Alector (NASDAQ:ALEC) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Alector beat EPS estimates, reporting ($0.21) vs. a ($0.29) consensus (beating by $0.08), but revenue massively missed at $1.05M versus $9.67M and the company posted a highly negative net margin (679.16%) and ROE (-224.96%).
• ALEC stock fell ~5.1% to $2.44 after the release; the company has a $270.9M market cap, a 52‑week range of $0.97–$3.40, institutional ownership of 85.8%, and a consensus analyst rating of "Hold" with a $3.63 price target.

Alector (NASDAQ:ALEC - Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($0.21) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.29) by $0.08, FiscalAI reports. The company had revenue of $1.05 million during the quarter, compared to the consensus estimate of $9.67 million. Alector had a negative net margin of 679.16% and a negative return on equity of 224.96%.

Alector Stock Down 5.1%

ALEC stock traded down $0.13 during mid-day trading on Thursday, reaching $2.44. 276,542 shares of the company traded hands, compared to its average volume of 469,213. The stock has a market cap of $270.91 million, a price-to-earnings ratio of -1.76 and a beta of 0.64. The company has a quick ratio of 3.83, a current ratio of 3.83 and a debt-to-equity ratio of 0.30. Alector has a fifty-two week low of $0.97 and a fifty-two week high of $3.40. The firm's 50 day moving average price is $2.31 and its 200 day moving average price is $1.87.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on ALEC shares. Wall Street Zen lowered Alector from a "hold" rating to a "sell" rating in a research report on Sunday, March 1st. BTIG Research raised Alector from a "neutral" rating to a "buy" rating and set a $6.00 target price for the company in a research report on Tuesday, March 10th. Cantor Fitzgerald raised Alector from a "neutral" rating to an "overweight" rating in a research report on Wednesday, April 15th. Morgan Stanley reaffirmed an "underweight" rating and set a $2.00 target price on shares of Alector in a research report on Monday. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Alector in a research note on Monday. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $3.63.

Hedge Funds Weigh In On Alector

A number of hedge funds have recently added to or reduced their stakes in ALEC. Jane Street Group LLC boosted its stake in shares of Alector by 4.7% in the 1st 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 during the last quarter. Strs Ohio purchased a new position in shares of Alector in the 1st quarter worth approximately $126,000. Geode Capital Management LLC boosted its stake in shares of Alector by 1.0% in the 2nd 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 during the last quarter. Prudential Financial Inc. purchased a new position in shares of Alector in the 2nd quarter worth approximately $30,000. Finally, XTX Topco Ltd boosted its stake in shares of Alector by 125.2% in 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 last quarter. Institutional investors and hedge funds own 85.83% of the company's stock.

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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