Lexicon Pharmaceuticals (NASDAQ:LXRX) Downgraded to “Sell” Rating by Wall Street Zen

Wall Street Zen downgraded shares of Lexicon Pharmaceuticals (NASDAQ:LXRX) from a hold rating to a sell rating in a research note released on Saturday.

LXRX has been the subject of a number of other research reports. Zacks Research cut Lexicon Pharmaceuticals from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. Citigroup upped their price objective on shares of Lexicon Pharmaceuticals from $2.30 to $3.10 and gave the company a “buy” rating in a research report on Monday, May 11th. Finally, Weiss Ratings upgraded Lexicon Pharmaceuticals from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, July 23rd. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $4.55.

Lexicon Pharmaceuticals Stock Performance

Shares of LXRX stock opened at $2.47 on Friday. The company has a current ratio of 18.80, a quick ratio of 18.77 and a debt-to-equity ratio of 0.24. The company has a market cap of $1.10 billion, a PE ratio of -16.47 and a beta of 1.08. The company’s fifty day simple moving average is $2.20 and its 200-day simple moving average is $1.86. Lexicon Pharmaceuticals has a 52 week low of $1.02 and a 52 week high of $2.68.

Lexicon Pharmaceuticals (NASDAQ:LXRX) last issued its earnings results on Thursday, August 6th. The biopharmaceutical company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). Lexicon Pharmaceuticals had a negative return on equity of 39.56% and a negative net margin of 147.38%.The company had revenue of $0.69 million during the quarter, compared to analysts’ expectations of $3.99 million. As a group, equities research analysts anticipate that Lexicon Pharmaceuticals will post -0.17 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Siren L.L.C. increased its position in shares of Lexicon Pharmaceuticals by 13.8% in the 1st quarter. Siren L.L.C. now owns 44,303,518 shares of the biopharmaceutical company’s stock worth $69,113,000 after purchasing an additional 5,384,615 shares during the last quarter. UBS Group AG grew its stake in Lexicon Pharmaceuticals by 752.1% in the fourth quarter. UBS Group AG now owns 3,007,237 shares of the biopharmaceutical company’s stock worth $3,458,000 after purchasing an additional 2,654,315 shares in the last quarter. ADAR1 Capital Management LLC acquired a new position in Lexicon Pharmaceuticals in the first quarter worth about $1,170,000. Ishara Investments LP bought a new stake in Lexicon Pharmaceuticals in the fourth quarter valued at about $1,012,000. Finally, Bank of America Corp DE increased its holdings in Lexicon Pharmaceuticals by 415.3% in the first quarter. Bank of America Corp DE now owns 526,103 shares of the biopharmaceutical company’s stock valued at $821,000 after buying an additional 424,006 shares during the last quarter. 74.70% of the stock is owned by institutional investors and hedge funds.

Lexicon Pharmaceuticals News Roundup

Here are the key news stories impacting Lexicon Pharmaceuticals this week:

• Positive Sentiment: Lexicon completed enrollment in the pivotal Phase 3 SONATA-HCM study of sotagliflozin for hypertrophic cardiomyopathy, exceeding its 500-patient enrollment target. Top-line results remain expected in the first quarter of 2027, providing a potentially significant future catalyst. Lexicon Pharmaceuticals Reports Second Quarter 2026 Financial Results and Provides Clinical Updates
• Positive Sentiment: The company said its activities to resubmit the ZYNQUISTA NDA for glycemic control in adults with type 1 diabetes are nearing completion, with resubmission anticipated in the fourth quarter of 2026. Phase 1 development of obesity candidate LX9851 is also continuing through partner Novo Nordisk, and Lexicon could receive an additional $10 million milestone payment as early as later this year. Lexicon Pharmaceuticals Q2 2026 Earnings Call Transcript
• Positive Sentiment: Lexicon reported $190.6 million in cash and investments at June 30, supported by $96.2 million in stock-sale proceeds, giving it additional resources to fund clinical development. A Hercules Capital facility also provides up to $100 million in potential financing, subject to conditions.
• Neutral Sentiment: Management emphasized disciplined capital allocation and early commercial planning for its late-stage pipeline. However, the principal value drivers remain dependent on successful clinical results and regulatory approval.
• Negative Sentiment: Second-quarter revenue fell to approximately $0.7 million from $28.9 million a year earlier because the prior-year period included substantial Novo Nordisk licensing revenue. The company posted a net loss of roughly $31.8 million, or $0.07 per share, versus net income of $3.3 million in the prior-year quarter. Revenue also came in below analyst expectations, while research and development spending rose to $17.4 million as SONATA-HCM costs increased. Lexicon Pharmaceuticals Reports Q2 Loss, Lags Revenue Estimates

About Lexicon Pharmaceuticals

Lexicon Pharmaceuticals, Inc is a biopharmaceutical company focused on the discovery and development of novel medicines through its proprietary genome biology platform. By leveraging large-scale gene knockout libraries, the company identifies potential therapeutic targets and advances them through preclinical and clinical development. Lexicon’s approach emphasizes the translation of genetic insights into targeted therapies for a range of human diseases.

The company’s most advanced product is telotristat ethyl (sold under the brand name XERMELO), an oral treatment approved for the management of carcinoid syndrome diarrhea in patients inadequately controlled by somatostatin analog therapy.