Alkermes (NASDAQ:ALKS) Trading 7.2% Higher Following Analyst Upgrade

Key Points

• Alkermes shares surged by 7.2% during Wednesday's trading session, reaching a last traded price of $31.53, despite a significant drop in trading volume.
• A variety of equities analysts have rated Alkermes with an average rating of "Moderate Buy" and set an average price target of $41.31, indicating expected growth.
• The company's latest quarterly earnings report showed earnings per share (EPS) of $0.52, surpassing estimates and highlighting a 24.86% return on equity and a revenue of $390.66 million.

Alkermes plc (NASDAQ:ALKS - Get Free Report) rose 7.2% on Wednesday after Wells Fargo & Company upgraded the stock to a strong-buy rating. The company traded as high as $30.74 and last traded at $31.53. Approximately 115,370 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 1,729,336 shares. The stock had previously closed at $29.40.

ALKS has been the subject of several other reports. HC Wainwright reiterated a "neutral" rating and issued a $46.00 target price on shares of Alkermes in a report on Monday, July 21st. Royal Bank Of Canada raised their target price on shares of Alkermes from $40.00 to $42.00 and gave the stock a "sector perform" rating in a report on Wednesday, July 30th. The Goldman Sachs Group initiated coverage on shares of Alkermes in a report on Tuesday, July 15th. They issued a "buy" rating and a $43.00 target price for the company. Needham & Company LLC reiterated a "buy" rating and issued a $45.00 target price on shares of Alkermes in a report on Tuesday, July 29th. Finally, Cantor Fitzgerald upgraded shares of Alkermes to a "strong-buy" rating in a report on Tuesday, May 13th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $41.31.

Insider Activity

In related news, SVP Christian Todd Nichols sold 3,334 shares of the firm's stock in a transaction that occurred 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 transaction, the senior vice president owned 86,208 shares of the company's stock, valued at approximately $2,680,206.72. This trade 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 through the SEC website. 4.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Alkermes

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ALKS. BNP Paribas Financial Markets raised its position in Alkermes by 45.8% during the fourth quarter. BNP Paribas Financial Markets now owns 217,980 shares of the company's stock valued at $6,269,000 after acquiring an additional 68,487 shares in the last quarter. Captrust Financial Advisors raised its position in Alkermes by 9.7% during the fourth quarter. Captrust Financial Advisors now owns 18,362 shares of the company's stock valued at $528,000 after acquiring an additional 1,619 shares in the last quarter. Cetera Investment Advisers raised its position in Alkermes by 10.4% during the fourth quarter. Cetera Investment Advisers now owns 10,645 shares of the company's stock valued at $306,000 after acquiring an additional 999 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Alkermes by 0.3% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 100,032 shares of the company's stock valued at $2,877,000 after acquiring an additional 311 shares in the last quarter. Finally, Nuveen Asset Management LLC raised its position in Alkermes by 109.5% during the fourth quarter. Nuveen Asset Management LLC now owns 1,659,821 shares of the company's stock valued at $47,736,000 after acquiring an additional 867,492 shares in the last quarter. Institutional investors own 95.21% of the company's stock.

Alkermes Stock Down 5.0%

The stock has a market cap of $4.70 billion, a P/E ratio of 13.68, a price-to-earnings-growth ratio of 1.72 and a beta of 0.53. The firm's 50-day moving average is $28.35 and its two-hundred day moving average is $30.10.

Alkermes (NASDAQ:ALKS - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The company reported $0.52 EPS for the quarter, beating analysts' consensus estimates 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 analyst estimates of $343.20 million. During the same quarter last year, the firm posted $1.16 earnings per share. The company's quarterly revenue was down 2.1% compared to the same quarter last year. Alkermes has set its FY 2025 guidance at 1.030-1.210 EPS. Analysts anticipate that Alkermes plc will post 1.31 earnings per share for the current fiscal year.

Alkermes Company Profile

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.