Lexicon stock: buy or sell?

LXRX stock price: $4.87 15.13% At close on December 6th, 2019

Updated on:
December 6th, 2019

2

Lexicon shares crossed up the SMA line of 200d today and closed at $4.87. On Monday LXRX plunged a bloodcurdling -11.71%. Friday was the 4th green session in a row, gaining 48.44%.

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of pharmaceutical products for the treatment of human diseases.

Should I buy Lexicon stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to choose your own trading plan that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Lexicon stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean LXRX will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Lexicon stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we gathered 8 ratings published for LXRX stock in the last month.

The general sentiment of these ratings is bullish for LXRX stock, with 5 positive ratings.
Is LXRX a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-11GabelliHoldBuy
2019-8-1Wedbushn/aOutperform
2019-7-30Citigroupn/aBuy
2019-7-29Stifel NicolausBuyHold
2019-3-4Wedbushn/aOutperform
2019-3-25Stifel Nicolausn/aBuy
2019-3-25Needham & Company LLCn/aHold
2019-3-25GabelliSellHold

Lexicon stock analysis

Daily outlook

Lexicon crossed up the simple moving average line of 200 days today and closed at $4.87.

Lexicon shares broke up the SMA line of 200 days today and closed at $4.87. In the last 21 days when SMA50d and SMA100d crossed up, LXRX price gained $1.45 per share (42.40%).

LXRX stock chart (daily)

Weekly outlook

After sliding a bloodcurdling -9.07% in a week last week, Lexicon closed this week at $4.87 and climbed a super good 37.96%.

Lexicon Pharmaceuticals shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom by mid November, LXRX stock climbed unceasignly breaking out above its last top at $4.31. Since price and SMA40w lines crossed up this week, LXRX climbed $1.34 (37.96%). Since mid November when SMA10w and SMA20w crossed up, LXRX price gained $1.35 per share (38.35%).

LXRX stock chart (weekly)

Lexicon stock price history

Lexicon stock went public on April 7th, 2000 with a price of $154.001. Since then, LXRX stock lost a -96.80%, with a yearly average of -5.10%.

1: Adjusted price after possible price splits or reverse-splits.

Lexicon stock historical price chart

LXRX stock reached 52-week highs on March at $8.39, and all-time highs 2000-07-21 with a price of 344.75.

Lexicon stock price target is $12.50

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 6 price predictions for Lexicon stock:
LXRX stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-11GabelliUpgradesn/a$3.00-
2019-8-1WedbushReiterates$35.00$17.00-51.4%
2019-7-30CitigroupLowers Target$15.00$3.00-80%
2019-7-29Stifel NicolausDowngrades$10.00$4.00-60%
2019-3-4WedbushReiterates$36.00$38.005.6%
2019-3-25Stifel NicolausLowers Target$14.00$10.00-28.6%
(in average)$22.00$12.50-43.0%
Moving in a range from $38.00 and $3.00, the price prediction for Lexicon stock is $12.50. In average, analysts' outlook on LXRX price forecast is negative, reducing the forecast by a -43.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Lexicon Pharmaceuticals disappointed experts on March when it reported an Earnings per Share (EPS) of $-0.16 when the market consensus was $-0.28.
LXRX earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.33n/a
2017-Q2-n/a-0.33n/a
2017-Q32017-11-08-0.37-0.29n/a
2017-Q42018-02-22-0.43-0.31n/a
2018-Q12018-05-03-0.42-0.4n/a
2018-Q22018-07-30-0.35-0.33n/a
2018-Q32018-11-01-0.32-0.26n/a
2018-Q42019-03-13-0.28-0.16n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a frightening slide of -31.06% to $63.21 million USD. When comparing 2018 vs 2017, aligned with this, profit margin (that is, the net income divided by revenues) collapsed a -56.57% to -190.71%.

