Xenon Pharmaceuticals (NASDAQ:XENE) Trading 7.1% Higher - Still a 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 share price was up 7.1% during mid-day trading on Monday . The company traded as high as $32.87 and last traded at $32.65. Approximately 215,194 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 868,092 shares. The stock had previously closed at $30.50.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on XENE shares. The Goldman Sachs Group decreased their price objective on shares of Xenon Pharmaceuticals from $60.00 to $52.00 and set a "buy" rating for the company in a research note on Thursday, April 17th. Needham & Company LLC decreased their price objective on shares of Xenon Pharmaceuticals from $60.00 to $55.00 and set a "buy" rating for the company in a research note on Tuesday, May 13th. Royal Bank Of Canada decreased their price objective on shares of Xenon Pharmaceuticals from $58.00 to $55.00 and set an "outperform" rating for the company in a research note on Tuesday, May 13th. Evercore ISI started coverage on shares of Xenon Pharmaceuticals in a research note on Wednesday, May 14th. They set an "outperform" rating and a $55.00 price objective for the company. Finally, Wells Fargo & Company decreased their price objective on shares of Xenon Pharmaceuticals from $50.00 to $47.00 and set an "overweight" rating for the company in a research note 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 MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $54.82.

Xenon Pharmaceuticals Price Performance

The company has a market capitalization of $2.51 billion, a price-to-earnings ratio of -10.12 and a beta of 1.16. The stock's fifty day simple moving average is $31.52 and its two-hundred day simple moving average is $34.27.

Xenon Pharmaceuticals (NASDAQ:XENE - Get Free Report) last issued its earnings results on Monday, May 12th. The biopharmaceutical company reported ($0.83) earnings per share for the quarter, topping analysts' consensus estimates 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 period last year, the company posted ($0.62) earnings per share. On average, sell-side analysts predict that Xenon Pharmaceuticals Inc. will post -3.1 EPS for the current year.

Institutional Trading of Xenon Pharmaceuticals

Large investors have recently modified their holdings of the company. Prudential Financial Inc. increased its holdings in shares of Xenon Pharmaceuticals by 177.7% in the 4th quarter. Prudential Financial Inc. now owns 39,000 shares of the biopharmaceutical company's stock worth $1,529,000 after acquiring an additional 24,956 shares during the period. JPMorgan Chase & Co. increased its holdings in shares of Xenon Pharmaceuticals by 38.9% in the 4th quarter. JPMorgan Chase & Co. now owns 1,356,895 shares of the biopharmaceutical company's stock worth $53,190,000 after acquiring an additional 380,112 shares during the period. Northern Trust Corp increased its holdings in shares of Xenon Pharmaceuticals by 51.6% in the 4th quarter. Northern Trust Corp now owns 65,783 shares of the biopharmaceutical company's stock worth $2,579,000 after acquiring an additional 22,377 shares during the period. Franklin Resources Inc. increased its holdings in shares of Xenon Pharmaceuticals by 1.7% in the 4th quarter. Franklin Resources Inc. now owns 575,590 shares of the biopharmaceutical company's stock worth $22,563,000 after acquiring an additional 9,675 shares during the period. Finally, Ameriprise Financial Inc. increased its holdings in shares of Xenon Pharmaceuticals by 39.1% in the 4th quarter. Ameriprise Financial Inc. now owns 92,350 shares of the biopharmaceutical company's stock worth $3,620,000 after acquiring an additional 25,967 shares during the period. Institutional investors and hedge funds own 95.45% of the company's stock.

About Xenon Pharmaceuticals

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.

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