Alector, Inc. (NASDAQ:ALEC) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analysts consensus: Eight analysts give Alector a consensus rating of "Hold" (2 sell, 4 hold, 2 buy) with an average 12‑month price target of about $4.17.
• Quarterly results: Alector reported Q4 EPS of ($0.34) versus estimates of ($0.39) and revenue of $6.24M vs. $1.78M estimates, but remains unprofitable with a negative net margin (~679%) and negative ROE (~225%), and analysts forecast -1.88 EPS for the year.
• Institutional interest: Institutions own 85.83% of the stock, and several firms (including Foresite, Balyasny, 683 Capital, Ikarian and Spruce Street) established or increased stakes in the fourth quarter.

Alector, Inc. (NASDAQ:ALEC - Get Free Report) has received a consensus rating of "Hold" from the eight ratings firms that are currently covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating on the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $4.1667.

ALEC has been the topic of a number of research reports. Wall Street Zen lowered shares of Alector from a "hold" rating to a "sell" rating in a research report on Sunday, March 1st. Morgan Stanley reissued an "underweight" rating on shares of Alector in a report on Thursday, January 8th. BTIG Research raised shares of Alector from a "neutral" rating to a "buy" rating and set a $6.00 price target on the stock in a report on Tuesday, March 10th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Alector in a report on Wednesday, January 21st.

Alector Trading Down 0.8%

Shares of ALEC stock opened at $2.40 on Friday. Alector has a 1 year low of $0.88 and a 1 year high of $3.40. The firm's fifty day simple moving average is $2.13 and its 200 day simple moving average is $1.96. The firm has a market capitalization of $264.86 million, a P/E ratio of -1.73 and a beta of 0.58. The company has a current ratio of 3.83, a quick ratio of 3.83 and a debt-to-equity ratio of 0.30.

Alector (NASDAQ:ALEC - Get Free Report) last announced its earnings results on Wednesday, February 25th. The company reported ($0.34) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.39) by $0.05. Alector had a negative net margin of 679.16% and a negative return on equity of 224.96%. The business had revenue of $6.24 million for the quarter, compared to analyst estimates of $1.78 million. As a group, sell-side analysts predict that Alector will post -1.88 EPS for the current year.

Institutional Investors Weigh In On Alector

Several institutional investors and hedge funds have recently bought and sold shares of ALEC. Foresite Capital Management IV LLC bought a new stake in Alector in the 4th quarter valued at $6,064,000. Balyasny Asset Management L.P. bought a new stake in Alector in the 4th quarter valued at $5,094,000. 683 Capital Management LLC increased its holdings in Alector by 235.0% in the 4th quarter. 683 Capital Management LLC now owns 3,350,000 shares of the company's stock valued at $5,226,000 after buying an additional 2,350,000 shares during the period. Ikarian Capital LLC increased 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 valued at $3,249,000 after buying an additional 1,322,606 shares during the period. Finally, Spruce Street Capital LP bought a new stake in Alector in the 4th quarter valued at $1,744,000. Institutional investors own 85.83% of the company's stock.

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.

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