Alnylam Pharmaceuticals (NASDAQ:ALNY) Shares Down 5% - What's Next?

Key Points

• Alnylam Pharmaceuticals shares fell 5% on Monday, trading as low as $285.72 amid lighter-than-normal volume before ending near $288.05, down from the prior close of $303.05.
• Analyst sentiment remains favorable, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $463.13. Recent moves included upgrades from Freedom Capital and Weiss Ratings, while RBC slightly trimmed its target to $445.
• Recent results were strong, as the company reported $1.99 EPS and $1.17 billion in quarterly revenue, both above expectations, with revenue up 96.4% year over year. However, insider selling and the stock’s premium valuation may be weighing on investor sentiment.

Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY - Get Free Report)'s stock price traded down 5% on Monday . The company traded as low as $285.72 and last traded at $288.0490. 376,737 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 1,240,858 shares. The stock had previously closed at $303.05.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Freedom Capital upgraded shares of Alnylam Pharmaceuticals from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 17th. Weiss Ratings upgraded shares of Alnylam Pharmaceuticals from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, May 4th. Chardan Capital reiterated a "buy" rating and issued a $425.00 price target on shares of Alnylam Pharmaceuticals in a research report on Wednesday, March 25th. Royal Bank Of Canada cut their price target on shares of Alnylam Pharmaceuticals from $450.00 to $445.00 and set an "outperform" rating on the stock in a research report on Friday, May 1st. Finally, Bank of America reiterated a "buy" rating on shares of Alnylam Pharmaceuticals in a research report on Thursday, February 12th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $463.13.

Alnylam Pharmaceuticals Stock Down 3.5%

The company has a debt-to-equity ratio of 0.94, a quick ratio of 3.06 and a current ratio of 3.13. The stock has a market capitalization of $39.04 billion, a price-to-earnings ratio of 79.85 and a beta of 0.29. The firm's fifty day simple moving average is $307.66 and its 200 day simple moving average is $348.58.

Alnylam Pharmaceuticals (NASDAQ:ALNY - Get Free Report) last announced its earnings results on Thursday, April 30th. The biopharmaceutical company reported $1.99 EPS for the quarter, topping the consensus estimate of $0.87 by $1.12. The firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.12 billion. Alnylam Pharmaceuticals had a net margin of 11.72% and a return on equity of 85.76%. The business's quarterly revenue was up 96.4% on a year-over-year basis. During the same period last year, the company posted ($0.44) EPS. On average, sell-side analysts forecast that Alnylam Pharmaceuticals, Inc. will post 7.47 earnings per share for the current year.

Insider Buying and Selling

In other news, Director David E. I. Pyott sold 3,830 shares of Alnylam Pharmaceuticals stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $299.18, for a total value of $1,145,859.40. Following the sale, the director directly owned 1,582 shares in the company, valued at $473,302.76. This trade represents a 70.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Melissa Mclaughlin sold 2,286 shares of Alnylam Pharmaceuticals stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $330.42, for a total transaction of $755,340.12. Following the completion of the sale, the insider owned 9,443 shares in the company, valued at $3,120,156.06. This trade represents a 19.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 7,740 shares of company stock worth $2,420,214 over the last quarter. 0.86% of the stock is owned by corporate insiders.

Institutional Trading of Alnylam Pharmaceuticals

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. First Horizon Corp raised its holdings in shares of Alnylam Pharmaceuticals by 20.7% in the fourth quarter. First Horizon Corp now owns 163 shares of the biopharmaceutical company's stock valued at $65,000 after purchasing an additional 28 shares during the last quarter. Yousif Capital Management LLC raised its holdings in shares of Alnylam Pharmaceuticals by 1.8% in the fourth quarter. Yousif Capital Management LLC now owns 1,676 shares of the biopharmaceutical company's stock valued at $666,000 after purchasing an additional 29 shares during the last quarter. Bessemer Group Inc. grew its stake in shares of Alnylam Pharmaceuticals by 15.6% in the third quarter. Bessemer Group Inc. now owns 222 shares of the biopharmaceutical company's stock valued at $101,000 after buying an additional 30 shares in the last quarter. Daiwa Securities Group Inc. increased its holdings in Alnylam Pharmaceuticals by 0.3% during the second quarter. Daiwa Securities Group Inc. now owns 12,941 shares of the biopharmaceutical company's stock worth $4,220,000 after buying an additional 35 shares during the last quarter. Finally, Golden State Wealth Management LLC increased its holdings in Alnylam Pharmaceuticals by 100.0% during the fourth quarter. Golden State Wealth Management LLC now owns 72 shares of the biopharmaceutical company's stock worth $29,000 after buying an additional 36 shares during the last quarter. 92.97% of the stock is currently owned by institutional investors and hedge funds.

About Alnylam Pharmaceuticals

Alnylam Pharmaceuticals, Inc NASDAQ: ALNY is a biopharmaceutical company focused on the discovery, development and commercialization of RNA interference (RNAi) therapeutics. Founded to translate the scientific discovery of RNAi into new medicines, Alnylam applies small interfering RNA (siRNA) technology to silence disease-causing genes. The company develops therapies designed to provide durable disease modification by targeting underlying genetic drivers across a range of rare and more prevalent conditions.

Alnylam has advanced multiple siRNA-based products into commercialization, initially using lipid nanoparticle delivery and more recently employing GalNAc-conjugate chemistry to enable targeted delivery to the liver with subcutaneous dosing.

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