Alector (NASDAQ:ALEC) Issues Quarterly Earnings Results

Alector (NASDAQ:ALEC) released its earnings results on Thursday. The company reported ($0.21) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.22) by $0.01, FiscalAI reports. Alector had a negative net margin of 680.83% and a negative return on equity of 295.17%. The firm had revenue of $3.32 million for the quarter, compared to analysts’ expectations of $1.71 million.

Alector Price Performance

Shares of ALEC traded down $0.05 during midday trading on Friday, hitting $1.78. 1,247,032 shares of the company traded hands, compared to its average volume of 803,203. Alector has a one year low of $1.09 and a one year high of $3.40. The firm has a market cap of $197.63 million, a P/E ratio of -1.50 and a beta of 0.60. The company has a debt-to-equity ratio of 0.80, a current ratio of 5.25 and a quick ratio of 5.25. The stock has a 50-day moving average of $1.69 and a 200-day moving average of $2.01.

Insider Activity at Alector

In related news, CEO Arnon Rosenthal sold 87,216 shares of the business’s stock in a transaction that occurred 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 completion of the transaction, the chief executive officer owned 2,367,206 shares of the company’s stock, valued at approximately $4,663,395.82. The trade was a 3.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Neil Lindsay Berkley sold 19,360 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $1.97, for a total value of $38,139.20. Following the completion of the transaction, the chief financial officer owned 379,900 shares in the company, valued at $748,403. This represents a 4.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 115,760 shares of company stock valued at $227,734. 8.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Jane Street Group LLC lifted its stake in Alector by 4.7% during the first quarter. Jane Street Group LLC now owns 256,551 shares of the company’s stock worth $316,000 after purchasing an additional 11,618 shares during the last quarter. Strs Ohio purchased a new position in shares of Alector during the 1st quarter valued at about $126,000. Geode Capital Management LLC lifted its position in Alector by 1.0% in the 2nd quarter. Geode Capital Management LLC now owns 1,982,068 shares of the company’s stock worth $2,775,000 after buying an additional 19,970 shares during the last quarter. Prudential Financial Inc. purchased a new stake in Alector in the second quarter worth approximately $30,000. Finally, XTX Topco Ltd boosted its stake in Alector by 125.2% in the second quarter. XTX Topco Ltd now owns 73,338 shares of the company’s stock worth $103,000 after buying an additional 40,767 shares in the last quarter. Institutional investors own 85.83% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have weighed in on ALEC. Morgan Stanley reissued an “underweight” rating and set a $2.00 price objective on shares of Alector in a report on Monday, May 4th. Wall Street Zen raised 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 research note on Friday, July 31st. Finally, Cantor Fitzgerald upgraded Alector from a “neutral” rating to an “overweight” rating in a research note on Wednesday, April 15th. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $3.62.

Alector Company Profile

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.