Investors Buy High Volume of Put Options on Xenon Pharmaceuticals (NASDAQ:XENE)

Key Points

• Investors have shown significant bearish sentiment towards Xenon Pharmaceuticals, with a surge of approximately 2,362% in put option volumes, totaling 4,063 contracts traded.
• Analysts maintain a generally positive outlook for Xenon Pharmaceuticals, with a consensus rating of "Moderate Buy" and a target price of $53.67.
• CEO Ian Mortimer sold 25,000 shares of the company's stock, resulting in a 44.40% decrease in his ownership stake, which raises questions about insider confidence.

Xenon Pharmaceuticals Inc. (NASDAQ:XENE - Get Free Report) was the target of unusually large options trading activity on Wednesday. Traders purchased 4,063 put options on the company. This represents an increase of approximately 2,362% compared to the typical volume of 165 put options.

Analyst Ratings Changes

Several equities analysts recently commented on XENE shares. William Blair reaffirmed an "outperform" rating on shares of Xenon Pharmaceuticals in a research note on Tuesday, October 7th. Wells Fargo & Company started coverage on shares of Xenon Pharmaceuticals in a research note on Wednesday, September 3rd. They set an "overweight" rating and a $48.00 price objective for the company. Chardan Capital reaffirmed a "buy" rating and set a $55.00 price objective on shares of Xenon Pharmaceuticals in a research note on Tuesday, October 7th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $55.00 price objective on shares of Xenon Pharmaceuticals in a research note on Tuesday, September 2nd. Finally, Bloom Burton raised shares of Xenon Pharmaceuticals to a "strong-buy" rating in a research note on Tuesday, October 7th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $53.67.

Insider Transactions at Xenon Pharmaceuticals

In related news, CEO Ian Mortimer sold 25,000 shares of the firm's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $40.16, for a total transaction of $1,004,000.00. Following the completion of the sale, the chief executive officer owned 31,302 shares in the company, valued at approximately $1,257,088.32. This trade represents a 44.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 4.07% of the company's stock.

Institutional Trading of Xenon Pharmaceuticals

Hedge funds and other institutional investors have recently modified their holdings of the business. Farther Finance Advisors LLC purchased a new stake in shares of Xenon Pharmaceuticals in the 2nd quarter worth about $25,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Xenon Pharmaceuticals in the 1st quarter worth about $30,000. Elevation Point Wealth Partners LLC purchased a new stake in shares of Xenon Pharmaceuticals in the 2nd quarter worth about $32,000. Osaic Holdings Inc. grew its position in shares of Xenon Pharmaceuticals by 541.4% in the 2nd quarter. Osaic Holdings Inc. now owns 1,225 shares of the biopharmaceutical company's stock worth $40,000 after buying an additional 1,034 shares during the period. Finally, L1 Capital Pty Ltd purchased a new stake in shares of Xenon Pharmaceuticals in the 2nd quarter worth about $41,000. 95.45% of the stock is owned by hedge funds and other institutional investors.

Xenon Pharmaceuticals Stock Performance

Shares of Xenon Pharmaceuticals stock opened at $41.90 on Thursday. Xenon Pharmaceuticals has a 52-week low of $26.74 and a 52-week high of $46.00. The stock has a market capitalization of $3.23 billion, a price-to-earnings ratio of -11.80 and a beta of 1.14. The company has a fifty day moving average of $38.04 and a 200-day moving average of $34.35.

Xenon Pharmaceuticals (NASDAQ:XENE - Get Free Report) last posted its quarterly earnings results on Monday, August 11th. The biopharmaceutical company reported ($1.07) EPS for the quarter, missing analysts' consensus estimates of ($1.03) by ($0.04). During the same quarter in the prior year, the company posted ($0.75) EPS. On average, equities research analysts forecast that Xenon Pharmaceuticals will post -3.1 earnings per share for the current fiscal year.

About Xenon Pharmaceuticals

Xenon Pharmaceuticals Inc, a neuroscience-focused biopharmaceutical company, engages in the development of therapeutics to treat patients with neurological disorders in Canada. Its clinical development pipeline includes XEN1101, a novel and potent Kv7 potassium channel opener, which is in Phase 3 clinical trials for the treatment of epilepsy and other neurological disorders.

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