10x Genomics (TXG) Soars 5.71% on Patent Settlement

10x Genomics (TXG) shares surged 5.71% today, reaching their highest level since March 2025 with an intraday gain of 7.29%.

The strategy of buying TXG shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The cumulative return was -51.4%, significantly underperforming the market. This indicates that waiting for a recent high before buying TXG shares and holding for 1 week is not a reliable strategy for this stock.

10x Genomics recently announced a patent litigation settlement agreement with Bruker. This development could significantly influence investor sentiment, potentially driving the stock price higher as it alleviates legal uncertainties and allows the company to focus on its core business operations.

Despite the recent gains, 10x Genomics has faced a challenging year, with its stock price down 22.4% since the beginning of 2025. This decline has contributed to negative market perceptions, but today's surge suggests a potential shift in investor sentiment.

Another factor impacting the stock price is the high short interest, with 16.02 million shares representing 14.71% of the float. This indicates a significant bearish sentiment among investors, which could be a catalyst for the recent price movements as short sellers cover their positions.

Analyst actions have also played a role in the stock's performance. Morgan Stanley recently cut its target price for 10x Genomics from $26.00 to $18.00, while Citigroup lowered its price target from $20 to $15 while maintaining a Buy rating. These changes in analyst price targets can affect investor expectations and stock price movements, contributing to the volatility seen in 10x Genomics' shares.