Alector (NASDAQ:ALEC) Issues Quarterly Earnings Results

Key Points

• Alector reported quarterly earnings of ($0.30) per share, exceeding the expectation of ($0.45), alongside a revenue of $7.87 million compared to the projected $2.76 million.
• The company's stock experienced a significant surge of 47.3%, trading at $2.15 on Friday, with analysts raising target prices significantly following the earnings report.
• Institutional investors hold a substantial 85.83% of Alector's stock, indicating strong interest and confidence in the company's potential growth in neurodegenerative disease treatments.

Alector (NASDAQ:ALEC - Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($0.30) earnings per share for the quarter, topping the consensus estimate of ($0.45) by $0.15, Zacks reports. Alector had a negative net margin of 142.10% and a negative return on equity of 101.62%. The firm had revenue of $7.87 million for the quarter, compared to analysts' expectations of $2.76 million. Alector updated its FY 2025 guidance to EPS.

Alector Stock Up 47.3%

Shares of NASDAQ:ALEC traded up $0.69 during trading on Friday, reaching $2.15. 8,857,060 shares of the company traded hands, compared to its average volume of 487,580. The firm has a fifty day simple moving average of $1.56 and a 200 day simple moving average of $1.43. The firm has a market cap of $214.98 million, a P/E ratio of -1.85 and a beta of 0.86. Alector has a 1-year low of $0.87 and a 1-year high of $6.37. The company has a quick ratio of 3.34, a current ratio of 3.34 and a debt-to-equity ratio of 0.10.

Wall Street Analysts Forecast Growth

ALEC has been the topic of several research analyst reports. Mizuho upgraded shares of Alector from a "neutral" rating to an "outperform" rating and lifted their price objective for the stock from $2.50 to $3.50 in a research report on Monday, July 28th. HC Wainwright lifted their price objective on shares of Alector from $7.00 to $10.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $4.17.

Institutional Investors Weigh In On Alector

A number of institutional investors have recently modified their holdings of ALEC. Strs Ohio acquired a new stake in shares of Alector during the 1st quarter valued at $126,000. Jane Street Group LLC boosted its stake in shares of Alector by 4.7% during the 1st quarter. Jane Street Group LLC now owns 256,551 shares of the company's stock valued at $316,000 after buying an additional 11,618 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of Alector by 1.0% during the 2nd quarter. Geode Capital Management LLC now owns 1,982,068 shares of the company's stock valued at $2,775,000 after buying an additional 19,970 shares during the period. Institutional investors and hedge funds own 85.83% of the company's stock.

Alector Company Profile

Alector, Inc, a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, an immune activity in the brain with genetic links to multiple neurodegenerative disorders, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases.

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