Lexicon Pharmaceuticals, Inc. (LXRX) Stock: Here’s Why It’s Climbing

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Lexicon Pharmaceuticals, Inc. (LXRX) is headed up in the market in today’s trading session. The company, one that is focused in the biotechnology space, is currently priced at $1.50 after heading up 17.58% so far today. When it comes to biotechnology companies, there are a number of factors that have the ability to lead to price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines associated with LXRX:

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Aug-09-19 07:00AM Lexicon Pharmaceuticals to Present at Upcoming Investor Conference
Aug-08-19 05:23PM Lexicon Pharmaceuticals Announces Publication of Positive Data for Zynquista (Sotagliflozin) on Cardiorenal Clinical Biomarkers in Adults With Type 1 Diabetes
Aug-03-19 06:54PM Edited Transcript of LXRX earnings conference call or presentation 31-Jul-19 12:00pm GMT
Jul-31-19 11:36AM Biotech Stock Roundup: Celgene, Amgen, Gilead Impress in Q2, Other Pipeline Updates
09:15AM Lexicon Pharmaceuticals (LXRX) Reports Q2 Loss, Lags Revenue Estimates

Nonetheless, any time investors are making a decision with regard to investing, prospective investors should look at far more than just news, this is especially the case in the highly speculative biotechnology space. Here’s what’s happening in regard to Lexicon Pharmaceuticals, Inc..

Returns That LXRX Investors Have Seen

Although a single session gain, like the gain that we’re seeing from Lexicon Pharmaceuticals, Inc. may lead to excitement in some investors, a single session gain alone should not be the basis of a decision to, or not to, invest in a stock. It’s always smart to dig into trends just a single trading day. In the case of LXRX, here are the movements that investors have seen:

  • Past 5 Sessions – Over the last 5 trading sessions, LXRX has generated a change in value amounting to -2.29%.
  • Past 30 Days – The monthly performance from Lexicon Pharmaceuticals, Inc. works out to -79.81%.
  • Past Three Months – Throughout the last 3 months, the stock has generated a return that works out to -81.40%
  • Past Six Months – Over the last six months, we have seen a change that equates to -74.19% from the stock.
  • Year To Date – Since the open of this year LXRX has resulted in a return on investment of -80.72%.
  • Full Year – Lastly, in the last full year, we’ve seen performance that comes to -88.37% from LXRX. In this period of time, the stock has sold at a high price of -87.33% and a low of 33.78%.

Ratios Worth Paying Attention To

Looking at a few ratios associated with a stock can provide prospective investors a view of how dangerous and/or potentially profitable a pick may be. Here are a few of the important ratios to look at when digging into LXRX.

Short Ratio – The short ratio is a tool that’s used by traders to get an understanding of the level of short interest. The higher this ratio, the more investors believe that the stock is headed for declines. Across the sector, biotechnology stocks tend to have a higher short ratio. On the other hand, we also tend to see quite a few short squeezes in the space. Nonetheless, when it comes to Lexicon Pharmaceuticals, Inc., it’s short ratio amounts to 8.99.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure If a company is able to pay for its debts when they come due with only quick assets or current assets. In the biotech industry, companies rely heavily on continued support from investors, the quick and current ratios can look upsetting. Nonetheless, several gems in the biotechnology sector come with great quick and current ratios. As it relates to LXRX, the quick and current ratios come to 5.00 and 5.20 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the share price. In this particular case, the book to share value ratio equates to -0.43.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. Many early stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotech space, this is a very important ratio to consider. In this case, the cash to share value comes to 1.15.

What Analysts Say About Lexicon Pharmaceuticals, Inc.

While it’s never a smart idea to blindly follow the thoughts of analysts, it is a good idea to consider their thoughts when validating your own due diligence when it comes to making an investment decision in the biotech sector. Here are the most recent moves that we have seen from analysts when it comes to LXRX.

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Jul-29-19 Downgrade Stifel Buy → Hold $10 → $4
Mar-25-19 Upgrade Gabelli & Co Sell → Hold
Jul-31-18 Reiterated Stifel Buy $24 → $23
Feb-23-18 Downgrade Needham Buy → Hold
Feb-14-18 Downgrade JP Morgan Neutral → Underweight $10

Is Big Money Interested In Lexicon Pharmaceuticals, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in LXRX, here’s what we’re seeing:

Institutions own 98.90% of the company. Institutional interest has moved by -0.54% over the past three months. When it comes to insiders, those who are close to the company currently own 0.30% percent of LXRX shares. Institutions have seen ownership changes of an accumulative 10.83% over the last three months.

Looking At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 116.00M shares of Lexicon Pharmaceuticals, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, LXRX has a float of 105.85M.

It’s also important to dig into the short float. Think about it, if a high portion of the float is sold short, the overall opinion among investors is that the stock is going to take a dive. As far as it relates to LXRX, the percentage of the float that is currently being sold short is 8.77%. Most investors would say that a concerning short percent of the float is any percentage over 40%. Through my work, I’ve found that a short ratio over 26% is generally a a play that could prove to be very risky.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.61. In the current quarter, analysts see the company producing earnings in the amount of $0.04. Over the last 5 years, LXRX has generated revenue in the amount of $95.30% with earnings coming in at 4.30%. On a quarter over quarter basis, earnings have seen movement of 48.10% and revenue has seen movement of -63.80%.

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