Lexeo Therapeutics LXEO falls 6.37% as safety concerns and insider selling pressure shares

In pre-market trading on December 18, 2025, shares of Lexeo Therapeutics (NASDAQ:LXEO) fell 6.37%, signaling investor caution ahead of key developments.

Despite Raymond James initiating coverage with a "Strong Buy" rating and a $25 price target—implying a 175% upside from current levels—the stock declined. Analysts highlighted Lexeo’s lead asset LX2006, an AAV gene therapy for Friedreich’s Ataxia, as a catalyst, citing positive Phase 1/2 trial data and FDA feedback. However, recent safety concerns, including a reported Grade 3 ventricular tachycardia event in a high-dose patient, prompted H.C. Wainwright to lower its price target to $13 while maintaining a Buy rating.

Investor sentiment was further pressured by insider selling. Executive officers and key personnel sold nearly 40,000 shares collectively in the past six months. Meanwhile, the company raised $153.8 million through a public offering, underscoring its capital-raising efforts ahead of pivotal trial data expected in mid-2027. Cantor Fitzgerald and Oppenheimer remain bullish on Lexeo’s PKP2-ACM program but acknowledged the stock’s volatility, with a beta of 1.78.

The decline reflects a balance between long-term therapeutic potential and near-term risks, as the market weighs regulatory hurdles and competitive dynamics in the gene therapy space.

Lexeo's stock price has shown significant volatility over the past year due to the mixed signals from clinical data and insider activities. While the company continues to advance its pipeline, the market's uncertainty is reflected in the stock's wide price swings. Cantor Fitzgerald and Oppenheimer remain optimistic about the long-term outlook, citing the innovative nature of Lexeo's gene therapy candidates and the potential to capture market share in the rare disease segment. However, they caution that the path to commercialization is not without its challenges.