Xenon Pharmaceuticals (NASDAQ:XENE) Stock Lifted to "Sell" by Wall Street Zen

Key Points

• Wall Street Zen upgraded Xenon Pharmaceuticals from “strong sell” to “sell,” but the broader analyst consensus remains “Moderate Buy,” with an average price target of $70.27.
• XENE opened at $38.02, near its 12-month low of $36.07, and remains loss-making; analysts expect a full-year loss of approximately $4.70 per share despite the company slightly exceeding its latest quarterly EPS estimate.
• Insider buying and strong institutional ownership provide some support, while Xenon’s lead drug candidate, azetukalner (XEN1101), continues advancing for epilepsy and major depressive disorder.

Xenon Pharmaceuticals (NASDAQ:XENE - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a research note issued on Saturday, Wall Street Zen reports.

Several other research analysts have also issued reports on the stock. HC Wainwright reiterated a "buy" rating on shares of Xenon Pharmaceuticals in a research note on Friday, September 18th. Jefferies Financial Group reissued a "buy" rating and set a $90.00 price objective on shares of Xenon Pharmaceuticals in a research note on Monday. Wells Fargo & Company cut their price objective on shares of Xenon Pharmaceuticals from $69.00 to $64.00 and set an "overweight" rating on the stock in a report on Friday, September 18th. Weiss Ratings restated a "sell (d-)" rating on shares of Xenon Pharmaceuticals in a research note on Monday, July 6th. Finally, Needham & Company LLC reduced their price objective on Xenon Pharmaceuticals from $78.00 to $60.00 and set a "buy" rating for the company in a research report on Friday, September 18th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $70.27.

Xenon Pharmaceuticals Stock Down 2.3%

NASDAQ XENE opened at $38.02 on Friday. The firm has a market capitalization of $3.68 billion, a PE ratio of -8.02 and a beta of 0.60. The stock's 50 day moving average is $56.32 and its 200 day moving average is $57.02. Xenon Pharmaceuticals has a twelve month low of $36.07 and a twelve month high of $72.66.

Xenon Pharmaceuticals (NASDAQ:XENE - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The biopharmaceutical company reported ($1.11) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($1.16) by $0.05. During the same period in the prior year, the company posted ($1.07) earnings per share. On average, research analysts anticipate that Xenon Pharmaceuticals will post -4.7 earnings per share for the current year.

Insider Transactions at Xenon Pharmaceuticals

In related news, Director Steven Gannon sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $64.06, for a total value of $640,600.00. Following the transaction, the director owned 1,870 shares of the company's stock, valued at approximately $119,792.20. This trade represents a 84.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Thomas Patrick Kelly bought 15,000 shares of the business's stock in a transaction that occurred on Wednesday, September 30th. The shares were acquired at an average price of $37.32 per share, with a total value of $559,800.00. Following the completion of the transaction, the chief financial officer directly owned 15,000 shares of the company's stock, valued at $559,800. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 2.91% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in XENE. BlackRock Inc. bought a new stake in shares of Xenon Pharmaceuticals during the 2nd quarter valued at $454,057,000. Jupiter Topco LLC bought a new position in Xenon Pharmaceuticals in the 2nd quarter worth $252,673,000. Orbimed Advisors LLC increased its stake in Xenon Pharmaceuticals by 137.0% in the 1st quarter. Orbimed Advisors LLC now owns 1,059,971 shares of the biopharmaceutical company's stock worth $61,637,000 after buying an additional 612,771 shares in the last quarter. Siren L.L.C. lifted its position in shares of Xenon Pharmaceuticals by 62.2% in the first quarter. Siren L.L.C. now owns 1,318,564 shares of the biopharmaceutical company's stock valued at $76,674,000 after acquiring an additional 505,803 shares in the last quarter. Finally, Octagon Capital Advisors LP bought a new position in Xenon Pharmaceuticals in the 1st quarter worth approximately $28,494,000. 95.45% of the stock is currently owned by institutional investors.

Key Stories Impacting Xenon Pharmaceuticals

Here are the key news stories impacting Xenon Pharmaceuticals this week:

• Positive Sentiment: CEO Ian Mortimer purchased 30,000 shares for approximately $1.12 million, while CFO Thomas Patrick Kelly bought 15,000 shares for about $559,800. The combined purchases, made near $37 per share, may reassure investors that senior management views the recent weakness as an attractive entry point. Insider Buying: Xenon Pharmaceuticals CFO Buys $559,800 in Stock
• Positive Sentiment: RBC said safety issues are unlikely to derail the approval path for azetukalner (XEN1101), Xenon’s lead investigational treatment for epilepsy and major depressive disorder. This reduces concern that safety questions could materially delay a key development catalyst. Xenon’s AZK Approval Path Unlikely to Be Hurt by Safety Issues
• Neutral Sentiment: Xenon granted eight newly hired, non-officer employees 17,850 stock options and 10,500 restricted share units under Nasdaq’s inducement-grant exemption. The awards support recruitment but could modestly increase future share dilution. Xenon Pharmaceuticals Reports Inducement Grants
• Negative Sentiment: Although analysts maintain a broadly positive consensus, recent target-price reductions—including Deutsche Bank’s cut to $46 from $90—highlight continuing concerns about valuation, execution and the path to commercialization. Xenon remains loss-making, with analysts expecting a full-year loss of approximately $4.70 per share.

Xenon Pharmaceuticals Company Profile

Xenon Pharmaceuticals Inc is a clinical-stage biopharmaceutical company focused on developing medicines for neurological and psychiatric disorders. The company uses research in ion channels and neuronal signaling to identify potential treatments for conditions with significant unmet medical needs.

Xenon's lead investigational medicine is azetukalner, also known as XEN1101, a selective potassium channel opener being evaluated for epilepsy and major depressive disorder. The company is also advancing additional programs aimed at genetically defined epilepsies and other disorders of the central nervous system.

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