What Happened?
Shares of biotech company 10x Genomics (NASDAQ: TXG) jumped 2.1% in the morning session after Piper Sandler initiated coverage on the stock with a Neutral rating and a $15.00 price target.
While the rating is neutral, the price target suggested notable upside from the stock's recent trading price of $12.59. The research firm highlighted 10x Genomics' position as a leader in the single-cell market, citing its large install base and technological advantages. This new coverage follows other positive developments, including a significant second-quarter earnings surprise where the company's earnings per share far surpassed forecasts.
Additionally, at a recent Morgan Stanley conference, 10x Genomics confirmed the completion of its commercial restructuring and expressed optimism about the long-term potential of the single-cell market, reinforcing a positive outlook for the company's strategic position.
After the initial pop the shares cooled down to $12.77, up 1.5% from previous close.
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What Is The Market Telling Us
10x Genomics’s shares are extremely volatile and have had 47 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 about 21 hours ago when the stock dropped 5.6% on the news that markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading. Stocks rose in the morning session after an unexpected drop in the Producer Price Index (PPI) for August signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut. The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% the previous month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.
10x Genomics is down 10% since the beginning of the year, and at $12.77 per share, it is trading 45.6% below its 52-week high of $23.48 from September 2024. Investors who bought $1,000 worth of 10x Genomics’s shares 5 years ago would now be looking at an investment worth $102.16.
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