Lexicon Pharmaceuticals (NASDAQ:LXRX) Shares Cross Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Lexicon Pharmaceuticals (NASDAQ:LXRX) shares moved above their 200-day moving average, trading as high as $2.21 and last changing hands at $2.20, suggesting recent bullish momentum in the stock.
• Analyst sentiment has improved, with Zacks upgrading the stock to strong-buy and Citigroup raising its price target to $3.10; the current consensus rating is Moderate Buy with an average target price of $4.55.
• The company recently beat quarterly expectations, reporting break-even EPS versus an expected loss and $21.1 million in revenue versus $9.79 million expected, while institutional investors also increased holdings significantly.

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX - Get Free Report) crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $1.73 and traded as high as $2.21. Lexicon Pharmaceuticals shares last traded at $2.20, with a volume of 4,408,334 shares.

Analysts Set New Price Targets

A number of research firms have commented on LXRX. Zacks Research upgraded shares of Lexicon Pharmaceuticals from a "hold" rating to a "strong-buy" rating in a report on Friday, July 3rd. Weiss Ratings lowered shares of Lexicon Pharmaceuticals from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, July 8th. Citigroup increased their price objective on shares of Lexicon Pharmaceuticals from $2.30 to $3.10 and gave the stock a "buy" rating in a research report on Monday, May 11th. Finally, HC Wainwright restated a "buy" rating and issued a $6.00 target price on shares of Lexicon Pharmaceuticals in a research note on Monday, March 23rd. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $4.55.

Lexicon Pharmaceuticals Price Performance

The business has a 50-day moving average price of $2.15 and a two-hundred day moving average price of $1.73. The company has a quick ratio of 18.77, a current ratio of 18.80 and a debt-to-equity ratio of 0.24. The company has a market capitalization of $977.24 million, a price-to-earnings ratio of -31.42 and a beta of 1.05.

Lexicon Pharmaceuticals (NASDAQ:LXRX - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The biopharmaceutical company reported ($0.00) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.04. The business had revenue of $21.10 million during the quarter, compared to the consensus estimate of $9.79 million. Lexicon Pharmaceuticals had a negative net margin of 37.46% and a negative return on equity of 18.64%. As a group, research analysts anticipate that Lexicon Pharmaceuticals, Inc. will post -0.17 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. CTC Alternative Strategies Ltd. bought a new stake in shares of Lexicon Pharmaceuticals during the first quarter worth about $27,000. Bank of America Corp DE lifted its position in Lexicon Pharmaceuticals by 415.3% in the 1st quarter. Bank of America Corp DE now owns 526,103 shares of the biopharmaceutical company's stock valued at $821,000 after acquiring an additional 424,006 shares in the last quarter. ADAR1 Capital Management LLC acquired a new position in Lexicon Pharmaceuticals during the 1st quarter valued at about $1,170,000. Bridgewater Advisors Inc. acquired a new position in Lexicon Pharmaceuticals during the 1st quarter valued at about $128,000. Finally, Renaissance Technologies LLC increased its holdings in Lexicon Pharmaceuticals by 508.0% during the 1st quarter. Renaissance Technologies LLC now owns 1,600,500 shares of the biopharmaceutical company's stock worth $2,497,000 after purchasing an additional 1,337,246 shares in the last quarter. 74.70% of the stock is currently owned by institutional investors and hedge funds.

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.

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