Alector (NASDAQ:ALEC) Upgraded to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Alector from “sell” to “hold,” adding to a mixed analyst picture that now averages to a Hold rating with a $3.63 target price.
• Alector shares fell 13.9% in the session, opening at $2.10 and trading below recent highs, while the company remains a small-cap biotech with a market value of about $233 million.
• Latest earnings beat EPS expectations but missed revenue: Alector reported a smaller-than-expected loss of $0.21 per share versus estimates of $0.29, but revenue came in far below forecasts at $1.05 million.

Alector (NASDAQ:ALEC - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday.

A number of other research firms have also weighed in on ALEC. Morgan Stanley reaffirmed an "underweight" rating and set a $2.00 price objective on shares of Alector in a research report on Monday. Cantor Fitzgerald raised Alector from a "neutral" rating to an "overweight" rating in a research report on Wednesday, April 15th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Alector in a research report on Monday. Finally, BTIG Research raised Alector from a "neutral" rating to a "buy" rating and set a $6.00 price objective on the stock in a research report on Tuesday, March 10th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $3.63.

Alector Stock Down 13.9%

Alector stock opened at $2.10 on Friday. Alector has a twelve month low of $1.01 and a twelve month high of $3.40. The stock's fifty day simple moving average is $2.31 and its 200-day simple moving average is $1.87. The company has a current ratio of 3.83, a quick ratio of 3.83 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $233.16 million, a P/E ratio of -1.76 and a beta of 0.64.

Alector (NASDAQ:ALEC - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.21) earnings per share for the quarter, topping analysts' consensus estimates of ($0.29) by $0.08. Alector had a negative return on equity of 235.79% and a negative net margin of 680.83%.The business had revenue of $1.05 million for the quarter, compared to analyst estimates of $9.67 million. As a group, equities analysts expect that Alector will post -0.93 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Alector

Large investors have recently bought and sold shares of the business. Lexington Partners L.P. purchased a new position in shares of Alector during the third quarter worth about $30,000. Pinegrove Venture Partners LLC purchased a new position in shares of Alector during the third quarter worth about $30,000. Belvedere Trading LLC purchased a new position in shares of Alector during the third quarter worth about $31,000. Savant Capital LLC purchased a new position in shares of Alector during the third quarter worth about $35,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new position in shares of Alector during the third quarter worth about $37,000. Hedge funds and other institutional investors 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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