Xenon Pharmaceuticals (NASDAQ:XENE) Sees Unusually-High Trading Volume – Still a Buy?

Xenon Pharmaceuticals Inc. (NASDAQ:XENE) shares saw strong trading volume on Monday . 1,197,154 shares were traded during trading, a decline of 8% from the previous session’s volume of 1,300,912 shares.The stock last traded at $39.9010 and had previously closed at $39.75.

Trending Headlines about Xenon Pharmaceuticals

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

• Positive Sentiment: Epilepsy regulatory filing advances: Xenon submitted a New Drug Application to the FDA for azetukalner to treat focal seizures. FDA approval could provide Xenon with a path to its first commercial revenue, although approval is not guaranteed. Xenon Pharmaceuticals Seeks Epilepsy Approval
• Positive Sentiment: Epilepsy opportunity remains viable: Commentary noted that azetukalner could still serve as the foundation of Xenon’s investment case, supported by the company’s cash position to fund regulatory work and potential launch preparations. Azetukalner Still Has Potential As an Epilepsy Candidate
• Neutral Sentiment: Investor conference scheduled: Xenon will present at the TD Cowen Novel Mechanisms in Neuropsychiatry & Epilepsy Summit. The event could provide additional information on azetukalner, but the announcement contained no new clinical or financial data. Xenon to Present at TD Cowen Summit
• Negative Sentiment: Depression trial enrollment paused: Xenon voluntarily paused new enrollment in its Phase 3 depression studies, creating a significant setback for azetukalner’s psychiatric expansion prospects and contributing to the stock’s steep decline. Xenon Stock Sinks After Pausing Depression Study Enrollment
• Negative Sentiment: Analyst estimates were reduced: Analysts reportedly cut price targets and lowered estimates for azetukalner’s psychiatric commercial opportunity following the enrollment pause, increasing uncertainty around Xenon’s long-term growth potential. Xenon Investigation Notice
• Negative Sentiment: Investor investigations announced: Wolf Popper and other firms announced investigations into potential claims on behalf of Xenon investors after the disclosure, adding legal and reputational overhang to the stock. Wolf Popper Investigation Announcement

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on XENE. Weiss Ratings reissued a “sell (d-)” rating on shares of Xenon Pharmaceuticals in a report on Monday, July 6th. Wedbush decreased their price objective on Xenon Pharmaceuticals from $71.00 to $55.00 and set an “outperform” rating on the stock in a research note on Friday, September 18th. JPMorgan Chase & Co. lifted their price objective on Xenon Pharmaceuticals from $80.00 to $82.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 27th. Wall Street Zen lowered shares of Xenon Pharmaceuticals from a “sell” rating to a “strong sell” rating in a report on Saturday. Finally, Robert W. Baird reduced their target price on shares of Xenon Pharmaceuticals from $97.00 to $90.00 and set an “outperform” rating on the stock in a report on Friday, September 18th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $70.93.

Xenon Pharmaceuticals Stock Performance

The company has a market capitalization of $3.78 billion, a price-to-earnings ratio of -8.25 and a beta of 0.61. The company has a fifty day simple moving average of $60.98 and a two-hundred day simple moving average of $57.99.

Xenon Pharmaceuticals (NASDAQ:XENE) last posted its quarterly earnings data on Thursday, August 6th. The biopharmaceutical company reported ($1.11) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.16) by $0.05. During the same period last year, the firm posted ($1.07) EPS. As a group, analysts expect that Xenon Pharmaceuticals Inc. will post -4.7 EPS for the current year.

Insider Transactions at Xenon Pharmaceuticals

In other news, insider Christopher Kenney sold 7,068 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $60.25, for a total transaction of $425,847.00. Following the transaction, the insider directly owned 2 shares in the company, valued at $120.50. This represents a 99.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Steven Gannon sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $64.06, for a total transaction of $640,600.00. Following the completion of the sale, the director directly owned 1,870 shares in the company, valued at $119,792.20. This represents a 84.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.91% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Xenon Pharmaceuticals

A number of large investors have recently bought and sold shares of the stock. Squarepoint Ops LLC purchased a new stake in Xenon Pharmaceuticals during the 2nd quarter worth $6,813,000. BlackRock Inc. purchased a new position in Xenon Pharmaceuticals in the second quarter valued at about $454,057,000. Siren L.L.C. lifted its stake in shares of Xenon Pharmaceuticals by 62.2% during the first quarter. Siren L.L.C. now owns 1,318,564 shares of the biopharmaceutical company’s stock worth $76,674,000 after purchasing an additional 505,803 shares in the last quarter. Bank of New York Mellon Corp boosted its position in shares of Xenon Pharmaceuticals by 2.3% in the first quarter. Bank of New York Mellon Corp now owns 396,138 shares of the biopharmaceutical company’s stock worth $23,035,000 after buying an additional 8,980 shares during the period. Finally, Nicholas Investment Partners LP boosted its position in shares of Xenon Pharmaceuticals by 104.0% in the fourth quarter. Nicholas Investment Partners LP now owns 242,989 shares of the biopharmaceutical company’s stock worth $10,891,000 after buying an additional 123,891 shares during the period. Hedge funds and other institutional investors own 95.45% of the company’s stock.

About Xenon Pharmaceuticals

Xenon Pharmaceuticals Inc (NASDAQ:XENE) is a clinical-stage biopharmaceutical company focused on developing medicines for neurological and psychiatric disorders. The company uses its expertise in ion channels, which regulate the electrical activity of nerve cells, to discover and advance potential treatments for conditions with significant unmet medical needs.

Xenon’s leading investigational product is azetukalner (XEN1101), an oral, small-molecule potassium-channel opener being studied in epilepsy, including focal-onset seizures, and major depressive disorder.