Allogene Therapeutics, Inc. (NASDAQ:ALLO) Sees Significant Growth in Short Interest

Key Points

• Short interest jumped 31.3% in March to 32,060,091 shares (15.2% of the float) with a days‑to‑cover ratio of 4.8, signaling elevated bearish positioning and potential for squeeze-driven volatility.
• Interim ALPHA3 results showed a 58.3% MRD clearance rate for cemacabtagene ansegedleucel versus 16.7% in observation, sparking a rally and broad media and analyst attention about the off‑the‑shelf CAR‑T’s potential.
• The company announced a proposed underwritten public offering of $175 million (plus an underwriter option up to $26.25M) and insiders have sold stock recently, which created near‑term dilution concerns and pressured the share price despite positive clinical news.

Allogene Therapeutics, Inc. (NASDAQ:ALLO - Get Free Report) saw a large increase in short interest in March. As of March 31st, there was short interest totaling 32,060,091 shares, an increase of 31.3% from the March 15th total of 24,421,757 shares. Based on an average daily trading volume, of 6,667,499 shares, the days-to-cover ratio is currently 4.8 days. Currently, 15.2% of the shares of the stock are sold short.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Truist Financial upgraded Allogene Therapeutics to a "strong-buy" rating in a research note on Wednesday, March 25th. Canaccord Genuity Group restated a "buy" rating and set a $14.00 target price on shares of Allogene Therapeutics in a research report on Friday, March 13th. UBS Group began coverage on Allogene Therapeutics in a research report on Wednesday, January 7th. They set a "buy" rating and a $8.00 target price for the company. Piper Sandler raised their target price on Allogene Therapeutics from $7.00 to $8.00 and gave the stock an "overweight" rating in a research report on Friday, March 13th. Finally, Sanford C. Bernstein raised their target price on Allogene Therapeutics from $1.60 to $3.85 and gave the stock a "market perform" rating in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $8.13.

Key Allogene Therapeutics News

Here are the key news stories impacting Allogene Therapeutics this week:

• Positive Sentiment: Interim ALPHA3 results showed a 58.3% MRD clearance rate with cemacabtagene ansegedleucel (cema-cel) versus 16.7% in observation, rapid ctDNA declines, and generally favorable safety (no CRS, ICANS, GvHD, or treatment-related SAEs reported). This clinical readout is the main driver of the early rally, signaling potential in first-line LBCL consolidation. ALPHA3 Press Release
• Positive Sentiment: Broad media and analyst attention amplified the move — outlets highlighted the potential paradigm shift for an off‑the‑shelf CAR‑T and unusual bullish options activity, indicating speculative/hedged buying interest ahead of the offering and additional readouts. FierceBiotech Coverage
• Positive Sentiment: Multiple analysts raised price targets and reiterated positive ratings (Robert W. Baird, Citizens JMP, Argus, Jefferies), boosting investor confidence and supporting upside expectations. Analyst Coverage
• Neutral Sentiment: Trading was temporarily halted early on April 13 for a pending news release; the company also scheduled a conference call/webcast to discuss the ALPHA3 interim analysis — events that typically increase intraday volatility but provide additional detail for investors. (See ALPHA3 press release above.)
• Negative Sentiment: Allogene announced a proposed underwritten public offering of $175 million of common stock (with underwriter option up to $26.25M), which raises near-term financing/dilution risk and pressured the stock after the initial rally. This financing announcement is the primary reason for the subsequent sell‑off. Offering Filing
• Negative Sentiment: Market coverage noted shares sliding on the offering announcement and listed ALLO among premarket decliners, reinforcing the short‑term negative sentiment tied to dilution and supply increase. MarketWatch: Offering Reaction

Allogene Therapeutics Stock Performance

ALLO opened at $2.28 on Wednesday. The firm's 50-day simple moving average is $2.31 and its 200-day simple moving average is $1.71. Allogene Therapeutics has a twelve month low of $0.86 and a twelve month high of $4.46. The firm has a market cap of $555.82 million, a price-to-earnings ratio of -2.62 and a beta of 0.53.

Allogene Therapeutics (NASDAQ:ALLO - Get Free Report) last posted its earnings results on Thursday, March 12th. The company reported ($0.17) earnings per share for the quarter, topping the consensus estimate of ($0.25) by $0.08. As a group, sell-side analysts anticipate that Allogene Therapeutics will post -1.28 EPS for the current fiscal year.

Insider Buying and Selling at Allogene Therapeutics

In other news, SVP Earl Martin Douglas sold 22,900 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $1.76, for a total value of $40,304.00. Following the completion of the transaction, the senior vice president owned 564,948 shares in the company, valued at approximately $994,308.48. This represents a 3.90% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO David D. Chang sold 95,269 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $1.80, for a total transaction of $171,484.20. Following the completion of the transaction, the chief executive officer owned 5,185,862 shares of the company's stock, valued at approximately $9,334,551.60. This represents a 1.80% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 278,452 shares of company stock worth $534,053. Corporate insiders own 13.20% of the company's stock.

Institutional Investors Weigh In On Allogene Therapeutics

Large investors have recently made changes to their positions in the company. Savant Capital LLC bought a new stake in shares of Allogene Therapeutics in the 3rd quarter worth about $27,000. Russell Investments Group Ltd. grew its holdings in Allogene Therapeutics by 11,159.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 21,844 shares of the company's stock worth $27,000 after acquiring an additional 21,650 shares during the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in Allogene Therapeutics during the 3rd quarter worth about $30,000. Caitong International Asset Management Co. Ltd grew its holdings in Allogene Therapeutics by 5,267.6% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 24,047 shares of the company's stock worth $30,000 after acquiring an additional 23,599 shares during the last quarter. Finally, Brighton Jones LLC grew its holdings in Allogene Therapeutics by 81.6% during the 3rd quarter. Brighton Jones LLC now owns 25,168 shares of the company's stock worth $31,000 after acquiring an additional 11,311 shares during the last quarter. Institutional investors own 83.63% of the company's stock.

About Allogene Therapeutics

Allogene Therapeutics is a clinical-stage biotechnology company focused on developing allogeneic, or “off-the-shelf,” chimeric antigen receptor T-cell (CAR T) therapies to treat a range of hematologic malignancies and solid tumors. The company leverages gene-editing technologies to generate universally compatible engineered T cells, aiming to overcome the limitations of patient-specific CAR T approaches such as manufacturing delays, variable product quality and treatment resistance.

The company's pipeline includes multiple allogeneic CAR T candidates targeting key antigens in blood cancers.

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