AllianceBernstein L.P. has reduced its holdings in Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) by 9.9% in the fourth quarter, according to its most recent filing with the U.S. Securities and Exchange Commission (SEC). The firm now owns 246,121 shares of Lexicon, valued at $182,000, following the sale of 26,920 shares during the period. This adjustment marks a significant shift in the company’s investment strategy for the biopharmaceutical sector.
AllianceBernstein’s Shift in Investment
AllianceBernstein’s recent SEC filing revealed a reduction in its stake in Lexicon Pharmaceuticals, trimming its ownership by nearly 10%. As of the latest filing, the investment firm holds 246,121 shares, a slight decline from previous quarters. Despite the sale, the total value of its stake stands at $182,000.
This change reflects broader trends among institutional investors adjusting their positions in biopharmaceutical stocks, particularly those facing financial challenges. With Lexicon’s stock price fluctuating and its business in transition, investors are recalibrating their portfolios in response.
Other Institutional Investors Adjust Positions
AllianceBernstein is not the only institutional investor making adjustments to its Lexicon Pharmaceuticals holdings. Several others have recently bought or sold shares, including Virtu Financial LLC, which acquired a new stake valued at $66,000 during the fourth quarter. Additionally, the Swiss National Bank raised its stake in Lexicon by 34.4%, bringing its total to 426,600 shares, valued at $315,000.
Notably, the Teacher Retirement System of Texas increased its holdings by 60.3%, acquiring 24,615 additional shares. Meanwhile, Geode Capital Management LLC and Hennion & Walsh Asset Management Inc. also expanded their positions. Overall, institutional investors and hedge funds now control 74.7% of Lexicon Pharmaceuticals’ stock.
Lexicon Pharmaceuticals’ Financials
On the stock performance front, shares of Lexicon Pharmaceuticals opened at $0.58 on Tuesday. Over the past few months, the company has seen a significant dip in stock value, with a 52-week low of $0.28 and a high of $2.45. Currently, the company is valued at $141.59 million, with a negative price-to-earnings (P/E) ratio of -0.77.
Despite these challenges, Lexicon’s quarterly earnings have surpassed expectations. For the most recent quarter, Lexicon reported earnings of -$0.09 per share, which beat analysts’ predictions of -$0.11. The company’s revenue of $26.55 million for the quarter also far exceeded the expected $6.48 million, signaling some positive movement in its financials.
Analyst Ratings and Price Targets
Analysts have mixed opinions on Lexicon Pharmaceuticals. Leerink Partners revised its target price from $2.00 to $1.00, maintaining a “market perform” rating. In contrast, HC Wainwright remains bullish with a “buy” rating and a price target of $4.00 per share. Meanwhile, Needham & Company LLC and Piper Sandler have both kept “hold” ratings on the stock but adjusted their target prices. Piper Sandler lowered its price target from $10.00 to $6.00.
Currently, Lexicon Pharmaceuticals has a consensus rating of “Hold” among analysts, with an average price target of $3.67.
Clinical Developments and Future Outlook
Lexicon Pharmaceuticals continues to focus on developing treatments for various medical conditions. The company is advancing its pipeline of drug candidates, including Sotagliflozin, which has completed Phase III clinical trials for treating heart failure and type 1 diabetes. Additionally, LX9211 is in Phase II trials for neuropathic pain, and LX2761 is in early-stage development for gastrointestinal disorders.
These developments position Lexicon as a key player in biopharmaceutical research, but its financial struggles and the market volatility have created uncertainty among investors.
Conclusion
As AllianceBernstein L.P. adjusts its position in Lexicon Pharmaceuticals, the broader trend among institutional investors reflects caution regarding the company’s long-term prospects. With mixed analyst opinions and fluctuating stock performance, the future of Lexicon Pharmaceuticals remains uncertain. Investors are advised to closely monitor upcoming clinical results and financial reports to gauge the company’s potential for recovery.
