Alector (NASDAQ:ALEC) Releases Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Alector beat quarterly expectations: The biotechnology company reported a loss of $0.21 per share, $0.02 better than analysts’ forecast, while revenue of $3.32 million exceeded the $1.43 million consensus estimate.
• Shares rose amid heavy trading: Alector stock gained $0.34 to $1.83, with trading volume far above average. Despite strong liquidity, the company remained deeply unprofitable, posting a negative net margin of 680.83%.
• Analyst sentiment remains mixed: Alector has an average “Hold” rating and a $3.62 price target, while recent recommendations ranged from “Sell” and “Underweight” to “Overweight.” Company insiders sold 115,760 shares over the past 90 days.

Alector (NASDAQ:ALEC - Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($0.21) earnings per share for the quarter, beating analysts' consensus estimates of ($0.23) by $0.02, FiscalAI reports. The business had revenue of $3.32 million for the quarter, compared to the consensus estimate of $1.43 million. Alector had a negative net margin of 680.83% and a negative return on equity of 295.17%.

Alector Stock Performance

Alector stock traded up $0.34 during midday trading on Thursday, reaching $1.83. 5,702,966 shares of the company's stock were exchanged, compared to its average volume of 484,769. The stock's 50-day simple moving average is $1.69 and its 200 day simple moving average is $2.01. The firm has a market cap of $203.18 million, a price-to-earnings ratio of -1.54 and a beta of 0.60. The company has a debt-to-equity ratio of 0.80, a quick ratio of 5.25 and a current ratio of 5.25. Alector has a 52 week low of $1.09 and a 52 week high of $3.40.

Analyst Ratings Changes

Several research firms have weighed in on ALEC. Morgan Stanley reiterated an "underweight" rating and set a $2.00 target price on shares of Alector in a report on Monday, May 4th. Wall Street Zen upgraded shares of Alector from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Alector in a report on Friday, July 31st. Finally, Cantor Fitzgerald upgraded shares of Alector from a "neutral" rating to an "overweight" rating in a report on Wednesday, April 15th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Alector currently has an average rating of "Hold" and an average price target of $3.62.

Insider Buying and Selling

In other news, CEO Arnon Rosenthal sold 87,216 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $1.97, for a total transaction of $171,815.52. Following the completion of the sale, the chief executive officer owned 2,367,206 shares in the company, valued at $4,663,395.82. The trade was a 3.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Neil Lindsay Berkley sold 19,360 shares of the company's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $1.97, for a total value of $38,139.20. Following the completion of the transaction, the chief financial officer directly owned 379,900 shares in the company, valued at approximately $748,403. This represents a 4.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 115,760 shares of company stock valued at $227,734. Insiders own 8.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Jane Street Group LLC grew its position in Alector by 4.7% during the first quarter. Jane Street Group LLC now owns 256,551 shares of the company's stock worth $316,000 after buying an additional 11,618 shares in the last quarter. Strs Ohio bought a new stake in shares of Alector during the 1st quarter valued at approximately $126,000. Geode Capital Management LLC increased its holdings in shares of Alector by 1.0% during the second quarter. Geode Capital Management LLC now owns 1,982,068 shares of the company's stock worth $2,775,000 after buying an additional 19,970 shares in the last quarter. Prudential Financial Inc. acquired a new stake in shares of Alector during the second quarter valued at about $30,000. Finally, XTX Topco Ltd boosted its position in Alector by 125.2% during the 2nd quarter. XTX Topco Ltd now owns 73,338 shares of the company's stock worth $103,000 after buying an additional 40,767 shares during the period. Institutional investors and hedge funds 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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