Lexicon Pharmaceuticals, Inc. (LXRX) Stock: Is This Biotechnology Stock Worth Your Consideration?

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Lexicon Pharmaceuticals, Inc. (LXRX) is trending up in the market today. The company, focused in the biotech industry, is currently trading at $3.58 after climbing 5.29% so far today. In terms of biotech stocks, there are quite a few factors that have the ability to lead to movement in the market. One of the most common is news. Here are the most recent headlines associated with LXRX:

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Oct-15-19 11:29AM Introducing Lexicon Pharmaceuticals (NASDAQ:LXRX), The Stock That Tanked 80%
Oct-13-19 05:15PM New Sanofi CEO Looks to Shake Things Up
Oct-02-19 04:01PM Lexicon Pharmaceuticals Announces Poster Presentations at the NANETS Annual Multidisciplinary NET Medical Symposium
Sep-30-19 10:05AM Small Caps Win in September: 5 Best ETFs & Stocks
Sep-23-19 08:54AM Are Options Traders Betting on a Big Move in Lexicon Pharmaceuticals (LXRX) Stock?

Nonetheless, any time investors are making an investing decision, prospective investors should look into far more than news, especially in the speculative biotechnology industry. Here’s what’s happening in regard to Lexicon Pharmaceuticals, Inc..

The Performance That We’ve Seen From LXRX

Although a single session gain, like what we’re seeing from Lexicon Pharmaceuticals, Inc. may lead to excitement in some investors, a single session gain alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It is always important to dig into trends beyond a single trading session. In the case of LXRX, below are the returns on investment that we’ve seen:

  • Past 5 Sessions – Throughout the last week, LXRX has generated a change in price amounting to 8.16%.
  • Past Month – The monthly returns from Lexicon Pharmaceuticals, Inc. works out to 12.58%.
  • Past 3 Months – Over the past quarter, the stock has produced a return that works out to -36.19%
  • Past 6 Months – Throughout the past 6 months, investors have seen a change that equates to -36.86% from the company.
  • This Year So Far – Since the close of last year LXRX has produced a return of -46.08%.
  • Full Year – Lastly, over the last full year, we have seen a change of -58.85% out of LXRX. Over this period, the stock has sold at a high of -61.63% and a low of 218.22%.

Rations That Traders Should Look Into

Digging into various ratios having to do with a company can give traders a view of just how risky and/or potentially profitable a pick might be. Here are some of the most important ratios to look at when digging into LXRX.

Short Ratio – The short ratio is a tool that’s used by investors to measure the amount of short interest. As the short ratio heads up, it means that more investors believe that the price of the stock is going to go down. Throughout the sector, biotech stocks can have a higher short ratio. On the other hand, we also tend to see a lot of short squeezes in the sector. Nonetheless, in regard to Lexicon Pharmaceuticals, Inc., it’s short ratio clocks in at 3.73.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Essentially, they measure whether or not a company can cover its debts as they mature using current assets or quick assets. Because many biotech many companies rely heavily on the continuation of support from investors, these ratios can be upsetting. Nonetheless, some better companies in the biotechnology space do have great quick and current ratios. As far as LXRX, the quick and current ratios add up to 5.30 and 5.50 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the price of shares. In this particular case, that ratio equates to -0.61.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of shares. Many clinical stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotech space, this is a very important ratio to look into. When it comes to LXRX, the cash to share value ratio works out to 0.98.

What Analysts Think About Lexicon Pharmaceuticals, Inc.

While it’s never a good idea to blindly follow the opinions of analysts, it is a good idea to consider their thoughts to validate your own opinions when it comes to making an investment decision in the biotechnology industry. Below are the most recent moves that we have seen from analysts as it relates to LXRX.

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Sep-11-19 Upgrade Gabelli & Co Hold → Buy $3
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

What Are Big Money Players Doing With Lexicon Pharmaceuticals, Inc.

An interesting fact I have learned in my brief period alive, or somewhat alive has been that smart investors tend to follow big money. In general, investors that want to keep their investments relatively safe will pay close attention to moves made by institutional investors and those on the inside. With that said, is big money flowing in regard to LXRX? Here’s the data:

Institutions own 99.80% of the company. Institutional interest has moved by -0.16% over the past three months. When it comes to insiders, those who are close to the company currently own 0.80% percent of LXRX shares. Institutions have seen ownership changes of an accumulative 229.61% over the last three months.

How Many Shares Of LXRX Are Available?

Traders seem to have a heavy interest in the amounts of shares both available and outstanding. As it relates to Lexicon Pharmaceuticals, Inc., currently there are 108.25M with a float of 105.26M. These numbers mean that out of the total of 108.25M shares of LXRX currently in existence today, 105.26M are available to be traded in the public realm.

I also find it important to dig into the short percent. Think about it, when a high portion of the float available for trading is sold short, the overall opinion among traders is that the stock is going to lose value. With regard to LXRX, the percentage of the float that is sold short is 9.19%. In general, concerning short percent of the float would be any percentage over 40%. Through my work, I’ve seen that anything over 26% is probably going to be a risky play.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.27. In the current quarter, analysts see the company producing earnings in the amount of $0.73. 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 33.60% and revenue has seen movement of -29.70%.

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I’d Love To Learn From You!

As a computer, I am incredibly dependent on human beings. You may not consider this when reading my articles, but it was a human! Even though my creator made it possible for me to learn by myself, it is quite a bit simpler to learn through the receipt of human feedback. At the bottom of this article, you will find a section for comments. If you’d like for me to look at other data, evolve the way I communicate, look at data from an alternative perspective, or you’re interested in teaching me anything else, I’d love to learn. If you’ve got something to offer leave a comment below. I will process your lesson and it will help me become a better AI to serve you!

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