Lexicon Pharmaceuticals (NASDAQ:LXRX) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Lexicon Pharmaceuticals to “Sell” from “Hold,” although broader analyst sentiment remains “Hold” with an average price target of $4.55.
• Lexicon shares opened at $2.47 and have risen 4.7%, but the company’s latest quarter missed estimates, reporting a $0.06 loss per share and just $0.69 million in revenue versus $3.99 million expected.
• The company retains substantial institutional support, with hedge funds and other institutions owning 74.7% of shares, while its pipeline—including the SONATA-HCM study and planned ZYNQUISTA resubmission—offers potential future catalysts.

Lexicon Pharmaceuticals (NASDAQ:LXRX - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Other equities analysts have also issued reports about the stock. Citigroup upped their price objective on shares of Lexicon Pharmaceuticals from $2.30 to $3.10 and gave the stock a "buy" rating in a report on Monday, May 11th. Zacks Research downgraded shares of Lexicon Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. Finally, Weiss Ratings raised Lexicon Pharmaceuticals from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, July 23rd. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $4.55.

Lexicon Pharmaceuticals Stock Up 4.7%

Shares of NASDAQ:LXRX opened at $2.47 on Friday. The company has a market capitalization of $1.10 billion, a price-to-earnings ratio of -16.47 and a beta of 1.08. Lexicon Pharmaceuticals has a 12-month low of $1.02 and a 12-month high of $2.68. The business has a 50-day moving average price of $2.20 and a 200 day moving average price of $1.86. The company has a current ratio of 18.80, a quick ratio of 18.77 and a debt-to-equity ratio of 0.24.

Lexicon Pharmaceuticals (NASDAQ:LXRX - Get Free Report) last posted its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.06) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The company had revenue of $0.69 million during the quarter, compared to analyst estimates of $3.99 million. Lexicon Pharmaceuticals had a negative net margin of 147.38% and a negative return on equity of 39.56%. Sell-side analysts expect that Lexicon Pharmaceuticals will post -0.17 EPS for the current year.

Hedge Funds Weigh In On Lexicon Pharmaceuticals

A number of institutional investors and hedge funds have recently modified their holdings of the company. Siren L.L.C. lifted its holdings in Lexicon Pharmaceuticals by 13.8% during the 1st quarter. Siren L.L.C. now owns 44,303,518 shares of the biopharmaceutical company's stock worth $69,113,000 after buying an additional 5,384,615 shares during the last quarter. UBS Group AG increased its stake in Lexicon Pharmaceuticals by 752.1% in the fourth quarter. UBS Group AG now owns 3,007,237 shares of the biopharmaceutical company's stock valued at $3,458,000 after purchasing an additional 2,654,315 shares during the last quarter. CIBC Bancorp USA Inc. acquired a new stake in Lexicon Pharmaceuticals during the third quarter worth approximately $3,240,000. Millennium Management LLC lifted its position in Lexicon Pharmaceuticals by 133.1% in the third quarter. Millennium Management LLC now owns 3,830,660 shares of the biopharmaceutical company's stock valued at $5,171,000 after acquiring an additional 2,187,396 shares during the last quarter. Finally, Renaissance Technologies LLC boosted its stake in Lexicon Pharmaceuticals by 508.0% in the first quarter. Renaissance Technologies LLC now owns 1,600,500 shares of the biopharmaceutical company's stock valued at $2,497,000 after acquiring an additional 1,337,246 shares in the last quarter. Institutional investors and hedge funds own 74.70% of the company's stock.

Lexicon Pharmaceuticals News Summary

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

• Positive Sentiment: Lexicon completed enrollment in the pivotal Phase 3 SONATA-HCM study of sotagliflozin for hypertrophic cardiomyopathy, exceeding its 500-patient enrollment target. Top-line results remain expected in the first quarter of 2027, providing a potentially significant future catalyst. Lexicon Pharmaceuticals Reports Second Quarter 2026 Financial Results and Provides Clinical Updates
• Positive Sentiment: The company said its activities to resubmit the ZYNQUISTA NDA for glycemic control in adults with type 1 diabetes are nearing completion, with resubmission anticipated in the fourth quarter of 2026. Phase 1 development of obesity candidate LX9851 is also continuing through partner Novo Nordisk, and Lexicon could receive an additional $10 million milestone payment as early as later this year. Lexicon Pharmaceuticals Q2 2026 Earnings Call Transcript
• Positive Sentiment: Lexicon reported $190.6 million in cash and investments at June 30, supported by $96.2 million in stock-sale proceeds, giving it additional resources to fund clinical development. A Hercules Capital facility also provides up to $100 million in potential financing, subject to conditions.
• Neutral Sentiment: Management emphasized disciplined capital allocation and early commercial planning for its late-stage pipeline. However, the principal value drivers remain dependent on successful clinical results and regulatory approval.
• Negative Sentiment: Second-quarter revenue fell to approximately $0.7 million from $28.9 million a year earlier because the prior-year period included substantial Novo Nordisk licensing revenue. The company posted a net loss of roughly $31.8 million, or $0.07 per share, versus net income of $3.3 million in the prior-year quarter. Revenue also came in below analyst expectations, while research and development spending rose to $17.4 million as SONATA-HCM costs increased. Lexicon Pharmaceuticals Reports Q2 Loss, Lags Revenue Estimates

About Lexicon Pharmaceuticals

Lexicon Pharmaceuticals, Inc is a biopharmaceutical company focused on the discovery and development of novel medicines through its proprietary genome biology platform. By leveraging large-scale gene knockout libraries, the company identifies potential therapeutic targets and advances them through preclinical and clinical development. Lexicon's approach emphasizes the translation of genetic insights into targeted therapies for a range of human diseases.

The company's most advanced product is telotristat ethyl (sold under the brand name XERMELO), an oral treatment approved for the management of carcinoid syndrome diarrhea in patients inadequately controlled by somatostatin analog therapy.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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