Xenon Pharmaceuticals (NASDAQ:XENE) Stock Breaks Above 50-Day Moving Average - Time to Sell?

Key Points

• Xenon Pharmaceuticals shares rose above their 50-day moving average of $41.91, closing at $42.10, but remained below the 200-day average of $52.14.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $71.31, though several firms recently lowered their targets and Deutsche Bank downgraded the stock to Hold.
• CEO Ian Mortimer and CFO Thomas Patrick Kelly bought a combined 45,000 shares in September. The company also reported quarterly loss per share of $1.11, slightly better than the $1.13 loss analysts expected.

Xenon Pharmaceuticals Inc. (NASDAQ:XENE - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $41.91 and traded as high as $42.17. Xenon Pharmaceuticals shares last traded at $42.10, with a volume of 1,253,476 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Deutsche Bank cut Xenon Pharmaceuticals from a "buy" rating to a "hold" rating and dropped their price objective for the company from $90.00 to $46.00 in a research report on Friday, September 18th. Robert W. Baird decreased their target price on Xenon Pharmaceuticals from $97.00 to $90.00 and set an "outperform" rating for the company in a research report on Friday, September 18th. Wall Street Zen cut shares of Xenon Pharmaceuticals from a "sell" rating to a "strong sell" rating in a research note on Sunday, October 11th. Needham & Company LLC dropped their price target on shares of Xenon Pharmaceuticals from $78.00 to $60.00 and set a "buy" rating on the stock in a report on Friday, September 18th. Finally, Royal Bank Of Canada reduced their price target on shares of Xenon Pharmaceuticals from $81.00 to $70.00 and set an "outperform" rating for the company in a research note on Friday, September 18th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Xenon Pharmaceuticals currently has an average rating of "Moderate Buy" and a consensus price target of $71.31.

Xenon Pharmaceuticals Price Performance

The firm has a market cap of $4.07 billion, a PE ratio of -8.96 and a beta of 0.11. The business has a 50-day simple moving average of $41.91 and a 200 day simple moving average of $52.14.

Xenon Pharmaceuticals (NASDAQ:XENE - Get Free Report) last issued its quarterly earnings results on Monday, November 9th. The biopharmaceutical company reported ($1.11) earnings per share for the quarter, beating the consensus estimate of ($1.13) by $0.02. On average, equities analysts forecast that Xenon Pharmaceuticals Inc. will post -4.66 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Xenon Pharmaceuticals news, CEO Ian Mortimer purchased 30,000 shares of the company's stock in a transaction on Wednesday, September 30th. The stock was acquired at an average cost of $37.38 per share, for a total transaction of $1,121,400.00. Following the purchase, the chief executive officer directly owned 49,923 shares of the company's stock, valued at $1,866,121.74. This trade represents a 150.58% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Thomas Patrick Kelly bought 15,000 shares of the business's stock in a transaction that occurred on Wednesday, September 30th. The shares were bought at an average cost of $37.32 per share, with a total value of $559,800.00. Following the completion of the purchase, the chief financial officer directly owned 15,000 shares of the company's stock, valued at $559,800. This represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. 2.91% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in XENE. Covestor Ltd increased its holdings in shares of Xenon Pharmaceuticals by 418.5% in the third quarter. Covestor Ltd now owns 674 shares of the biopharmaceutical company's stock worth $25,000 after purchasing an additional 544 shares during the last quarter. GAMMA Investing LLC boosted its stake in Xenon Pharmaceuticals by 60.2% during the third quarter. GAMMA Investing LLC now owns 830 shares of the biopharmaceutical company's stock valued at $31,000 after buying an additional 312 shares during the last quarter. Global Retirement Partners LLC bought a new position in Xenon Pharmaceuticals during the second quarter valued at approximately $53,000. Quantbot Technologies LP bought a new position in Xenon Pharmaceuticals during the second quarter valued at approximately $57,000. Finally, Axiom Investment Management LLC purchased a new position in Xenon Pharmaceuticals during the 1st quarter valued at approximately $58,000. Institutional investors own 95.45% of the company's stock.

About Xenon Pharmaceuticals

Xenon Pharmaceuticals is a clinical-stage biopharmaceutical company focused on developing medicines for neurological disorders. The company's research emphasizes ion channels, proteins that help regulate the electrical activity of nerve cells. Its lead program is azetukalner, formerly known as XEN1101, an oral Kv7 potassium-channel opener being developed for seizure disorders, including focal epilepsy. Xenon is also advancing other drug candidates aimed at neurological conditions. Founded in 1996, Xenon is headquartered in Burnaby, British Columbia, and conducts drug development activities in North America.

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