Alector (NASDAQ:ALEC) Stock Rating Upgraded by BTIG Research

Key Points

• BTIG Research upgraded Alector from "neutral" to a "buy" with a $6.00 price target, implying roughly a 174% upside from the prior close.
• Analyst sentiment remains mixed overall—MarketBeat shows a consensus "Hold" with an average price target of $4.17 and a breakdown of 2 Buys, 4 Holds and 2 Sells.
• In the latest quarter Alector reported EPS of ($0.34) beating estimates and revenue of $6.24M (well above the $1.78M estimate), but the company remains unprofitable with very negative margins and ROE.

Alector (NASDAQ:ALEC - Get Free Report) was upgraded by equities researchers at BTIG Research from a "neutral" rating to a "buy" rating in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a $6.00 target price on the stock. BTIG Research's price objective indicates a potential upside of 173.97% from the company's previous close.

Other research analysts have also issued reports about the company. Wall Street Zen lowered Alector from a "hold" rating to a "sell" rating in a report on Sunday, March 1st. Weiss Ratings reissued a "sell (d-)" rating on shares of Alector in a research note on Wednesday, January 21st. Finally, Morgan Stanley reissued an "underweight" rating on shares of Alector in a research note on Thursday, January 8th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Alector has a consensus rating of "Hold" and an average price target of $4.17.

Alector Price Performance

Alector stock opened at $2.19 on Tuesday. Alector has a 52-week low of $0.87 and a 52-week high of $3.40. The firm has a market capitalization of $241.69 million, a P/E ratio of -1.58 and a beta of 0.57. The company has a quick ratio of 3.83, a current ratio of 3.83 and a debt-to-equity ratio of 0.30. The firm has a fifty day moving average of $1.93 and a 200-day moving average of $2.03.

Alector (NASDAQ:ALEC - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The company reported ($0.34) earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $6.24 million for the quarter, compared to the consensus estimate of $1.78 million. As a group, analysts predict that Alector will post -1.88 EPS for the current year.

Institutional Trading of Alector

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Lexington Partners L.P. bought a new position in Alector during the 3rd quarter worth approximately $30,000. Pinegrove Venture Partners LLC bought a new position in Alector in the third quarter valued at approximately $30,000. Bronte Capital Management Pty Ltd. bought a new position in Alector during the fourth quarter worth about $30,000. Prudential Financial Inc. bought a new position in Alector during the second quarter worth $30,000. Finally, Belvedere Trading LLC bought a new stake in shares of Alector during the third quarter worth approximately $31,000. 85.83% of the stock is currently owned by institutional investors and hedge funds.

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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