Allogene Therapeutics (NASDAQ:ALLO) Upgraded to Strong-Buy at Jefferies Financial Group

Key Points

• Jefferies upgraded Allogene Therapeutics to a "strong‑buy" and several other firms have raised ratings or price targets, leaving a MarketBeat consensus of a "Moderate Buy" with an average target of $8.13.
• Allogene reported a positive interim ALPHA3 readout—cema‑cel showed 58.3% MRD clearance vs. 16.7% in observation—which spurred analyst upgrades, renewed buying interest and elevated call‑option activity.
• The company priced a large underwritten offering of 87.5M shares at $2.00 (≈$175M), prompting dilution concerns, insider stock sales and a sharp share drop (reported down ~25.5%), weighing on near‑term stock performance.

Allogene Therapeutics (NASDAQ:ALLO - Get Free Report) was upgraded by investment analysts at Jefferies Financial Group to a "strong-buy" rating in a research note issued on Monday,Zacks.com reports.

A number of other equities analysts have also weighed in on the company. HC Wainwright increased their price target on Allogene Therapeutics from $8.00 to $12.00 and gave the company a "buy" rating in a research report on Tuesday. Wall Street Zen upgraded Allogene Therapeutics from a "sell" rating to a "hold" rating in a research report on Sunday, February 22nd. Robert W. Baird increased their price target on Allogene Therapeutics from $7.00 to $9.00 and gave the company an "outperform" rating in a research report on Tuesday. Citigroup reiterated an "outperform" rating on shares of Allogene Therapeutics in a research report on Tuesday. Finally, UBS Group initiated coverage on Allogene Therapeutics in a research report on Wednesday, January 7th. They issued a "buy" rating and a $8.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $8.13.

Allogene Therapeutics Stock Down 25.5%

Shares of ALLO stock opened at $2.28 on Monday. The stock has a 50-day simple moving average of $2.31 and a 200 day simple moving average of $1.71. Allogene Therapeutics has a fifty-two week low of $0.86 and a fifty-two week high of $4.46. The stock has a market capitalization of $555.82 million, a P/E ratio of -2.62 and a beta of 0.53.

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

Insiders Place Their Bets

In other Allogene Therapeutics news, CFO Geoffrey M. Parker sold 24,001 shares of the firm's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $1.76, for a total transaction of $42,241.76. Following the completion of the sale, the chief financial officer directly owned 1,252,795 shares in the company, valued at approximately $2,204,919.20. This trade represents a 1.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO David D. Chang sold 47,763 shares of the firm's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $2.47, for a total value of $117,974.61. Following the sale, the chief executive officer owned 5,150,599 shares of the company's stock, valued at $12,721,979.53. The trade was a 0.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 278,452 shares of company stock valued at $534,053. 13.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Allogene Therapeutics

Hedge funds have recently modified their holdings of the stock. Savant Capital LLC acquired a new position in shares of Allogene Therapeutics in the third quarter worth $27,000. Russell Investments Group Ltd. lifted its holdings in shares of Allogene Therapeutics by 11,159.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 21,844 shares of the company's stock valued at $27,000 after buying an additional 21,650 shares during the last quarter. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Allogene Therapeutics during the 3rd quarter valued at about $30,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of 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 valued at $30,000 after buying an additional 23,599 shares during the last quarter. Finally, Brighton Jones LLC lifted its holdings in shares of Allogene Therapeutics by 81.6% during the 3rd quarter. Brighton Jones LLC now owns 25,168 shares of the company's stock valued at $31,000 after buying an additional 11,311 shares during the last quarter. 83.63% of the stock is owned by institutional investors and hedge funds.

Allogene Therapeutics News Roundup

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

• Positive Sentiment: ALLO reported a positive interim futility analysis from the pivotal Phase II ALPHA3 trial — cemacabtagene ansegedleucel (cema‑cel) showed 58.3% MRD clearance vs. 16.7% in observation, rapid ctDNA reductions, and a favorable safety profile. This clinical readout is the main catalyst for the stock’s initial upside as it materially de‑risks the LBCL program and supports future regulatory / commercial value. ALPHA3 Press Release
• Positive Sentiment: Several sell‑side firms raised price targets and ratings after the data (notably Baird, Citizens/JMP and others), which can support renewed institutional interest and provide technical buying. Analyst Moves
• Positive Sentiment: Unusual options activity — elevated call buying volume was reported, indicating speculative/leveraged bullish positioning from some traders following the data release. This can amplify intraday volatility to the upside. Options Flow Report
• Neutral Sentiment: Institutional/hedge‑fund positioning appears mixed (some managers adding, others trimming). That suggests divergent views among longer‑term holders — important for medium‑term liquidity but ambiguous for immediate direction. (Quiver/filings summaries)
• Negative Sentiment: Allogene priced an underwritten public offering of 87.5M shares at $2.00 to raise ~$175M (with a 30‑day option for +13.125M shares). While proceeds will fund trials and R&D, the large size and low per‑share price create meaningful near‑term dilution pressure and triggered selling pressure after the pricing. Offering Prospectus
• Negative Sentiment: Trading was temporarily halted around the announcement and the shares moved lower in pre‑market / early trading following the offering news — typical for sizable equity raises that dilute existing holders. Relevant market commentary flagged the slide. MarketWatch Offering Reaction
• Negative Sentiment: Recent insider disclosures show only sales and no insider buys in the last six months, which investors often view as a mild negative signal on management’s near‑term conviction. (Quiver summarized insider activity)

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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