Alkermes (NASDAQ:ALKS) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Alkermes plc shares gapped up to $27.50 after reporting earnings of $0.52 per share, surpassing estimates of $0.42 by $0.10, but revenue declined 2.1% year-over-year.
• Recent upgrades by analysts see Alkermes' price target raised to as high as $46.00, reflecting a consensus rating of Moderate Buy with a price target averaging $40.92.
• Insider activity showed SVP Christian Todd Nichols sold shares, reducing ownership by 3.72%, while institutional investors hold 95.21% of the company’s stock.

Shares of Alkermes plc (NASDAQ:ALKS - Get Free Report) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $26.15, but opened at $27.50. Alkermes shares last traded at $26.61, with a volume of 289,463 shares changing hands.

The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.10. The company had revenue of $390.66 million during the quarter, compared to analyst estimates of $343.20 million. Alkermes had a net margin of 23.15% and a return on equity of 24.86%. The firm's revenue was down 2.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.16 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on ALKS shares. The Goldman Sachs Group began coverage on shares of Alkermes in a research report on Tuesday, July 15th. They set a "buy" rating and a $43.00 price objective for the company. Needham & Company LLC restated a "buy" rating and issued a $45.00 price target on shares of Alkermes in a report on Tuesday. Wall Street Zen lowered Alkermes from a "strong-buy" rating to a "buy" rating in a research report on Monday, May 5th. UBS Group raised Alkermes from a "neutral" rating to a "buy" rating and upped their price target for the stock from $33.00 to $42.00 in a research report on Tuesday, June 17th. Finally, Robert W. Baird lifted their price objective on shares of Alkermes from $38.00 to $41.00 and gave the company an "outperform" rating in a report on Friday, May 2nd. Three analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $41.08.

Insiders Place Their Bets

In related news, SVP Christian Todd Nichols sold 3,334 shares of the company's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $31.09, for a total value of $103,654.06. Following the transaction, the senior vice president directly owned 86,208 shares in the company, valued at approximately $2,680,206.72. This represents a 3.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 4.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Alkermes

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ALKS. Twin Tree Management LP bought a new position in Alkermes in the 1st quarter valued at about $29,000. Armstrong Advisory Group Inc. acquired a new stake in shares of Alkermes during the 2nd quarter worth approximately $29,000. Brooklyn Investment Group increased its stake in Alkermes by 1,071.1% in the first quarter. Brooklyn Investment Group now owns 1,054 shares of the company's stock valued at $35,000 after acquiring an additional 964 shares during the last quarter. Quantbot Technologies LP increased its stake in Alkermes by 54.5% in the first quarter. Quantbot Technologies LP now owns 1,091 shares of the company's stock valued at $36,000 after acquiring an additional 385 shares during the last quarter. Finally, USA Financial Formulas acquired a new position in Alkermes during the first quarter valued at approximately $49,000. 95.21% of the stock is owned by institutional investors and hedge funds.

Alkermes Stock Up 3.4%

The firm has a 50 day simple moving average of $29.34 and a two-hundred day simple moving average of $30.79. The stock has a market capitalization of $4.61 billion, a P/E ratio of 13.43, a PEG ratio of 1.65 and a beta of 0.44.

About Alkermes

Alkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in therapeutic areas in the United States, Ireland, and internationally. It has a portfolio of proprietary commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder and a pipeline of clinical and preclinical product candidates in development for neurological disorders.