Lexicon Pharmaceuticals (NASDAQ:LXRX) Shares Gap Down on Disappointing Earnings

Key Points

• Lexicon Pharmaceuticals shares fell sharply, opening at $1.96 after previously closing at $2.45, following disappointing quarterly results.
• The company reported an adjusted loss of $0.07 per share, missing the $0.05 consensus estimate, while revenue of $0.69 million was well below expectations of $3.99 million.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $4.55 target price; institutional investors own 74.70% of the company’s shares.

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX - Get Free Report)'s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $2.45, but opened at $1.96. Lexicon Pharmaceuticals shares last traded at $2.3950, with a volume of 1,493,078 shares trading hands.

The biopharmaceutical company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.02). Lexicon Pharmaceuticals had a negative return on equity of 18.64% and a negative net margin of 37.46%.The firm had revenue of $0.69 million during the quarter, compared to the consensus estimate of $3.99 million.

Analyst Upgrades and Downgrades

LXRX has been the topic of a number of research analyst reports. Citigroup boosted their target price on Lexicon Pharmaceuticals from $2.30 to $3.10 and gave the stock a "buy" rating in a research note on Monday, May 11th. Zacks Research downgraded Lexicon Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research report on Monday. Finally, Weiss Ratings upgraded Lexicon Pharmaceuticals from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, July 23rd. Two equities 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 company. Based on data from MarketBeat.com, Lexicon Pharmaceuticals currently has a consensus rating of "Hold" and a consensus target price of $4.55.

Hedge Funds Weigh In On Lexicon Pharmaceuticals

Several institutional investors and hedge funds have recently bought and sold shares of LXRX. Hudson Bay Capital Management LP purchased a new stake in Lexicon Pharmaceuticals in the second quarter worth $26,000. CTC Alternative Strategies Ltd. bought a new position in shares of Lexicon Pharmaceuticals during the 1st quarter worth $27,000. Security National Bank of Sioux City Iowa IA bought a new position in shares of Lexicon Pharmaceuticals during the 4th quarter worth $31,000. Leonteq Securities AG purchased a new stake in Lexicon Pharmaceuticals in the 4th quarter worth about $34,000. Finally, EntryPoint Capital LLC purchased a new stake in Lexicon Pharmaceuticals in the 4th quarter worth about $39,000. 74.70% of the stock is owned by institutional investors.

Lexicon Pharmaceuticals Stock Down 4.0%

The stock has a 50 day moving average of $2.19 and a 200-day moving average of $1.85. The firm has a market capitalization of $1.04 billion, a P/E ratio of -32.78 and a beta of 1.08. The company has a debt-to-equity ratio of 0.24, a quick ratio of 18.77 and a current ratio of 18.80.

Lexicon Pharmaceuticals Company Profile

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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