Serge Saxonov, the Chief Executive Officer of 10x Genomics, Inc. (NASDAQ:TXG), recently reported the sale of 6,693 shares of Class A common stock. The shares were sold on November 22 at an average price of $13.6878 per share, resulting in a total transaction value of approximately $91,612. This transaction was conducted to cover tax withholding obligations related to the vesting of restricted stock units.
Following the sale, Saxonov's direct ownership stands at 872,574 shares. Additionally, he holds shares indirectly through various trusts, including the Andromeda Trust, Sirius Trust, Y/S Descendants' Trust, and Y/S Pot Trust, for which he serves as trustee. These indirect holdings amount to a total of 236,717 shares.
This transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, which is a standard process for company insiders to report such trades.
In other recent news, 10x Genomics reported a slight revenue dip of 1% year-over-year in the third quarter of 2024 due to disruptions from sales restructuring and cautious customer spending. Despite these challenges, the company launched new products aimed at making single-cell analysis more accessible and reported a 10% increase in consumables revenue. The firm's CEO, Serge Saxonov, expressed confidence in the long-term potential of their technologies, particularly in oncology and biopharma applications. In terms of future projections, the company expects full-year revenue to fall between $595 million and $605 million, marking a 3% decrease from the previous year. However, with positive reorder trends and strong adoption of new products like Visium CytAssist and Xenium 5K, 10x Genomics anticipates a return to favorable revenue growth in the second half of 2024 if macroeconomic conditions stabilize. Notably, Q3 total revenue saw a 1% decline, with instruments revenue down by 45%. Despite these headwinds, the company is hopeful that commercial restructuring and new sales hires will be fully ramped by mid-2024, enhancing organizational effectiveness. These are the recent developments in 10x Genomics.
InvestingPro Insights
To provide additional context to the recent insider transaction at 10x Genomics, Inc. (NASDAQ:TXG), let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, 10x Genomics has a market capitalization of $1.85 billion. Despite the recent share sale by CEO Serge Saxonov, the company's stock has shown a significant return of 8.57% over the last week, according to InvestingPro Data. This short-term gain comes against a backdrop of volatility, as highlighted by one of the InvestingPro Tips, which notes that the stock's price movements are quite volatile.
It's worth noting that the company's financial health presents a mixed picture. On the positive side, an InvestingPro Tip indicates that 10x Genomics holds more cash than debt on its balance sheet, suggesting a strong liquidity position. This is further supported by another tip stating that the company's liquid assets exceed short-term obligations.
However, investors should be aware that 10x Genomics is not currently profitable. The company reported a negative operating income of $171.62 million for the last twelve months as of Q3 2024. This aligns with an InvestingPro Tip that points out the company has not been profitable over the last twelve months, and analysts do not anticipate profitability this year.
Despite these challenges, 10x Genomics has shown some positive trends. The company's revenue for the last twelve months stood at $629.74 million, with a revenue growth of 6.56% over the same period. Additionally, the gross profit margin is robust at 66.63%, indicating strong pricing power or efficient cost management in its core operations.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are 9 more InvestingPro Tips available for 10x Genomics, which could provide valuable context for understanding the company's financial position and future prospects in light of recent insider transactions.
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