Exelixis (NASDAQ:EXEL) Stock Price Up 8.1% on Strong Earnings

Shares of Exelixis, Inc. (NASDAQ:EXEL) shot up 8.1% during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $71.37 and last traded at $71.53. Approximately 444,332 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 2,565,904 shares. The stock had previously closed at $66.20.

The biotechnology company reported $0.94 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.05. The business had revenue of $658.70 million for the quarter, compared to analysts’ expectations of $646.51 million. Exelixis had a return on equity of 42.17% and a net margin of 35.33%. The business’s quarterly revenue was up 10.2% on a year-over-year basis. During the same period last year, the firm earned $0.78 earnings per share.

Key Stories Impacting Exelixis

Here are the key news stories impacting Exelixis this week:

• Positive Sentiment: Q3 earnings and revenue beat expectations. Exelixis reported revenue of $658.7 million, up 10.2% year over year, versus a consensus estimate of approximately $646.5 million. Non-GAAP EPS was $0.94, ahead of the $0.89 estimate and above $0.78 a year earlier. CABOMETYX remained the primary growth and profitability driver. Exelixis Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Pipeline catalysts are becoming more visible. Exelixis said the FDA has assigned a March 3, 2027 PDUFA date for zanzalintinib, while the company continues advancing “Wave 2” pivotal development plans. A regulatory decision and progress toward additional indications could expand the company’s growth beyond CABOMETYX. Exelixis Zanzalintinib PDUFA and Wave 2 Plans
• Positive Sentiment: Profitability and cash generation remain strong. Third-quarter net income was reported at $218.1 million, operating cash flow reached $280.0 million, and operating profit increased year over year, supporting continued investment in clinical programs. Exelixis Third-Quarter Results and Corporate Updates
• Neutral Sentiment: Investors still face a valuation and execution debate. EXEL’s strong rally has pushed the stock close to its 52-week high, while the median analyst price target cited in recent coverage is $52, below the current trading range. Future performance will depend on successful zanzalintinib development and regulatory execution.
• Negative Sentiment: Recent insider activity has been one-sided. Several executives and directors reportedly sold shares during the past six months, with no insider purchases disclosed. These sales may weigh on sentiment, although they do not necessarily indicate deteriorating fundamentals. Exelixis Q3 Earnings and Insider Activity

Analysts Set New Price Targets

EXEL has been the topic of several recent research reports. Wall Street Zen raised shares of Exelixis from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 24th. Citizens Jmp increased their price objective on Exelixis from $55.00 to $65.00 and gave the company a “market outperform” rating in a research note on Monday, October 19th. UBS Group set a $55.00 price objective on Exelixis in a report on Monday, August 3rd. Royal Bank Of Canada lifted their price target on Exelixis from $45.00 to $51.00 and gave the stock a “sector perform” rating in a research report on Friday, October 9th. Finally, HC Wainwright reaffirmed a “buy” rating and issued a $56.00 target price on shares of Exelixis in a report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Exelixis presently has a consensus rating of “Hold” and a consensus price target of $51.93.

Insider Activity

In other Exelixis news, Director Mary Beckerle sold 9,812 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $53.66, for a total transaction of $526,511.92. Following the sale, the director directly owned 16,079 shares of the company’s stock, valued at approximately $862,799.14. This represents a 37.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Cassaday & Co Wealth Management LLC bought a new position in Exelixis during the first quarter valued at approximately $27,000. Western Wealth Management LLC bought a new position in shares of Exelixis during the 1st quarter worth about $29,000. Mather Group LLC. raised its holdings in Exelixis by 124.6% in the 3rd quarter. Mather Group LLC. now owns 757 shares of the biotechnology company’s stock valued at $44,000 after acquiring an additional 420 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Exelixis in the second quarter worth $46,000. Finally, Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Exelixis during the 2nd quarter valued at about $57,000. 85.27% of the stock is currently owned by institutional investors and hedge funds.

Exelixis Price Performance

The stock has a market cap of $17.45 billion, a P/E ratio of 22.26, a PEG ratio of 1.86 and a beta of 0.47. The business’s 50 day simple moving average is $59.07 and its 200 day simple moving average is $50.79.

About Exelixis

Exelixis, Inc is a biopharmaceutical company focused on discovering, developing, and commercializing medicines for cancer and other serious diseases. The company’s research programs center primarily on targeted therapies, including treatments designed to inhibit signaling pathways involved in tumor growth and progression.

Exelixis’ lead product is CABOMETYX (cabozantinib), an oral medicine approved in the United States for certain patients with renal cell carcinoma, hepatocellular carcinoma, and differentiated thyroid cancer.