Xencor (NASDAQ:XNCR) Hits New 12-Month Low on Analyst Downgrade

Key Points

• Shares of Xencor hit a new 52-week low at $7.07 following a downgrade from Wells Fargo, which lowered its price target from $33.00 to $27.00.
• Other brokerages, including Barclays and Wedbush, also adjusted their price targets for Xencor, with Barclays lowering it to $6.00 and Wedbush to $26.00.
• Insider selling was notable, with two directors selling a combined total of nearly 6,000 shares recently, indicating potential concerns about the company's future outlook.

Shares of Xencor, Inc. (NASDAQ:XNCR - Get Free Report) hit a new 52-week low during trading on Thursday after Wells Fargo & Company lowered their price target on the stock from $33.00 to $27.00. Wells Fargo & Company currently has an overweight rating on the stock. Xencor traded as low as $7.07 and last traded at $7.18, with a volume of 220848 shares traded. The stock had previously closed at $7.49.

Several other brokerages also recently issued reports on XNCR. Barclays cut their price target on Xencor from $22.00 to $6.00 and set an "underweight" rating on the stock in a report on Thursday, May 8th. Wedbush dropped their price objective on shares of Xencor from $31.00 to $26.00 and set an "outperform" rating on the stock in a report on Thursday. Finally, William Blair began coverage on shares of Xencor in a research note on Monday, April 21st. They set an "outperform" rating for the company. Two analysts have rated the stock with a sell rating and seven have given a buy rating to the company's stock. Based on data from MarketBeat.com, Xencor currently has an average rating of "Moderate Buy" and an average target price of $26.43.

Insider Buying and Selling

In other Xencor news, Director Richard J. Ranieri sold 2,993 shares of the stock in a transaction on Monday, June 16th. The stock was sold at an average price of $9.22, for a total transaction of $27,595.46. Following the completion of the transaction, the director directly owned 19,183 shares of the company's stock, valued at approximately $176,867.26. This trade represents a 13.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Kurt A. Gustafson sold 2,993 shares of the firm's stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $9.22, for a total value of $27,595.46. Following the transaction, the director directly owned 20,183 shares of the company's stock, valued at $186,087.26. This represents a 12.91% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 11,194 shares of company stock valued at $103,209 over the last quarter. Corporate insiders own 4.76% of the company's stock.

Hedge Funds Weigh In On Xencor

A number of hedge funds and other institutional investors have recently modified their holdings of XNCR. Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in Xencor by 153.2% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 29,371 shares of the biopharmaceutical company's stock valued at $231,000 after buying an additional 17,773 shares in the last quarter. Los Angeles Capital Management LLC grew its stake in Xencor by 654.5% during the 2nd quarter. Los Angeles Capital Management LLC now owns 95,847 shares of the biopharmaceutical company's stock valued at $753,000 after acquiring an additional 83,143 shares in the last quarter. Corton Capital Inc. acquired a new position in shares of Xencor in the 2nd quarter valued at about $189,000. Bank of Montreal Can boosted its holdings in shares of Xencor by 160.5% during the second quarter. Bank of Montreal Can now owns 28,209 shares of the biopharmaceutical company's stock worth $222,000 after purchasing an additional 17,381 shares during the period. Finally, Y Intercept Hong Kong Ltd grew its position in Xencor by 93.0% during the second quarter. Y Intercept Hong Kong Ltd now owns 95,745 shares of the biopharmaceutical company's stock valued at $753,000 after purchasing an additional 46,140 shares in the last quarter.

Xencor Trading Down 4.2%

The company has a debt-to-equity ratio of 0.16, a quick ratio of 5.89 and a current ratio of 5.89. The stock has a market cap of $510.79 million, a price-to-earnings ratio of -2.34 and a beta of 0.89. The company's 50 day simple moving average is $8.69 and its two-hundred day simple moving average is $11.18.

Xencor (NASDAQ:XNCR - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The biopharmaceutical company reported ($0.41) earnings per share for the quarter, topping analysts' consensus estimates of ($0.78) by $0.37. Xencor had a negative net margin of 181.17% and a negative return on equity of 31.94%. The business had revenue of $43.61 million for the quarter, compared to the consensus estimate of $22.59 million. During the same period in the prior year, the business posted ($1.07) earnings per share. Xencor's revenue for the quarter was up 82.4% compared to the same quarter last year. Research analysts expect that Xencor, Inc. will post -3.68 EPS for the current fiscal year.

About Xencor

Xencor, Inc, a clinical stage biopharmaceutical company, focuses on the discovery and development of engineered monoclonal antibody and cytokine therapeutics to treat patients with cancer and autoimmune diseases. The company provides Sotrovimab that targets the SARS-CoV-2 virus; Ultomiris for the treatment of patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome; and Monjuvi for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma.

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