Alvotech (NASDAQ:ALVO) Shares Up 5.3% - Time to Buy?

Key Points

• Shares rose 5.3% to about $3.28 on Monday (314,378 shares traded, down ~41% from average), giving Alvotech a market cap near $992 million.
• Analyst sentiment is mixed with a consensus "Hold" and an average target of $7.60; individual price targets range from $4.00 to $10.00 and ratings split roughly into two Buys, two Holds and two Sells.
• Operationally, Alvotech reported a quarterly EPS miss (‑$0.37 vs. $0.13 estimate) but revenue beat ($173.2M vs. $162.2M); the company focuses on developing biosimilars to major biologics like Humira, Avastin and Stelara.

Alvotech (NASDAQ:ALVO - Get Free Report) shot up 5.3% on Monday . The company traded as high as $3.27 and last traded at $3.2750. 314,378 shares traded hands during trading, a decline of 41% from the average session volume of 535,852 shares. The stock had previously closed at $3.11.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Morgan Stanley set a $10.00 price objective on Alvotech in a report on Wednesday, December 3rd. UBS Group reduced their price target on Alvotech from $10.00 to $6.00 and set a "buy" rating for the company in a research report on Tuesday, March 24th. Wall Street Zen raised Alvotech from a "sell" rating to a "hold" rating in a report on Saturday. Zacks Research upgraded Alvotech from a "strong sell" rating to a "hold" rating in a research report on Thursday, March 19th. Finally, Barclays dropped their price objective on shares of Alvotech from $5.00 to $4.00 and set an "underweight" rating on the stock in a research note on Tuesday, March 24th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $7.60.

Alvotech Trading Up 5.8%

The stock has a market capitalization of $991.87 million, a price-to-earnings ratio of 32.90 and a beta of 0.16. The stock has a 50-day moving average price of $4.35 and a 200 day moving average price of $5.67.

Alvotech (NASDAQ:ALVO - Get Free Report) last released its quarterly earnings results on Wednesday, March 18th. The company reported ($0.37) earnings per share for the quarter, missing analysts' consensus estimates of $0.13 by ($0.50). The business had revenue of $173.20 million during the quarter, compared to analyst estimates of $162.20 million. Alvotech had a negative return on equity of 12.84% and a net margin of 4.74%. Equities research analysts anticipate that Alvotech will post -0.07 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. increased its holdings in Alvotech by 40.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 36,444 shares of the company's stock worth $352,000 after acquiring an additional 10,573 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Alvotech by 0.7% during the second quarter. Geode Capital Management LLC now owns 230,291 shares of the company's stock valued at $2,100,000 after purchasing an additional 1,574 shares in the last quarter. Legal & General Group Plc grew its position in shares of Alvotech by 17.0% in the second quarter. Legal & General Group Plc now owns 657,742 shares of the company's stock valued at $6,028,000 after purchasing an additional 95,331 shares during the period. Norges Bank acquired a new stake in shares of Alvotech in the second quarter valued at about $1,656,000. Finally, Invesco Ltd. increased its stake in shares of Alvotech by 37.3% during the second quarter. Invesco Ltd. now owns 32,398 shares of the company's stock worth $295,000 after purchasing an additional 8,794 shares in the last quarter.

About Alvotech

Alvotech NASDAQ: ALVO is a global biopharmaceutical company specializing in the development, manufacturing and commercialization of biosimilar medicines. The company focuses on creating high‐quality, cost‐effective alternatives to established biologic therapies in areas such as immunology, oncology and other specialty care fields. By leveraging in‐house research and a vertically integrated manufacturing platform, Alvotech aims to bring approved biosimilars to market more rapidly and with greater cost efficiency than many traditional biosimilar developers.

Since its founding in 2013, Alvotech has built a diversified pipeline of monoclonal antibody biosimilars, targeting blockbuster reference products including adalimumab (originally branded Humira), bevacizumab (Avastin) and ustekinumab (Stelara).

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