Xenon Pharmaceuticals (NASDAQ:XENE) Shares Up 7.1% - Should You Buy?

Key Points

• Xenon Pharmaceuticals shares rose by 7.1%, closing at $32.65, despite a 75% drop in trading volume compared to the average.
• Analysts have revised their price targets downward, with Goldman Sachs setting a new target of $52.00, but the overall consensus remains a "Moderate Buy" with an average target price of $54.82.
• The company reported a better-than-expected earnings performance for the last quarter, with a revenue increase to $7.50 million, surpassing analyst estimates of $1.64 million.

Xenon Pharmaceuticals Inc. (NASDAQ:XENE - Get Free Report)'s stock price rose 7.1% on Monday . The company traded as high as $32.87 and last traded at $32.65. Approximately 215,194 shares changed hands during trading, a decline of 75% from the average daily volume of 868,092 shares. The stock had previously closed at $30.50.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. Wells Fargo & Company dropped their price objective on shares of Xenon Pharmaceuticals from $50.00 to $47.00 and set an "overweight" rating on the stock in a research note on Tuesday, May 13th. HC Wainwright reissued a "buy" rating and issued a $53.00 price target on shares of Xenon Pharmaceuticals in a report on Tuesday, May 13th. Evercore ISI initiated coverage on Xenon Pharmaceuticals in a report on Wednesday, May 14th. They issued an "outperform" rating and a $55.00 target price for the company. The Goldman Sachs Group lowered their target price on shares of Xenon Pharmaceuticals from $60.00 to $52.00 and set a "buy" rating on the stock in a research report on Thursday, April 17th. Finally, Chardan Capital reaffirmed a "buy" rating and set a $55.00 price objective on shares of Xenon Pharmaceuticals in a report on Tuesday, May 13th. One analyst has rated the stock with a sell rating and twelve have assigned a buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $54.82.

Xenon Pharmaceuticals Price Performance

The stock has a market cap of $2.53 billion, a price-to-earnings ratio of -10.25 and a beta of 1.16. The stock's 50-day moving average is $31.89 and its 200-day moving average is $34.20.

Xenon Pharmaceuticals (NASDAQ:XENE - Get Free Report) last posted its quarterly earnings data on Monday, May 12th. The biopharmaceutical company reported ($0.83) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.90) by $0.07. The business had revenue of $7.50 million for the quarter, compared to analyst estimates of $1.64 million. During the same quarter last year, the business earned ($0.62) EPS. Analysts predict that Xenon Pharmaceuticals Inc. will post -3.1 EPS for the current fiscal year.

Institutional Investors Weigh In On Xenon Pharmaceuticals

A number of institutional investors have recently bought and sold shares of XENE. FMR LLC raised its position in shares of Xenon Pharmaceuticals by 8.8% in the 4th quarter. FMR LLC now owns 7,525,290 shares of the biopharmaceutical company's stock worth $294,991,000 after buying an additional 607,606 shares during the period. Driehaus Capital Management LLC raised its holdings in shares of Xenon Pharmaceuticals by 1.4% in the 1st quarter. Driehaus Capital Management LLC now owns 4,584,859 shares of the biopharmaceutical company's stock worth $153,822,000 after purchasing an additional 64,264 shares during the period. Wellington Management Group LLP lifted its stake in shares of Xenon Pharmaceuticals by 0.3% in the 1st quarter. Wellington Management Group LLP now owns 3,789,197 shares of the biopharmaceutical company's stock valued at $127,128,000 after purchasing an additional 11,586 shares in the last quarter. Braidwell LP lifted its stake in shares of Xenon Pharmaceuticals by 7.6% in the 4th quarter. Braidwell LP now owns 2,913,964 shares of the biopharmaceutical company's stock valued at $114,227,000 after purchasing an additional 206,709 shares in the last quarter. Finally, Janus Henderson Group PLC grew its holdings in shares of Xenon Pharmaceuticals by 12.3% during the 4th quarter. Janus Henderson Group PLC now owns 2,866,755 shares of the biopharmaceutical company's stock worth $112,425,000 after purchasing an additional 314,363 shares during the period. 95.45% of the stock is currently owned by hedge funds and other institutional investors.

Xenon Pharmaceuticals Company Profile

Xenon Pharmaceuticals Inc, a neuroscience-focused biopharmaceutical company, engages in the development of therapeutics to treat patients with neurological disorders in Canada. Its clinical development pipeline includes XEN1101, a novel and potent Kv7 potassium channel opener, which is in Phase 3 clinical trials for the treatment of epilepsy and other neurological disorders.