Alector, Inc. (NASDAQ:ALEC) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Alector has a consensus “Hold” rating from eight analysts: three buys, three holds and two sells. The average 12-month price target is $3.625, versus a recent share price of $2.15.
• The company’s latest quarterly results beat expectations, reporting a loss of $0.21 per share versus the $0.23 consensus loss and revenue of $3.32 million versus $1.71 million expected. However, Alector remains deeply unprofitable, with analysts forecasting a full-year loss of $0.86 per share.
• Insiders sold 115,760 shares worth approximately $227,734 during the last quarter, while institutional investors own 85.83% of the stock.

Shares of Alector, Inc. (NASDAQ:ALEC - Get Free Report) have earned an average recommendation of "Hold" from the eight ratings firms that are currently covering the stock, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and three have assigned a buy rating to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $3.6250.

A number of analysts have commented on ALEC shares. Cantor Fitzgerald raised shares of Alector from a "neutral" rating to an "overweight" rating in a report on Wednesday, April 15th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Alector in a research note on Friday, July 31st. Wall Street Zen raised shares of Alector from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Finally, Morgan Stanley restated an "underweight" rating and issued a $2.00 price objective on shares of Alector in a research note on Monday, May 4th.

Alector Trading Up 2.9%

Alector stock opened at $2.15 on Thursday. Alector has a 52-week low of $1.09 and a 52-week high of $3.40. The company has a market cap of $240.07 million, a P/E ratio of -1.95 and a beta of 0.60. The company has a quick ratio of 5.26, a current ratio of 5.26 and a debt-to-equity ratio of 0.80. The business has a 50-day simple moving average of $1.69 and a two-hundred day simple moving average of $2.01.

Alector (NASDAQ:ALEC - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.21) earnings per share for the quarter, topping the consensus estimate of ($0.23) by $0.02. The firm had revenue of $3.32 million for the quarter, compared to analysts' expectations of $1.71 million. Alector had a negative net margin of 850.13% and a negative return on equity of 531.03%. Analysts predict that Alector will post -0.86 EPS for the current year.

Alector News Roundup

Here are the key news stories impacting Alector this week:

• Positive Sentiment: Alector’s most recent quarterly results exceeded expectations, with a narrower-than-forecast loss and revenue of $3.32 million versus the $1.71 million consensus estimate. That performance may be helping investor sentiment, although the company remains unprofitable. Alector MarketBeat profile
• Neutral Sentiment: Reported short interest was listed at zero shares, with a zero-day short-interest ratio. Because the figures show no measurable short position and appear inconsistent with the reported trading volume, they provide little actionable information about buying or selling pressure.
• Negative Sentiment: HC Wainwright lowered its Alector EPS forecasts across the 2026–2030 period. Estimates were reduced to losses of $0.23 per share for the third quarter of 2026, $0.28 for the fourth quarter, $0.93 for fiscal 2026, $0.99 for 2027, $1.00 for 2028 and 2029, and $0.94 for 2030. The revisions indicate expectations for prolonged losses and could weigh on the stock. HC Wainwright Alector estimates
• Neutral Sentiment: The Yahoo Finance entry provides a link to Alector’s latest-news page but does not identify a new announcement or specific catalyst. Alector latest news on Yahoo Finance

Insider Buying and Selling at Alector

In other Alector news, CFO Neil Lindsay Berkley sold 19,360 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $1.97, for a total transaction of $38,139.20. Following the completion of the sale, the chief financial officer owned 379,900 shares of the company's stock, valued at approximately $748,403. The trade was a 4.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Arnon Rosenthal sold 87,216 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 $171,815.52. Following the completion of the sale, 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 position. The SEC filing for this sale provides additional information. Insiders have sold 115,760 shares of company stock worth $227,734 over the last quarter. 8.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alector

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its holdings in Alector by 1.8% in the 2nd quarter. Bank of America Corp DE now owns 343,909 shares of the company's stock worth $481,000 after buying an additional 5,927 shares during the period. Mackenzie Financial Corp raised its holdings in Alector by 3.4% during the third quarter. Mackenzie Financial Corp now owns 283,712 shares of the company's stock valued at $840,000 after acquiring an additional 9,270 shares during the period. Hershey Trust Co. raised its holdings in Alector by 100.0% during the fourth quarter. Hershey Trust Co. now owns 20,572 shares of the company's stock valued at $32,000 after acquiring an additional 10,286 shares during the period. Jane Street Group LLC raised its holdings in Alector by 4.7% during the first quarter. Jane Street Group LLC now owns 256,551 shares of the company's stock valued at $316,000 after acquiring an additional 11,618 shares during the period. Finally, Diversified Trust Co lifted its position in shares of Alector by 83.6% in the first quarter. Diversified Trust Co now owns 25,895 shares of the company's stock valued at $56,000 after acquiring an additional 11,793 shares in the last quarter. 85.83% of the stock is owned by hedge funds and other institutional investors.

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.

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