Insider Sellers Might Regret Selling 10x Genomics Shares at a Lower Price Than Current Market Value

Even though 10x Genomics, Inc. (NASDAQ:TXG) has fallen by 12% over the past week , insiders who sold US$1.3m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$26.19 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for 10x Genomics

10x Genomics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Serge Saxonov, for US$205k worth of shares, at about US$44.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$14.21. So it may not tell us anything about how insiders feel about the current share price.

In the last year 10x Genomics insiders didn't buy any company stock. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At 10x Genomics Have Sold Stock Recently

The last three months saw significant insider selling at 10x Genomics. In total, insiders dumped US$171k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does 10x Genomics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that 10x Genomics insiders own 8.4% of the company, worth about US$144m. 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 even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 10x Genomics. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of 10x Genomics.

But note: 10x Genomics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.