Alector (NASDAQ:ALEC) Trading 7.9% Higher – Time to Buy?

Alector, Inc. (NASDAQ:ALEC)’s share price shot up 7.9% on Wednesday . The stock traded as high as $1.53 and last traded at $1.50. 719,640 shares changed hands during trading, a decline of 17% from the average daily volume of 864,624 shares. The stock had previously closed at $1.39.

Analyst Ratings Changes

ALEC has been the subject of several research analyst reports. Cantor Fitzgerald upgraded Alector from a “neutral” rating to an “overweight” rating in a research note on Wednesday, April 15th. Wall Street Zen upgraded Alector from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Alector in a report on Monday, May 4th. Finally, Morgan Stanley reissued an “underweight” rating and set a $2.00 price target on shares of Alector in a research report on Monday, May 4th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Alector currently has an average rating of “Hold” and a consensus target price of $3.62.

Alector Price Performance

The firm has a 50-day simple moving average of $1.90 and a two-hundred day simple moving average of $2.03. The company has a market capitalization of $166.54 million, a price-to-earnings ratio of -1.26 and a beta of 0.60. The company has a current ratio of 5.25, a quick ratio of 5.25 and a debt-to-equity ratio of 0.80.

Alector (NASDAQ:ALEC) last issued its earnings results on Thursday, May 7th. The company reported ($0.21) EPS for the quarter, topping analysts’ consensus estimates of ($0.29) by $0.08. The firm had revenue of $1.05 million for the quarter, compared to the consensus estimate of $9.67 million. Alector had a negative return on equity of 295.17% and a negative net margin of 680.83%. As a group, analysts predict that Alector, Inc. will post -0.86 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Arnon Rosenthal sold 87,216 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $1.97, for a total transaction of $171,815.52. Following the sale, the chief executive officer owned 2,367,206 shares in the company, valued at approximately $4,663,395.82. This trade represents a 3.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Neil Lindsay Berkley sold 19,360 shares of Alector stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $1.97, for a total transaction of $38,139.20. Following the completion of the transaction, the chief financial officer directly owned 379,900 shares of the company’s stock, valued at $748,403. The trade was a 4.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 117,580 shares of company stock worth $232,557 in the last ninety days. Corporate insiders own 8.30% of the company’s stock.

Institutional Investors Weigh In On Alector

Several hedge funds have recently modified their holdings of ALEC. Foresite Capital Management IV LLC purchased a new position in shares of Alector in the 4th quarter valued at about $6,064,000. Balyasny Asset Management L.P. purchased a new position in shares of Alector during the 4th quarter valued at approximately $5,094,000. 683 Capital Management LLC grew its position in shares of Alector by 235.0% in the fourth quarter. 683 Capital Management LLC now owns 3,350,000 shares of the company’s stock valued at $5,226,000 after purchasing an additional 2,350,000 shares during the period. Ikarian Capital LLC boosted its holdings in Alector by 174.0% in the 4th quarter. Ikarian Capital LLC now owns 2,082,606 shares of the company’s stock worth $3,249,000 after buying an additional 1,322,606 shares during the last quarter. Finally, Spruce Street Capital LP purchased a new stake in shares of Alector during the fourth quarter worth approximately $1,744,000. 85.83% of the stock is owned by hedge funds and other institutional investors.

About Alector

Alector is a clinical-stage biotechnology company headquartered in South San Francisco, California. Founded in 2013, the company is focused on discovering and developing immuno-neurology therapies that target the innate immune system to treat a range of neurodegenerative disorders. Alector’s approach aims to harness the body’s natural defense mechanisms to clear pathological proteins and restore neuronal function in conditions such as Alzheimer’s disease and frontotemporal dementia.

The company’s pipeline includes multiple product candidates in both preclinical and clinical stages, with lead programs AL001 and AL002 advancing in frontotemporal dementia and Alzheimer’s disease studies.