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Why Is 10x Genomics (TXG) Stock Soaring Today

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

TXG Cover Image

What Happened?

Shares of biotech company 10x Genomics (NASDAQ: TXG) jumped 6.8% in the morning session after Barclays boosted its price target to $40 per share and maintained an Overweight rating on the stock. 

The bank noted renewed investor appetite for life-science tools and expects the company to report at least steady second-quarter results. The positive sentiment was also supported by 10x Genomics' announcement that it would purchase Proteintech Genomics. In addition, the company revealed a new research collaboration with the Cleveland Clinic. Both moves signal a push to broaden its technology and customer reach.

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What Is The Market Telling Us

10x Genomics’s shares are extremely volatile and have had 51 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 biggest move we wrote about over the last year was 8 months ago when the stock gained 14.3% on the news that the company reported third-quarter financial results that beat Wall Street's expectations and provided an upbeat revenue forecast for the fourth quarter. 

For the third quarter, revenue came in at $149 million, exceeding the consensus estimate of $142.4 million. The company's loss per share of $0.22 was also narrower than the $0.28 loss analysts had predicted. Looking ahead, 10x Genomics projected fourth-quarter revenue to be in the range of $154 million to $158 million. The midpoint of this guidance surpassed analysts' forecasts, signaling confidence in its performance. Overall, the strong results and positive outlook appeared to drive investor optimism.

10x Genomics is up 105% since the beginning of the year, and at $34.10 per share, it has set a new 52-week high. Despite the year-to-date gain, investors who bought $1,000 worth of 10x Genomics’s shares 5 years ago would now be looking at only $175.73.

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