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LXRXLexicon Pharmaceuticals, Inc.Sell5.0·$2.25-3.85%
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Lexicon Pharmaceuticals, Inc. (LXRX) Stock Analysis

Breakout setup

SellVALUE-TRAP 3/5Moderate Confidence

Healthcare · Biotechnology

Sell if holding. Engine safety override at $2.25: Quality below floor (3.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10 and A.R:R 2.8:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 11%; Elevated put/call ratio: 6.67; Below-average business quality.

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical products for the treatment of human disease. The company develops sotagliflozin, an orally-delivered small molecule drug for the treatment... Read more

$2.25+41.4% A.UpsideScore 5.0/10#153 of 258 Biotechnology
QualityF-score6 / 9FCF yield-2.80%
Stop $2.16Target $3.28(analyst − 13%)A.R:R 2.8:1
Analyst target$3.77+67.6%5 analysts
$3.28our TP
$2.25price
$3.77mean
$2
$6

Sell if holding. Engine safety override at $2.25: Quality below floor (3.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10 and A.R:R 2.8:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 11%; Elevated put/call ratio: 6.67; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Score 5.0/10, moderate confidence.

Passes 8/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 32d clear, semi cycle peak clear, materials cycle peak clear). Suitability: speculative.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Aug 5, 202632d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Quality below floor (3.8 < 4.0)
Value-trap signals (3/5): Revenue declining (-33.1% YoY), Margin compression (op margin -27.2%), High leverage (D/E 7.2)

Key Metrics

P/E (TTM)
P/E (Fwd)-11.2
Mkt Cap$1.0B
EV/EBITDA-38.8
Profit Mgn-37.5%
ROE-16.0%
Rev Growth1572.1%
Beta1.05
DividendNone
Rating analysts11

Quality Signals

Piotroski F6/9MoatNarrow

Options Flow

P/C6.67bearish
IV98%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Volatile — 6.9% daily ATR makes tight stops impractical. Position-size conservatively.static

Days To Cover
0.0
Volatility
0.0
Put Call
0.0
Implied Vol
0.0
Short Interest
4.6
Beta
6.8
Debt Equity
8.9
Elevated put/call: 6.67High IV: 98%

Clinical-stage biotech: losses expected pre-commercialisation. Quality floor doesn't distinguish R&D investment from operational decay — components above tell the real story.static

Roe
0.0
Roa
0.0
Operating Margin
0.0
Net Margin
0.0
Fcf Quality
0.0
Current Ratio
5.0
Piotroski F
6.7
Moat
7.2
Rule Of 40
9.5
Gross Margin
10.0
Cash-burning: FCF -41% of revenueRule of 40: 1531 (elite)
GatesMomentum 4.5<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.5>=4.5A.R:R 2.8 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 32d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Speculative
RSI
69 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $1.84Resistance $2.68

Price Targets

$2
$3
A.Upside+45.8%
A.R:R2.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.8 < 4.0)
! Value-trap signals (3/5): Revenue declining (-33.1% YoY), Margin compression (op margin -27.2%), High leverage (D/E 7.2)

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-05 (32d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is LXRX stock a buy right now?

Sell if holding. Engine safety override at $2.25: Quality below floor (3.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.0/10 and A.R:R 2.8:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 11%; Elevated put/call ratio: 6.67; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Prior stop was $2.16. Score 5.0/10, moderate confidence.

What is the LXRX stock price target?

Take-profit target: $3.28 (+41.4% upside). Prior stop was $2.16. Stop-loss: $2.16.

What are the risks of investing in LXRX?

Quality below floor (3.8 < 4.0); Value-trap signals (3/5): Revenue declining (-33.1% YoY), Margin compression (op margin -27.2%), High leverage (D/E 7.2).

Is LXRX overvalued or undervalued?

Lexicon Pharmaceuticals, Inc. trades at a P/E of N/A (forward -11.2). TrendMatrix value score: 5.4/10. Verdict: Sell.

What do analysts say about LXRX?

11 analysts cover LXRX with a consensus score of 4.0/5. Average price target: $4.

What does Lexicon Pharmaceuticals, Inc. do?Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and...

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of pharmaceutical products for the treatment of human disease. The company develops sotagliflozin, an orally-delivered small molecule drug for the treatment of hypertrophic cardiomyopathy, and ZYNQUISTA (sotagliflozin) for the treatment of type 1 diabetes. It also commercializes INPEFA (sotagliflozin), a once-daily oral tablet to reduce the risk of cardiovascular death, hospitalization for heart failure, and urgent heart failure visit in adults with heart failure or type 2 diabetes, CKD, and other cardiovascular risk factors. In addition, the company develops LX9851, an orally-delivered small molecule drug candidate for the treatment of obesity and associated cardiometabolic disorders, and pilavapadin (LX9211), an orally-delivered small molecule drug candidate for the treatment of neuropathic pain. It has strategic collaboration and license agreements with Viatris Inc. and Bristol-Myers Squibb Company. The company was incorporated in 1995 and is headquartered in The Woodlands, Texas.

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