Lexicon Pharmaceuticals Inc. (NASDAQ :LXRX): The Best-Of-Breed For Investing?

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The Vanguard Group, Inc. recently announced the acquisition of new stake in Lexicon Pharmaceuticals Inc. (NASDAQ:LXRX). The institutional investor has increased its shareholding in the Healthcare company by 6.37% to 3.07 million shares with purchase of 0.18 million shares. This fresh investment now brings its stake to 2.87% valued currently at $5.87 million. In addition, Renaissance Technologies LLC raised its holdings by 0.46 million to 1.67 million shares. And AQR Capital Management LLC has lifted its position by 145.30% or 0.85 million shares – to 1.44 million shares.

With over 0.58 million Lexicon Pharmaceuticals Inc. (LXRX) shares trading Monday and a closing price of $1.91 on the day, the dollar volume was approximately $1.11 million. The shares have shown a negative weekly performance of -5.91% and its price on 07/06/20 lost nearly -1.55%. Currently, there are 106.54M common shares owned by the public and among those 101.38M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: Several analysts who have offered their price forecasts for LXRX have a consensus price objective of $4.70. The analysts have set the share’s price value over the next 12 months at a high of $9.00 and a low of $2.10 should the stock experience a downside. Incidentally, analysts’ outlook for the Lexicon Pharmaceuticals Inc. stock is 2.60 for the next 12 months. The estimated low will see the stock gain 9.05% over that period. But an upside of 78.78% will see the stock hit the forecast high price target while mean target price for the stock is $3.00.

Insiders at the company have transacted a total of 184 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 170 of these insider trades were purchases, accounting for 1,117,354 shares. Insider sales of the common stock occurred on 14 occasions, with total insider shares sold totaling 156,000 shares.

The top 3 mutual fund holders in Lexicon Pharmaceuticals Inc. are Fidelity Growth Company Fund, Vanguard Total Stock Market Index, and Fidelity Series Growth Company Fu. Fidelity Growth Company Fund owns 5.02 million shares of the company’s stock, all valued at over $9.58 million. The company sold -0.37 million shares recently to bring their total holdings to about 4.69% of the shares outstanding. Vanguard Total Stock Market Index has total holdings of 1.48 million shares valued at over $2.83 million and representing 1.39% of the shares outstanding. Fidelity Series Growth Company Fu sold 62500.0 shares to bring its total holdings to over 1.08 million shares at a value of $2.05 million. Fidelity Series Growth Company Fu now owns shares totaling to 1.01% of the shares outstanding.

Shares of Lexicon Pharmaceuticals Inc. (NASDAQ: LXRX) opened at $1.98, up $0.04 from a prior closing price of $1.94. However, the script later closed the day at $1.91, down -1.55%. The company’s stock has a 5-day price change of -5.91% and 8.52% over the past three months. LXRX shares are trading -53.98% year to date (YTD), with the 12-month market performance down to -69.63% lower. It has a 12-month low price of $1.13 and touched a high of $6.49 over the same period. Currently, 0.58 million shares have been traded, compared to an average intraday trading volume of 928.53K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.84%, -3.07%, and -35.14% respectively.

Institutional ownership of Lexicon Pharmaceuticals Inc. (NASDAQ: LXRX) shares accounts for 99.10% of the company’s 106.54M shares outstanding. Mutual fund holders own 65.84%, while other institutional holders and individual stakeholders account for 79.90% and 17.12% respectively.

It has a market capitalization of $211.67M and a beta (3y monthly) value of 1.14. The stock’s trailing 12-month PE ratio is 3.11, while the earnings-per-share (ttm) stands at $0.62. The company has a Quick Ratio of 3.60 with the debt-to-equity ratio at 4.47. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.00% over the week and 6.54% over the month.

Analysts forecast that Lexicon Pharmaceuticals Inc. (LXRX) will achieve an EPS of -$0.62 for the current quarter, -$0.45 for the next quarter and -$0.83 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.71 while analysts give the company a high EPS estimate of -$0.54. Comparatively, EPS for the current quarter was -$0.22 a year ago. Earnings per share for the fiscal year are expected to increase by 197.90%, and 59.90% over the next financial year. EPS over the next five years should compared to 23.30% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Lexicon Pharmaceuticals Inc. (LXRX) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 4 of the 5 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the LXRX, a number of firms have released research notes about the stock. Gabelli & Co stated their Hold rating for the stock in a research note on December 11, 2019. Citigroup coverage for the Lexicon Pharmaceuticals Inc. (LXRX) stock in a research note released on November 08, 2019 offered a Neutral rating with a price target of $4. Gabelli & Co was of a view on September 11, 2019 that the stock is Buy, while Stifel gave the stock Hold rating on July 29, 2019, issuing a price target of $10- $4. Gabelli & Co on their part issued Hold rating on March 25, 2019.

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