Alvotech (NASDAQ:ALVO) Sees Large Increase in Short Interest

Key Points

• Alvotech experienced a significant increase in short interest, rising by 77.5% in August to a total of 1,970,000 shares.
• Research firms have revised their ratings on Alvotech, with Zacks Research downgrading it from "strong-buy" to "hold" and UBS Group lowering the target price from $16.00 to $14.00.
• In its most recent earnings report, Alvotech reported earnings of $0.14 per share, exceeding expectations and highlighting a net margin of 11.26%.

Alvotech (NASDAQ:ALVO - Get Free Report) was the recipient of a large growth in short interest in August. As of August 15th, there was short interest totaling 1,970,000 shares, a growth of 77.5% from the July 31st total of 1,110,000 shares. Based on an average trading volume of 339,800 shares, the short-interest ratio is presently 5.8 days. Approximately 1.8% of the company's stock are sold short. Approximately 1.8% of the company's stock are sold short. Based on an average trading volume of 339,800 shares, the short-interest ratio is presently 5.8 days.

Alvotech Trading Up 0.2%

NASDAQ ALVO traded up $0.02 on Thursday, hitting $8.05. 207,045 shares of the company traded hands, compared to its average volume of 471,015. The company has a market capitalization of $2.43 billion, a price-to-earnings ratio of 35.00 and a beta of 0.10. The business's 50 day moving average price is $8.59 and its 200-day moving average price is $9.39. Alvotech has a 52-week low of $7.35 and a 52-week high of $13.70.

Alvotech (NASDAQ:ALVO - Get Free Report) last released its earnings results on Wednesday, August 13th. The company reported $0.14 earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.40. The company had revenue of $116.02 million for the quarter, compared to the consensus estimate of $120.51 million. Alvotech had a negative return on equity of 38.36% and a net margin of 11.26%. As a group, sell-side analysts predict that Alvotech will post -0.07 earnings per share for the current year.

Institutional Investors Weigh In On Alvotech

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Geode Capital Management LLC raised 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 acquiring an additional 1,574 shares during the period. Wolverine Asset Management LLC raised its holdings in Alvotech by 24.7% during the first quarter. Wolverine Asset Management LLC now owns 9,286 shares of the company's stock valued at $90,000 after acquiring an additional 1,838 shares during the period. Bank of America Corp DE raised its holdings in Alvotech by 19.7% during the fourth quarter. Bank of America Corp DE now owns 16,240 shares of the company's stock valued at $215,000 after acquiring an additional 2,677 shares during the period. China Universal Asset Management Co. Ltd. raised its holdings in Alvotech by 6.9% during the first quarter. China Universal Asset Management Co. Ltd. now owns 60,472 shares of the company's stock valued at $585,000 after acquiring an additional 3,896 shares during the period. Finally, BNP Paribas Financial Markets bought a new stake in Alvotech during the fourth quarter valued at about $66,000.

Analyst Ratings Changes

Several brokerages have recently issued reports on ALVO. UBS Group decreased their target price on Alvotech from $16.00 to $14.00 and set a "buy" rating for the company in a research report on Friday, July 18th. Zacks Research downgraded Alvotech from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 18th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $14.00.

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.