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.

Alkermes plc (NASDAQ:ALKS - Get Free Report) shares gapped up before the market opened on Tuesday following a stronger than expected earnings report. 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, topping the consensus estimate of $0.42 by $0.10. Alkermes had a net margin of 23.15% and a return on equity of 24.86%. The company had revenue of $390.66 million for the quarter, compared to the consensus estimate of $343.20 million. During the same quarter in the previous year, the firm posted $1.16 EPS. The business's revenue was down 2.1% compared to the same quarter last year.

Analyst Ratings Changes

Several analysts have recently weighed in on ALKS shares. The Goldman Sachs Group started coverage on shares of Alkermes in a research report on Tuesday, July 15th. They set a "buy" rating and a $43.00 target price on the stock. Cantor Fitzgerald upgraded shares of Alkermes to a "strong-buy" rating in a research report on Tuesday, May 13th. Royal Bank Of Canada boosted their price target on shares of Alkermes from $40.00 to $42.00 and gave the company a "sector perform" rating in a research report on Wednesday. HC Wainwright restated a "neutral" rating and issued a $46.00 price target on shares of Alkermes in a research report on Monday, July 21st. Finally, UBS Group upgraded shares of Alkermes from a "neutral" rating to a "buy" rating and boosted their price target for the company from $33.00 to $42.00 in a research report on Tuesday, June 17th. Three investment analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $41.08.

Insider Activity

In other news, SVP Christian Todd Nichols sold 3,334 shares of the stock in a transaction on Tuesday, June 10th. The shares were sold at an average price of $31.09, for a total transaction of $103,654.06. Following the completion of the sale, the senior vice president owned 86,208 shares of the company's stock, valued at $2,680,206.72. This represents a 3.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 4.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Alkermes

Several large investors have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Alkermes by 0.3% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 100,032 shares of the company's stock worth $2,877,000 after acquiring an additional 311 shares in the last quarter. Diversified Trust Co boosted its holdings in Alkermes by 0.8% during the second quarter. Diversified Trust Co now owns 44,232 shares of the company's stock worth $1,265,000 after purchasing an additional 372 shares during the last quarter. Quantbot Technologies LP boosted its holdings in Alkermes by 54.5% during the first quarter. Quantbot Technologies LP now owns 1,091 shares of the company's stock worth $36,000 after purchasing an additional 385 shares during the last quarter. Louisiana State Employees Retirement System boosted its holdings in Alkermes by 0.5% during the second quarter. Louisiana State Employees Retirement System now owns 77,000 shares of the company's stock worth $2,203,000 after purchasing an additional 400 shares during the last quarter. Finally, Hohimer Wealth Management LLC boosted its holdings in Alkermes by 3.8% during the first quarter. Hohimer Wealth Management LLC now owns 12,362 shares of the company's stock worth $408,000 after purchasing an additional 450 shares during the last quarter. Institutional investors own 95.21% of the company's stock.

Alkermes Stock Up 0.2%

The company's fifty day moving average is $29.21 and its 200 day moving average is $30.77. The firm has a market cap of $4.38 billion, a price-to-earnings ratio of 12.76, a PEG ratio of 1.62 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.