Alvotech (NASDAQ:ALVO) Sees Unusually-High Trading Volume After Strong Earnings

Key Points

• Alvotech (NASDAQ:ALVO) experienced a significant increase in trading volume, with around 379,923 shares traded, marking an 83% rise from the previous session.
• UBS Group has lowered its price target for Alvotech from $16.00 to $14.00 while maintaining a "buy" rating on the stock.
• The company's market capitalization stands at $2.42 billion, and it offers a range of biosimilar medicines targeting various health conditions, including inflammatory diseases and cancer.

Alvotech (NASDAQ:ALVO - Get Free Report) saw strong trading volume on Thursday following a better than expected earnings announcement. 379,923 shares traded hands during mid-day trading, an increase of 83% from the previous session's volume of 207,330 shares.The stock last traded at $8.09 and had previously closed at $8.96.

The company reported $0.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.26) by $0.40. Alvotech had a net margin of 11.26% and a negative return on equity of 38.36%. The business had revenue of $116.02 million for the quarter, compared to analyst estimates of $120.51 million.

Wall Street Analyst Weigh In

Separately, UBS Group decreased their price target on Alvotech from $16.00 to $14.00 and set a "buy" rating on the stock in a research note on Friday, July 18th. One analyst has rated the stock with a Buy rating, According to MarketBeat, Alvotech presently has a consensus rating of "Buy" and an average price target of $14.00.

Institutional Investors Weigh In On Alvotech

Large investors have recently added to or reduced their stakes in the business. Bank of America Corp DE raised its position in Alvotech by 19.7% during the fourth quarter. Bank of America Corp DE now owns 16,240 shares of the company's stock worth $215,000 after acquiring an additional 2,677 shares during the last quarter. ProShare Advisors LLC purchased a new position in shares of Alvotech during the 4th quarter worth approximately $167,000. PointState Capital LP raised its position in shares of Alvotech by 64.1% during the 4th quarter. PointState Capital LP now owns 1,241,379 shares of the company's stock worth $16,423,000 after purchasing an additional 484,826 shares during the last quarter. Geode Capital Management LLC lifted its stake in Alvotech by 4.0% in the 4th quarter. Geode Capital Management LLC now owns 217,587 shares of the company's stock valued at $2,879,000 after buying an additional 8,330 shares in the last quarter. Finally, BNP Paribas Financial Markets purchased a new stake in shares of Alvotech in the fourth quarter valued at $66,000.

Alvotech Trading Down 3.4%

The company's 50 day simple moving average is $8.98 and its 200-day simple moving average is $9.89. The company has a market capitalization of $2.62 billion, a price-to-earnings ratio of 20.45 and a beta of 0.11.

About Alvotech

Alvotech, through its subsidiaries, develops and manufactures biosimilar medicines for patients worldwide. It offers biosimilar products in the therapeutic areas of autoimmune, eye, and bone disorders, as well as cancer. The company's lead program is AVT02, a high concentration formulation biosimilar to Humira to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT04, a biosimilar to Stelara to treat various inflammatory conditions comprising psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT06, a biosimilar to Eylea to treat various conditions, such as age-related macular degeneration, macular edema, and diabetic retinopathy; and AVT03, a biosimilar to Xgeva and Prolia, which is in the pre-clinical phase to treat prevent bone fracture, spinal cord compression, and the need for radiation or bone surgery in patients with certain types of cancer, as well as prevent bone loss and increase bone mass.