Xencor (NASDAQ:XNCR) Releases Earnings Results, Misses Estimates By $1.06 EPS

Key Points

• Big earnings and revenue miss: Xencor reported Q results with EPS of ($1.71) vs. consensus ($0.65) (a $1.06 miss) and revenue of $4.52M versus $27.86M expected, alongside a negative net margin (-73.2%) and negative ROE.
• Stock and analyst backdrop: Shares traded at $13.01 after the print, the company has a ~$964M market cap, and Wall Street consensus is a "Moderate Buy" with an average price target of $24.38.
• Notable insider selling: Executives, including the CEO and VP, sold shares in March and insiders sold 44,020 shares (~$499,817) over the last 90 days, leaving insiders with 5.23% ownership.

Xencor (NASDAQ:XNCR - Get Free Report) issued its earnings results on Wednesday. The biopharmaceutical company reported ($1.71) EPS for the quarter, missing analysts' consensus estimates of ($0.65) by ($1.06), FiscalAI reports. The firm had revenue of $4.52 million for the quarter, compared to analyst estimates of $27.86 million. Xencor had a negative return on equity of 14.58% and a negative net margin of 73.20%.

Xencor Stock Performance

XNCR traded up $0.16 on Wednesday, reaching $13.01. The company had a trading volume of 814,405 shares, compared to its average volume of 781,273. Xencor has a 1 year low of $6.92 and a 1 year high of $18.69. The stock has a market capitalization of $964.43 million, a PE ratio of -10.49 and a beta of 0.93. The company has a quick ratio of 6.25, a current ratio of 6.25 and a debt-to-equity ratio of 0.12. The stock has a 50-day moving average price of $12.24 and a 200-day moving average price of $13.63.

Wall Street Analyst Weigh In

A number of brokerages recently commented on XNCR. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $13.00 target price (down from $18.00) on shares of Xencor in a research note on Tuesday, March 24th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Xencor in a research note on Friday, March 27th. Wall Street Zen upgraded shares of Xencor from a "sell" rating to a "hold" rating in a research note on Saturday, April 18th. Finally, Barclays boosted their target price on shares of Xencor from $26.00 to $27.00 and gave the stock an "overweight" rating in a research note on Thursday, February 26th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $24.38.

Insider Activity at Xencor

In related news, VP John R. Desjarlais sold 2,502 shares of the business's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $11.02, for a total value of $27,572.04. Following the completion of the sale, the vice president directly owned 263,831 shares of the company's stock, valued at $2,907,417.62. The trade was a 0.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Bassil I. Dahiyat sold 6,606 shares of the business's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $11.02, for a total transaction of $72,798.12. Following the completion of the sale, the chief executive officer directly owned 546,316 shares of the company's stock, valued at approximately $6,020,402.32. This trade represents a 1.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 44,020 shares of company stock valued at $499,817 over the last ninety days. Insiders own 5.23% of the company's stock.

Institutional Investors Weigh In On Xencor

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Invesco Ltd. lifted its position in Xencor by 5.7% in the fourth quarter. Invesco Ltd. now owns 265,820 shares of the biopharmaceutical company's stock valued at $4,070,000 after acquiring an additional 14,216 shares during the last quarter. EP Wealth Advisors LLC purchased a new stake in Xencor in the fourth quarter valued at $202,000. XTX Topco Ltd purchased a new stake in shares of Xencor in the fourth quarter valued at about $490,000. Voloridge Investment Management LLC purchased a new stake in shares of Xencor in the fourth quarter valued at about $1,343,000. Finally, Virtus Investment Advisers LLC raised its holdings in shares of Xencor by 33.5% in the fourth quarter. Virtus Investment Advisers LLC now owns 16,103 shares of the biopharmaceutical company's stock valued at $247,000 after buying an additional 4,037 shares during the last quarter.

About Xencor

Xencor, Inc is a clinical-stage biopharmaceutical company focused on the design and development of engineered protein therapeutics for the treatment of autoimmune diseases, cancer and neurological disorders. The company applies its proprietary XmAb® platform to manipulate antibody structure and function, creating molecules with enhanced immune engagement and extended half-life. Xencor's research programs span a range of therapeutic modalities, including monoclonal antibodies, bispecific antibodies and cytokine-based fusion proteins.

The XmAb® platform enables precise modification of the Fc region to augment key properties such as receptor binding, effector function and pharmacokinetics.

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