Wall Street Zen Downgrades Alumis (NASDAQ:ALMS) to Sell

Key Points

• Wall Street Zen downgraded Alumis from “Hold” to “Sell,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $33.27.
• Alumis shares opened at $11.10, well below their 50-day and 200-day moving averages, after the company reported a larger-than-expected quarterly loss and revenue that fell short of estimates.
• Investor sentiment has been pressured by setbacks in Alumis’ Phase 2b lupus study, while insiders have sold nearly 20,000 shares over the past three months despite increased institutional ownership.

Alumis (NASDAQ:ALMS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday, Wall Street Zen reports.

A number of other research firms have also recently commented on ALMS. Wells Fargo & Company dropped their price objective on Alumis from $51.00 to $25.00 and set an "overweight" rating for the company in a research report on Wednesday. Citigroup restated an "overweight" rating on shares of Alumis in a report on Tuesday. Morgan Stanley decreased their price target on shares of Alumis from $39.00 to $29.00 and set an "overweight" rating on the stock in a research note on Wednesday. Chardan Capital lifted their price target on shares of Alumis from $38.00 to $40.00 and gave the stock a "buy" rating in a report on Tuesday, May 19th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Alumis in a research report on Tuesday, July 7th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $33.27.

Alumis Stock Performance

ALMS stock opened at $11.10 on Friday. The stock's 50 day moving average price is $25.33 and its 200 day moving average price is $24.61. The firm has a market cap of $1.44 billion, a P/E ratio of -2.88 and a beta of -0.81. Alumis has a 1 year low of $3.76 and a 1 year high of $31.35.

Alumis (NASDAQ:ALMS - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The company reported ($1.11) earnings per share for the quarter, missing the consensus estimate of ($0.77) by ($0.34). Alumis had a negative return on equity of 93.15% and a negative net margin of 5,933.46%.The company had revenue of $1.66 million for the quarter, compared to analysts' expectations of $3.65 million. On average, research analysts predict that Alumis will post -2.95 earnings per share for the current year.

Insider Transactions at Alumis

In related news, insider Sanam Pangali sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $28.00, for a total value of $140,000.00. Following the transaction, the insider owned 11,111 shares in the company, valued at approximately $311,108. This trade represents a 31.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Roy Hardiman sold 2,692 shares of Alumis stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $26.37, for a total transaction of $70,988.04. Following the transaction, the insider directly owned 207,746 shares in the company, valued at approximately $5,478,262.02. This trade represents a 1.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 19,953 shares of company stock valued at $534,311 in the last three months. 33.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Alumis

Several hedge funds and other institutional investors have recently made changes to their positions in ALMS. Corient Private Wealth LP increased its holdings in Alumis by 88.1% in the 2nd quarter. Corient Private Wealth LP now owns 35,144 shares of the company's stock valued at $989,000 after purchasing an additional 16,458 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Alumis during the second quarter worth about $422,000. California State Teachers Retirement System boosted its position in shares of Alumis by 2,643.4% in the second quarter. California State Teachers Retirement System now owns 2,217,939 shares of the company's stock worth $62,413,000 after buying an additional 2,137,094 shares during the period. Moore Capital Management LP boosted its position in shares of Alumis by 230.7% in the second quarter. Moore Capital Management LP now owns 136,803 shares of the company's stock worth $3,850,000 after buying an additional 95,433 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Alumis by 36.6% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 112,129 shares of the company's stock valued at $3,155,000 after buying an additional 30,055 shares in the last quarter.

Alumis News Summary

Here are the key news stories impacting Alumis this week:

• Positive Sentiment: HC Wainwright upgraded its rating on Alumis. The upgrade helped support an earlier rebound in the shares, although its effect was subsequently overshadowed by the lupus-trial news. Alumis Stock Rating Upgraded by HC Wainwright
• Positive Sentiment: Alumis will participate in several September investor conferences. These events could give management an opportunity to explain the clinical results, discuss its broader pipeline and outline its strategy for using biomarker data to identify potentially responsive lupus patients. Alumis to Participate in Upcoming September Investor Conferences
• Neutral Sentiment: Options activity was unusually high. Elevated options trading indicates increased investor positioning and volatility following the clinical announcement, but it does not establish a clear directional outlook. Alumis Target of Unusually Large Options Trading
• Negative Sentiment: Alumis’ Phase 2b lupus study missed its key endpoints. The mixed data for the company’s lead SLE treatment raised concerns about the drug’s efficacy and commercial prospects, triggering a sharp decline in the stock. Management’s potential biomarker-based development strategy may preserve a path forward, but it also adds uncertainty and could require additional clinical work. Alumis Lead Lupus Drug Missed Phase 2b Trial Endpoints
• Negative Sentiment: Guggenheim downgraded Alumis from Buy to Neutral after the trial setback. The downgrade reflects reduced confidence in the lupus program and likely contributed to continued selling pressure. Additional analyst commentary has focused on the implications of the clinical miss for valuation and the company’s pipeline. Alumis Downgraded at Guggenheim

Alumis Company Profile

Our mission is to significantly improve the lives of patients by replacing broad immunosuppression with targeted therapies. Our name, Alumis, captures our mission to enlighten immunology, and is inspired by the words "allumer"-French for illuminate-and "immunis"-Latin for the immune system. We are a clinical stage biopharmaceutical company with an initial focus on developing our two Tyrosine Kinase 2 (TYK2) inhibitors: ESK-001, a second-generation inhibitor that we are developing to maximize target inhibition and optimize tolerability, and A-005, a central nervous system (CNS) penetrant molecule.

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