Wall Street Zen Upgrades Alector’s Rating Amid Analyst Activity
Alector (NASDAQ: ALEC) received an upgrade from Wall Street Zen, which revised its rating from “sell” to “hold” in a report released on November 4, 2023. This change comes as a part of a broader reevaluation of the stock by various research analysts, reflecting a shift in sentiment regarding the company’s prospects.
On October 22, 2023, Mizuho established a price target of $1.50 for Alector shares while assigning a “neutral” rating. This was followed by BTIG Research, which downgraded its previous “buy” rating to “neutral” on the same day. Cowen also lowered its rating to “hold,” joining TD Cowen, which similarly shifted its stance from “buy” to “hold.” Conversely, HC Wainwright set a “buy” rating but reduced the price target from $10.00 to $5.00.
Currently, Alector has garnered one “buy” rating, seven “hold” ratings, and three “sell” ratings from analysts. According to MarketBeat, the stock holds an average rating of “Reduce” and a consensus target price of $3.00.
Recent Financial Performance
Alector’s latest quarterly earnings report, released on November 6, 2023, showed a loss of $0.34 per share, surpassing analysts’ expectations of $0.42. Despite the better-than-expected earnings, the company reported a negative return on equity of 123.02% and a negative net margin of 156.03%. Revenue for the quarter reached $3.26 million, falling short of the anticipated $3.49 million. Looking ahead, Alector has provided guidance for fiscal year 2025, with analysts predicting an average loss of $1.88 per share.
Insider Transactions and Institutional Activity
In a separate development, Alector’s Director, Paula Hammond, sold 14,000 shares of the company on August 26, 2023, at an average price of $2.36, totaling $33,040.00. After the transaction, Hammond’s holdings decreased by 15.75%, leaving her with 74,909 shares valued at approximately $176,785.24. Insider ownership currently stands at 9.70% of total shares.
Institutional investors have been active in adjusting their positions in Alector. Notably, Millennium Management LLC increased its stake by 181.2% in the third quarter, acquiring an additional 744,224 shares for a total of 1,155,027 shares, valued at $3,419,000. Similarly, Acadian Asset Management LLC expanded its holdings by 50.7%, now owning 2,170,388 shares worth $3,033,000.
Barclays PLC also made significant adjustments, increasing its holdings by 414.4% to 873,375 shares, valued at $2,585,000, while TD Asset Management Inc raised its stake by 483.3%, owning 651,738 shares valued at $912,000. Hedge funds and institutional investors collectively own approximately 85.83% of Alector’s shares.
Alector, a clinical-stage biopharmaceutical company, focuses on developing therapies for neurodegenerative diseases. Its pipeline includes AL001, currently in Phase III clinical trials targeting conditions such as frontotemporal dementia and Alzheimer’s, as well as AL101, which is in Phase I trials for Alzheimer’s and Parkinson’s diseases.
