Have 10x Genomics Insiders Been Selling Stock?

We'd be surprised if 10x Genomics, Inc. (NASDAQ:TXG) shareholders haven't noticed that the CFO, Treasurer, Adam Taich, recently sold US$308k worth of stock at US$13.79 per share. That sale was 19% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At 10x Genomics

Over the last year, we can see that the biggest insider purchase was by Independent Director Alan Mateo for US$446k worth of shares, at about US$11.14 per share. We do like to see buying, but this purchase was made at well below the current price of US$14.28. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for 10x Genomics

I will like 10x Genomics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of 10x Genomics

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. 10x Genomics insiders own about US$143m worth of shares (which is 8.2% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The 10x Genomics Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 10x Genomics. Every company has risks, and we've spotted 3 warning signs for 10x Genomics (of which 1 is concerning!) you should know about.

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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.