20 Large-Cap Stocks Insiders and Short Sellers Are Dumping Like Crazy

17. Exelixis, Inc. (NASDAQ:EXEL)

Short Float: 6.85%

Insider Transaction: -6.25%

Exelixis, Inc. (NASDAQ:EXEL) is a biotechnology company specializing in oncology therapeutics. Operating from its headquarters in California, the company is best known for its flagship drug, Cabometyx, used in renal cells and hepatocellular carcinoma. The company competes against Bristol Myers Squibb and Pfizer in targeted cancer treatment with this drug. Exelixis, Inc. (NASDAQ:EXEL) emphasizes internal discovery and external partnerships to accelerate pipeline development. Additionally, the company’s focus on antibody-drug conjugates and next-generation small molecules reflects a long-term value creation in precision oncology.

Exelixis, Inc. (NASDAQ:EXEL) finished the last quarter of 2024 with a 20% year-over-year growth in its U.S. cabo franchise. However, owing to increased co-pay assistance and Medicare Part D expenses, the company faces challenges in turning revenue into net income. Exelixis, Inc. (NASDAQ:EXEL) has also fallen behind in its clinical trials, which is expected to affect future earnings. Specifically, the development of zanzalintinib is compared to existing treatments like cabozantinib, thus putting competitive pressure on the company. For 2025, the company has planned to invest approximately $1 billion in R&D. However, with sequential delays in other products, skepticism prevails regarding the new R&D’s potential to generate earnings.

Around 6.85% of the company’s shares have been shorted, reflecting notable scrutiny by bearish traders. The insider transaction figure stands negative at 6.25%, indicating waning confidence among the company’s leadership circles. This negative sentiment from the market and the insiders signals a cooling outlook for Exelixis, Inc. (NASDAQ:EXEL).