buy" rating and a $110.00 price target for the company. Leerink Partners boosted their price objective on 10x Genomics from $40.00 to $90.00 and gave the company a "market perform" rating in a report on Tuesday, September 29th. Finally, UBS Group assumed coverage on 10x Genomics in a report on Wednesday, September 9th. They set a "neutral" rating and a $68.00 price objective for the company. Six investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $63.27.

10x Genomics Stock Down 9.8%

The firm has a market capitalization of $9.48 billion, a PE ratio of -123.46 and a beta of 1.99. The company's 50-day simple moving average is $68.66 and its 200 day simple moving average is $43.83.

10x Genomics (NASDAQ:TXG - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.14) EPS for the quarter, beating the consensus estimate of ($0.24) by $0.10. 10x Genomics had a negative return on equity of 9.33% and a negative net margin of 12.18%. The firm had revenue of $151.04 million during the quarter, compared to analyst estimates of $146.67 million. During the same quarter in the prior year, the business posted $0.28 EPS. The business's revenue for the quarter was down 12.7% compared to the same quarter last year. On average, sell-side analysts forecast that 10x Genomics will post -0.75 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Benjamin Hindson sold 13,818 shares of the stock in a transaction on Monday, August 24th. The shares were sold at an average price of $63.02, for a total transaction of $870,810.36. Following the sale, the insider directly owned 488,182 shares of the company's stock, valued at approximately $30,765,229.64. This represents a 2.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Shehnaaz Suliman sold 5,723 shares of the firm's stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $81.19, for a total value of $464,650.37. Following the sale, the director owned 23,792 shares in the company, valued at $1,931,672.48. This trade represents a 19.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 179,333 shares of company stock worth $11,810,070. Corporate insiders own 8.84% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Quantinno Capital Management LP boosted its position in 10x Genomics by 16.0% during the first quarter. Quantinno Capital Management LP now owns 5,411,761 shares of the company's stock worth $114,892,000 after purchasing an additional 744,558 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of 10x Genomics by 34.6% in the first quarter. Dimensional Fund Advisors LP now owns 2,042,950 shares of the company's stock valued at $43,357,000 after buying an additional 525,369 shares in the last quarter. Casdin Capital LLC purchased a new position in shares of 10x Genomics in the fourth quarter valued at $22,834,000. Clough Capital Partners L P purchased a new position in shares of 10x Genomics in the fourth quarter valued at $9,955,000. Finally, Quantedge Capital Pte Ltd raised its stake in shares of 10x Genomics by 104.2% during the 1st quarter. Quantedge Capital Pte Ltd now owns 416,553 shares of the company's stock worth $8,843,000 after buying an additional 212,600 shares during the last quarter. 84.68% of the stock is owned by institutional investors and hedge funds.

10x Genomics Company Profile

10x Genomics, Inc is a life sciences technology company that develops tools for analyzing biological systems at high resolution. Its platforms are used by academic and government research institutions, pharmaceutical and biotechnology companies, and other organizations studying genomics, cell biology, immunology, neuroscience, and disease mechanisms.

The company's product portfolio includes the Chromium platform for single-cell and other multiomics analyses, the Visium platform for spatial analysis of tissue, and the Xenium platform for high-plex in situ analysis of gene expression.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.