Is TXG Stock A Buy or Sell?

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 887 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of December 31st, 2020. In this article we are going to take a look at smart money sentiment towards 10x Genomics, Inc. (NASDAQ:TXG).

Is TXG stock a buy? 10x Genomics, Inc. (NASDAQ:TXG) was in 33 hedge funds’ portfolios at the end of December. The all time high for this statistic is 31. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. TXG investors should be aware of an increase in hedge fund interest of late. There were 31 hedge funds in our database with TXG holdings at the end of September. Our calculations also showed that TXG isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings).

Daniel Sundheim of D1 Capital Partners

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we heard that billionaire Peter Thiel is backing this psychedelic-drug startup. So, we are taking a closer look at this space. We go through lists like the 10 best biotech stocks under $10 to identify the next stock with 10x upside potential. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. With all of this in mind we’re going to view the latest hedge fund action encompassing 10x Genomics, Inc. (NASDAQ:TXG).

Do Hedge Funds Think TXG Is A Good Stock To Buy Now?

Heading into the first quarter of 2021, a total of 33 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 6% from the previous quarter. On the other hand, there were a total of 12 hedge funds with a bullish position in TXG a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, 12 West Capital Management held the most valuable stake in 10x Genomics, Inc. (NASDAQ:TXG), which was worth $272.2 million at the end of the fourth quarter. On the second spot was JS Capital which amassed $84.9 million worth of shares. ARK Investment Management, Millennium Management, and Marshall Wace LLP were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position 12 West Capital Management allocated the biggest weight to 10x Genomics, Inc. (NASDAQ:TXG), around 11.69% of its 13F portfolio. Andar Capital is also relatively very bullish on the stock, dishing out 4.25 percent of its 13F equity portfolio to TXG.

Consequently, key money managers have jumped into 10x Genomics, Inc. (NASDAQ:TXG) headfirst. D1 Capital Partners, managed by Daniel Sundheim, initiated the most valuable position in 10x Genomics, Inc. (NASDAQ:TXG). D1 Capital Partners had $27.1 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $8.4 million position during the quarter. The other funds with brand new TXG positions are Albert Cha and Frank Kung’s Vivo Capital, Cliff Asness’s AQR Capital Management, and Wen Han Li’s Andar Capital.

Let’s also examine hedge fund activity in other stocks similar to 10x Genomics, Inc. (NASDAQ:TXG). We will take a look at Celanese Corporation (NYSE:CE), NVR, Inc. (NYSE:NVR), Cheniere Energy, Inc. (NYSE:LNG), Domino’s Pizza, Inc. (NYSE:DPZ), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Suzano S.A. (NYSE:SUZ), and IDEX Corporation (NYSE:IEX). All of these stocks’ market caps are closest to TXG’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 32.6 hedge funds with bullish positions and the average amount invested in these stocks was $1068 million. That figure was $745 million in TXG’s case. NVR, Inc. (NYSE:NVR) is the most popular stock in this table. On the other hand Suzano S.A. (NYSE:SUZ) is the least popular one with only 6 bullish hedge fund positions. 10x Genomics, Inc. (NASDAQ:TXG) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TXG is 70.8. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 7.9% in 2021 through April 1st and still beat the market by 0.4 percentage points. Hedge funds were also right about betting on TXG as the stock returned 31.2% since the end of Q4 (through 4/1) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

Disclosure: None. This article was originally published at Insider Monkey.