Allogene Therapeutics Target of Unusually High Options Trading (NASDAQ:ALLO)

Key Points

• Investors bought 6,076 call options on Allogene — a 901% increase over the daily average — as NASDAQ:ALLO surged 31.5% to $3.58 on unusually heavy volume of 53,079,127 shares (vs. avg ~6.44M).
• Several firms have initiated or raised coverage (Piper Sandler, Jefferies, UBS, Truist), leaving the stock with an average analyst rating of "Moderate Buy" and an average price target of $8.30.
• Insiders have been selling: CEO David D. Chang sold 95,269 shares (avg $1.80) and insiders sold 278,452 shares in the last quarter, though insiders still own 13.20% of the company.

Allogene Therapeutics, Inc. (NASDAQ:ALLO - Get Free Report) was the recipient of some unusual options trading activity on Monday. Investors purchased 6,076 call options on the stock. This represents an increase of 901% compared to the average daily volume of 607 call options.

Allogene Therapeutics Trading Up 31.5%

NASDAQ ALLO traded up $0.86 on Monday, hitting $3.58. 53,079,127 shares of the company were exchanged, compared to its average volume of 6,437,560. The stock has a fifty day moving average of $2.27 and a 200-day moving average of $1.69. The company has a market cap of $872.24 million, a PE ratio of -4.06 and a beta of 0.53. Allogene Therapeutics has a 12 month low of $0.86 and a 12 month high of $4.46.

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Wall Street Zen raised shares of Allogene Therapeutics from a "sell" rating to a "hold" rating in a research note on Sunday, February 22nd. Piper Sandler upped their price objective on shares of Allogene Therapeutics from $7.00 to $8.00 and gave the company an "overweight" rating in a research note on Friday, March 13th. Jefferies Financial Group assumed coverage on shares of Allogene Therapeutics in a research note on Friday. They issued a "buy" rating and a $6.00 price objective on the stock. UBS Group assumed coverage on shares of Allogene Therapeutics in a research note on Wednesday, January 7th. They issued a "buy" rating and a $8.00 price objective on the stock. Finally, Truist Financial raised shares of Allogene Therapeutics to a "strong-buy" rating in a research note on Wednesday, March 25th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $8.30.

Insider Buying and Selling at Allogene Therapeutics

In other Allogene Therapeutics news, CEO David D. Chang sold 95,269 shares of the company's stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $1.80, for a total value of $171,484.20. Following the completion of the transaction, the chief executive officer directly owned 5,185,862 shares in the company, valued at approximately $9,334,551.60. This represents a 1.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Zachary Roberts sold 35,700 shares of the company's stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $1.77, for a total transaction of $63,189.00. Following the completion of the transaction, the executive vice president owned 581,166 shares of the company's stock, valued at approximately $1,028,663.82. This trade represents a 5.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 278,452 shares of company stock valued at $534,053. Insiders own 13.20% of the company's stock.

Institutional Trading of Allogene Therapeutics

Several large investors have recently made changes to their positions in the company. Mercer Global Advisors Inc. ADV grew its stake in shares of Allogene Therapeutics by 23.0% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 29,512 shares of the company's stock valued at $40,000 after buying an additional 5,514 shares during the period. CANADA LIFE ASSURANCE Co raised its holdings in Allogene Therapeutics by 27.3% during the third quarter. CANADA LIFE ASSURANCE Co now owns 39,730 shares of the company's stock worth $50,000 after buying an additional 8,519 shares during the last quarter. Brighton Jones LLC raised its holdings in Allogene Therapeutics by 81.6% during the third quarter. Brighton Jones LLC now owns 25,168 shares of the company's stock worth $31,000 after buying an additional 11,311 shares during the last quarter. Zacks Investment Management raised its holdings in Allogene Therapeutics by 2.7% during the third quarter. Zacks Investment Management now owns 526,132 shares of the company's stock worth $652,000 after buying an additional 13,831 shares during the last quarter. Finally, Vanguard Personalized Indexing Management LLC raised its holdings in Allogene Therapeutics by 19.6% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 85,720 shares of the company's stock worth $106,000 after buying an additional 14,032 shares during the last quarter. 83.63% of the stock is currently owned by institutional investors and hedge funds.

Allogene Therapeutics Company Profile

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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