Lexicon Pharmaceuticals (NASDAQ:LXRX) Trading Up 12.8% - Still a Buy?

Key Points

• Shares jumped 12.8% on Friday to $1.895 on above‑average volume (≈2.76M shares), up from a $1.68 close the prior session.
• Lexicon reported stronger‑than‑expected results—$0.00 EPS vs. a ($0.04) estimate and revenue of $21.1M vs. $9.79M expected—yet the company remains unprofitable with negative net margin and ROE.
• Insiders have been buying (Director Raymond Debbane purchased 100,000 shares at $1.47; insiders own 14%), while analyst sentiment is mixed (two Buys, one Sell) with a consensus "Hold" and $4.15 target.

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX - Get Free Report)'s share price was up 12.8% on Friday . The stock traded as high as $1.86 and last traded at $1.8950. Approximately 2,759,002 shares traded hands during mid-day trading, an increase of 5% from the average daily volume of 2,626,439 shares. The stock had previously closed at $1.68.

Analyst Ratings Changes

Several equities analysts recently weighed in on LXRX shares. Weiss Ratings restated a "sell (d-)" rating on shares of Lexicon Pharmaceuticals in a research note on Thursday, January 22nd. Citigroup lifted their price target on Lexicon Pharmaceuticals from $2.10 to $2.30 and gave the company a "buy" rating in a research note on Tuesday, March 10th. Finally, HC Wainwright restated a "buy" rating and issued a $6.00 price target on shares of Lexicon Pharmaceuticals in a research note on Monday, March 23rd. Two analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $4.15.

Lexicon Pharmaceuticals Trading Up 11.6%

The company has a current ratio of 4.88, a quick ratio of 4.87 and a debt-to-equity ratio of 0.46. The company has a market capitalization of $794.40 million, a price-to-earnings ratio of -13.39 and a beta of 0.97. The company has a fifty day moving average of $1.66 and a 200-day moving average of $1.45.

Lexicon Pharmaceuticals (NASDAQ:LXRX - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The biopharmaceutical company reported $0.00 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.04. Lexicon Pharmaceuticals had a negative return on equity of 41.94% and a negative net margin of 101.08%.The company had revenue of $21.10 million for the quarter, compared to analysts' expectations of $9.79 million. As a group, equities research analysts anticipate that Lexicon Pharmaceuticals, Inc. will post -0.19 earnings per share for the current fiscal year.

Insider Transactions at Lexicon Pharmaceuticals

In other news, Director Raymond Debbane acquired 100,000 shares of the stock in a transaction that occurred on Monday, February 23rd. The shares were bought at an average cost of $1.47 per share, for a total transaction of $147,000.00. Following the acquisition, the director owned 1,904,186 shares in the company, valued at approximately $2,799,153.42. This represents a 5.54% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last 90 days, insiders bought 252,000 shares of company stock valued at $369,980. Insiders own 14.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Security National Bank of Sioux City Iowa IA acquired a new position in shares of Lexicon Pharmaceuticals during the 4th quarter worth approximately $31,000. Hudson Bay Capital Management LP acquired a new position in shares of Lexicon Pharmaceuticals during the 2nd quarter worth approximately $26,000. Bank of New York Mellon Corp boosted its holdings in shares of Lexicon Pharmaceuticals by 43.6% during the 1st quarter. Bank of New York Mellon Corp now owns 27,459 shares of the biopharmaceutical company's stock worth $43,000 after purchasing an additional 8,335 shares during the last quarter. Leonteq Securities AG acquired a new position in shares of Lexicon Pharmaceuticals during the 4th quarter worth approximately $34,000. Finally, Vermillion & White Wealth Management Group LLC boosted its holdings in shares of Lexicon Pharmaceuticals by 400.0% during the 3rd quarter. Vermillion & White Wealth Management Group LLC now owns 32,500 shares of the biopharmaceutical company's stock worth $44,000 after purchasing an additional 26,000 shares during the last quarter. 74.70% of the stock is currently owned by institutional investors and hedge funds.

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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