Alvotech (NASDAQ:ALVO) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Alvotech shares gapped up, opening at $9.09 after closing at $8.65, with a current trading price of $8.94 and a volume of 156,165 shares.
• UBS Group lowered its price target on Alvotech from $16.00 to $14.00 while maintaining a "buy" rating amid ongoing analyst evaluations.
• Large institutional investors have been actively buying Alvotech shares, with Vanguard Group increasing its stake by 31.1% during the first quarter.

Shares of Alvotech (NASDAQ:ALVO - Get Free Report) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $8.65, but opened at $9.09. Alvotech shares last traded at $8.94, with a volume of 156,165 shares changing hands.

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

Analyst Upgrades and Downgrades

Separately, UBS Group decreased their price target on shares of Alvotech from $16.00 to $14.00 and set a "buy" rating for the company in a research note on Friday, July 18th.

Institutional Investors Weigh In On Alvotech

Hedge funds and other institutional investors have recently made changes to their positions in the business. Bank of America Corp DE increased its position in shares of 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 in the last quarter. ProShare Advisors LLC purchased a new stake in Alvotech in the 4th quarter valued at about $167,000. PointState Capital LP grew 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 valued at $16,423,000 after acquiring an additional 484,826 shares during the period. Geode Capital Management LLC grew its position in shares of Alvotech by 4.0% during the 4th quarter. Geode Capital Management LLC now owns 217,587 shares of the company's stock valued at $2,879,000 after acquiring an additional 8,330 shares during the period. Finally, BNP Paribas Financial Markets bought a new position in shares of Alvotech during the 4th quarter valued at approximately $66,000.

Alvotech Trading Up 12.2%

The company's fifty day moving average is $9.05 and its 200 day moving average is $9.92. The company has a market capitalization of $2.71 billion, a P/E ratio of 39.13 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.