LXRX annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2.22 M-$-104.13 M-4690.5%-
2014$23 M929.46%$-100.29 M-438.8%-3.68%
2015$130 M468.89%$-4.68 M-3.6%-95.33%
2016$83 M-35.90%$-141.43 M-169.7%2,920.70%
2017$92 M10.02%$-122.99 M-134.1%-13.04%
2018$63 M-31.06%$-120.55 M-190.7%-1.99%

Quarterly financial results

Lexicon posted $17.39 M in revenues for 2018-Q4, a 153.69% improvement compared to previous quarter. Reported quarter income marked $-16.26 million with a profit margin of -93.46%. Profit margin climbed a 307.83% compared to previous quarter when profit margin was -401.28%. When comparing revenues to same quarter last year, Lexicon Pharmaceuticals sales marked a dreadful loss and plummed a -47.37%.
LXRX quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$18 M-$-34.89 M-190.8%-
2017-Q2$12 M-34.12%$-35.06 M-291.0%0.49%
2017-Q3$27 M123.59%$-30.72 M-114.0%-12.37%
2017-Q4$33 M22.66%$-28.38 M-85.9%-7.63%
2018-Q1$25 M-23.72%$-42.08 M-166.9%48.27%
2018-Q2$14 M-45.44%$-34.71 M-252.4%-17.51%
2018-Q3$7 M-50.15%$-27.51 M-401.3%-20.73%
2018-Q4$17 M153.69%$-16.26 M-93.5%-40.92%

Lexicon ownership

When you are planning to invest in a stock, it's always worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Lexicon, 0.40% of all outstanding shares are owned by its staff.

Lexicon Pharmaceuticals stock is reported to have a 101.30% of institutional ownership what is obvious to be impossible. The reason of having an institutional holding over 100% is because of the traded shares are being used for short trading. If you are interested in learning more about why this happens, read this interesting article at Investopedia.

For a better understanding, the next table shows ownership data compared to other related stocks:

LXRXAERIALBOBMRNESPR
Market cap$517.5 M$920.4 M$271.6 M$14.4 B$1.3 B
Total shares106.3 M46.3 M12.7 M179.6 M27.3 M
Float shares0.0 M35.5 M9.3 M178.5 M24.2 M
  - Institutional holdings (%)101.3%112.5%75.8%102.9%108.6%
  - Insider holdings (%)0.4%1.8%12.3%0.4%5.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Lexicon summary

Friday, December 6th, 2019
Open$4.25
Close$4.87
Day range$4.20 - $5.13
Previous close$4.23
Session gain15.13%
Average true range$0.43
50d mov avg$3.59
100d mov avg$2.98
200d mov avg$4.56
Daily pattern
Weekly pattern lb03c

Lexicon performance

To measure stock performance is always good to compare with competitors or related stocks. We picked Aerie Pharmaceuticals, Albireo Pharma, BioMarin Pharmaceutical, Esperion Therapeutics, Illumina, Ligand Pharmaceuticals, Ultragenyx Pharmaceutical, Regeneron Pharmaceuticals and Thermo Fisher Scientific as the bechmarking frame for Lexicon stock.
Stock3m6m12m
LXRXLexicon Pharmaceu...252.90%-13.81%-31.50%
AERIAerie Pharmaceuti...5.58%-43.50%-49.94%
ALBOAlbireo Pharma-15.28%-34.05%-16.05%
BMRNBioMarin Pharmace...10.80%-0.89%-13.79%
ESPREsperion Therapeu...35.06%-5.22%-8.72%
ILMNIllumina20.91%-2.69%1.57%
LGNDLigand Pharmaceut...23.12%-4.90%-25.83%
RAREUltragenyx Pharma...-3.93%-28.26%-7.84%
REGNRegeneron Pharmac...27.49%21.37%-0.15%
TMOThermo Fisher Sci...8.57%13.79%36.10%

Lexicon competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Lexicon Pharmaceuticals. We chose 9 companies as Lexicon Pharmaceuticals competitors as they are in the same industry or have similar market objectives.