Aldeyra Therapeutics (NASDAQ:ALDX) Stock Price Passes Below 50-Day Moving Average - Should You Sell?

Key Points

• Aldeyra Therapeutics' stock price has fallen below its 50-day moving average of $5.42, trading as low as $5.36.
• Analysts have mixed ratings on Aldeyra, with a consensus rating of "Hold" and an average price target of $9.50.
• Insider Stephen Machatha sold over 22,000 shares, reducing their ownership by 9.05%, suggesting potential concerns about the company's outlook.

Aldeyra Therapeutics, Inc. (NASDAQ:ALDX - Get Free Report)'s share price crossed below its 50 day moving average during trading on Friday . The stock has a 50 day moving average of $5.42 and traded as low as $5.36. Aldeyra Therapeutics shares last traded at $5.39, with a volume of 980,965 shares.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on ALDX shares. Weiss Ratings reissued a "sell (e+)" rating on shares of Aldeyra Therapeutics in a research report on Wednesday. Wall Street Zen raised Aldeyra Therapeutics from a "sell" rating to a "hold" rating in a research report on Saturday, June 21st. Finally, Zacks Research raised Aldeyra Therapeutics to a "hold" rating in a research report on Friday, August 8th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Aldeyra Therapeutics currently has a consensus rating of "Hold" and an average price target of $9.50.

Aldeyra Therapeutics Stock Down 4.9%

The firm has a fifty day moving average price of $5.42 and a 200-day moving average price of $4.03. The firm has a market cap of $322.86 million, a price-to-earnings ratio of -6.34 and a beta of 0.83.

Aldeyra Therapeutics (NASDAQ:ALDX - Get Free Report) last issued its earnings results on Thursday, August 7th. The biotechnology company reported ($0.16) earnings per share for the quarter, beating analysts' consensus estimates of ($0.21) by $0.05. Equities research analysts anticipate that Aldeyra Therapeutics, Inc. will post -0.92 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Stephen Machatha sold 22,073 shares of Aldeyra Therapeutics stock in a transaction on Monday, August 11th. The stock was sold at an average price of $5.15, for a total value of $113,675.95. Following the transaction, the insider owned 221,799 shares in the company, valued at approximately $1,142,264.85. This trade represents a 9.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 9.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Wealth Enhancement Advisory Services LLC acquired a new position in Aldeyra Therapeutics in the first quarter valued at $63,000. Invesco Ltd. boosted its holdings in Aldeyra Therapeutics by 1,575.7% in the first quarter. Invesco Ltd. now owns 501,137 shares of the biotechnology company's stock valued at $2,882,000 after acquiring an additional 471,231 shares during the last quarter. Wellington Management Group LLP acquired a new position in shares of Aldeyra Therapeutics during the first quarter worth about $675,000. Strs Ohio acquired a new position in shares of Aldeyra Therapeutics during the first quarter worth about $440,000. Finally, Pallas Capital Advisors LLC acquired a new position in shares of Aldeyra Therapeutics during the second quarter worth about $68,000. Institutional investors and hedge funds own 59.71% of the company's stock.

Aldeyra Therapeutics Company Profile

Aldeyra Therapeutics is a clinical-stage biotechnology company focused on the development of novel therapies with the potential to improve the lives of patients with immune-mediated diseases. Two of the company's lead compounds, reproxalap and ADX-629, target reactive aldehyde species (RASP), which are elevated in ocular and systemic inflammatory disease, leading to elevated levels of cytokine release via activation of a broad array of inflammatory factors, including NF-κB, inflammasomes, and Scavenger Receptor A.

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