Stock of the Day

July 26, 2021

Exelixis (EXEL)

$55.46
+$0.82 (+1.5%)
Market Cap: $13.75B

About Exelixis

Exelixis, Inc., an oncology company, focuses on the discovery, development, and commercialization of new medicines for difficult-to-treat cancers in the United States. The company offers CABOMETYX tablets for the treatment of patients with advanced renal cell carcinoma who received prior anti-angiogenic therapy; and COMETRIQ capsules for the treatment of progressive and metastatic medullary thyroid cancer. Its CABOMETYX and COMETRIQ are derived from cabozantinib, an inhibitor of multiple tyrosine kinases, including MET, AXL, RET, and VEGF receptors. The company also offers COTELLIC, an inhibitor of MEK as a combination regimen to treat specific forms of advanced melanoma; and MINNEBRO, an oral non-steroidal selective blocker of the mineralocorticoid receptor for the treatment of hypertension in Japan. It develops zanzalintinib, a novel, potent, next-generation oral tyrosine kinase inhibitor (TKI) that targets VEGF receptors, MET and the TAM kinases (TYRO3, AXL and MER); and XB002, a next-generation tissue factor (TF)-targeting ADC, administered via intravenous infusion and composed of a human monoclonal antibody (mAb) against TF that is conjugated to an auristatin-based microtubulin inhibitor (MTI) payload. It has research collaborations and license agreements with Ipsen Pharma SAS; Takeda Pharmaceutical Company Ltd.; F. Hoffmann-La Roche Ltd.; Redwood Bioscience, Inc.; R.P. Scherer Technologies, LLC; Catalent Pharma Solutions, Inc.; NBE Therapeutics AG; Aurigene Discovery Technologies Limited; Iconic Therapeutics, Inc.; Invenra, Inc.; StemSynergy Therapeutics, Inc.; Genentech, Inc.; Bristol-Myers Squibb Company; and Daiichi Sankyo Company, Limited, as well as clinical development agreement with Sairopa B.V. for ADU-1805. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was incorporated in 1994 and is headquartered in Alameda, California.

Today's Trend

Exelixis, Inc. (NASDAQ: EXEL) is facing mixed signals. Strong operating performance and a favorable long-term trading trend are being offset by bearish analyst commentary and unusually heavy put-option activity, which may be weighing on investor sentiment.

  • Strong sales and earnings, along with reported institutional support, have helped Exelixis shares gain 43.5% over the past year. The company’s latest reported quarter also showed adjusted earnings of $0.91 per share, ahead of the $0.85 consensus estimate, while revenue increased 10.6% year over year. Strong Sales, Earnings Send Exelixis Shares Higher
  • Zacks Research raised its FY2026 EPS estimate to $3.18 from $3.12 and increased its Q1 2027 estimate to $0.80 from $0.79. It also lifted its Q3 2027 forecast slightly to $0.93 from $0.92, suggesting some confidence in near-term earnings execution.
  • Exelixis remains near its 52-week high, with shares recently trading around $54.45 versus a high of $57.57. Its valuation is approximately 17 times earnings, while the company continues to show strong profitability, including a reported 35.3% net margin and 42.2% return on equity.
  • Zacks Research maintains a “Strong Sell” rating and made several downward revisions: FY2027 EPS fell to $3.57 from $3.60, Q2 2027 EPS declined to $0.84 from $0.89, Q4 2026 EPS decreased to $0.81 from $0.83, and Q1 2028 EPS edged down to $0.96 from $0.97. These cuts could pressure the stock despite the modest upward revisions elsewhere.
  • Options activity was unusually bearish on August 27, with traders purchasing 10,010 put contracts—about 826% above the average daily put volume of 1,081. The surge indicates increased demand for downside protection or speculation on a decline.
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