Alvotech (NASDAQ:ALVO) Trading 7.1% Higher - Still a Buy?

Key Points

• Shares jumped 7.1% to $3.535 on Tuesday with ~347,426 shares traded (about 31% below average), but the stock remains below its 50‑day ($3.70) and 200‑day ($4.97) moving averages.
• Analyst sentiment is mixed — two Buy, two Hold and two Sell ratings — giving Alvotech an average Hold rating and an average price target of $7.60, while some firms have recently cut targets (UBS $10→$6; Barclays to $4).
• Recent results showed an EPS miss (reported −$0.37 vs. $0.13 consensus) though revenue beat ($173.2M vs. $162.2M); the company has a market cap of ~$1.06B and negative return on equity (~−11.9%).

Alvotech (NASDAQ:ALVO - Get Free Report) rose 7.1% during trading on Tuesday . The stock traded as high as $3.52 and last traded at $3.5350. Approximately 347,426 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 506,048 shares. The stock had previously closed at $3.30.

Analysts Set New Price Targets

ALVO has been the subject of several research reports. Zacks Research raised shares of Alvotech from a "strong sell" rating to a "hold" rating in a research note on Thursday, March 19th. Barclays reduced their target price on shares of Alvotech from $5.00 to $4.00 and set an "underweight" rating for the company in a report on Tuesday, March 24th. Wall Street Zen raised shares of Alvotech from a "sell" rating to a "hold" rating in a research report on Saturday, April 18th. Weiss Ratings reissued a "sell (e+)" rating on shares of Alvotech in a research report on Monday, April 20th. Finally, UBS Group reduced their price objective on shares of Alvotech from $10.00 to $6.00 and set a "buy" rating for the company in a research note on Tuesday, March 24th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Alvotech presently has an average rating of "Hold" and an average target price of $7.60.

Alvotech Stock Performance

The firm has a fifty day moving average price of $3.70 and a 200 day moving average price of $4.97. The company has a market cap of $1.06 billion, a price-to-earnings ratio of 35.20 and a beta of 0.25.

Alvotech (NASDAQ:ALVO - Get Free Report) last posted its quarterly earnings results on Wednesday, March 18th. The company reported ($0.37) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.50). The firm had revenue of $173.20 million for the quarter, compared to the consensus estimate of $162.20 million. Alvotech had a negative return on equity of 11.92% and a net margin of 4.74%. On average, analysts expect that Alvotech will post 0.01 EPS for the current fiscal year.

Hedge Funds Weigh In On Alvotech

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Invesco Ltd. increased its position in Alvotech by 57.5% during the fourth quarter. Invesco Ltd. now owns 73,360 shares of the company's stock worth $376,000 after buying an additional 26,784 shares during the last quarter. Millennium Management LLC boosted its stake in shares of Alvotech by 1,707.7% during the 4th quarter. Millennium Management LLC now owns 357,176 shares of the company's stock worth $1,832,000 after acquiring an additional 337,417 shares during the period. Stifel Financial Corp acquired a new position in shares of Alvotech during the 4th quarter worth approximately $108,000. Jane Street Group LLC bought a new stake in Alvotech in the 4th quarter valued at $474,000. Finally, Goldman Sachs Group Inc. lifted its holdings in Alvotech by 88.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 259,536 shares of the company's stock valued at $1,331,000 after purchasing an additional 122,089 shares during 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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