Director of 10x Genomics Picks Up 184% More Stock

Investors who take an interest in 10x Genomics, Inc. (NASDAQ:TXG) should definitely note that the Director, Alan Mateo, recently paid US$11.14 per share to buy US$446k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 184%, potentially signalling some real optimism.

View our latest analysis for 10x Genomics

10x Genomics Insider Transactions Over The Last Year

In fact, the recent purchase by Alan Mateo was the biggest purchase of 10x Genomics shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$11.65 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Alan Mateo was the only individual insider to buy shares in the last twelve months.

In total, 10x Genomics insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does 10x Genomics Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. 10x Genomics insiders own about US$113m worth of shares (which is 8.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At 10x Genomics Tell Us?

It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, 10x Genomics insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 10x Genomics. You'd be interested to know, that we found 1 warning sign for 10x Genomics and we suggest you have a look.

Of course 10x Genomics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.