What Happened?
Shares of biotech company 10x Genomics (NASDAQ:TXG) fell 6.3% in the morning session after Citigroup downgraded the stock to Neutral from Buy.
The analyst firm adjusted its rating on the life science tools and diagnostics company, signaling a less optimistic outlook on its near-term performance. While Citigroup kept its price target for 10x Genomics unchanged at $18, the downgrade from a "Buy" rating was the key factor influencing investor sentiment. Such a change from an analyst can often lead investors to reconsider their position in a stock.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy 10x Genomics? Access our full analysis report here.
What Is The Market Telling Us
10x Genomics’s shares are extremely volatile and have had 50 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 17 days ago when the stock gained 8.2% on the news that reports revealed the Trump administration considered extending the Affordable Care Act (ACA) subsidies.
These subsidies, which are government financial aids to help people pay for health insurance, are crucial for insurers as they maintain a stable customer base. An extension would ensure continued revenue for companies with significant exposure to the ACA marketplace. The news prompted a strong positive reaction from investors, with Centene (CNC) shares jumping as much as 8%, Molina Healthcare (MOH) rising over 3%, and Oscar Health (OSCR) soaring 18%. The potential for a two-year extension reduces regulatory uncertainty for the sector, which investors view as a significant positive for the industry's outlook.
10x Genomics is up 16.3% since the beginning of the year, but at $16.51 per share, it is still trading 18% below its 52-week high of $20.13 from November 2025. Investors who bought $1,000 worth of 10x Genomics’s shares 5 years ago would now be looking at an investment worth $111.59.
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