Wedbush Has Lowered Expectations for Avalo Therapeutics (NASDAQ:AVTX) Stock Price

Key Points

• Wedbush lowered Avalo Therapeutics’ price target to $22 from $34 but maintained an “Outperform” rating, implying roughly 195% upside from the reported $7.45 share price.
• Analyst sentiment remains mixed: Avalo has a “Moderate Buy” consensus rating and $39.10 average target, though some firms have maintained neutral ratings or issued negative revisions amid heightened competition for its AVTX-009 program.
• Avalo reported a quarterly loss of $0.83 per share, missing the $0.58 consensus estimate, while the stock traded near its one-year low and insiders sold shares during the latest quarter.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) had its price target cut by research analysts at Wedbush from $34.00 to $22.00 in a research report issued on Friday, Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Wedbush's target price indicates a potential upside of 195.30% from the stock's current price.

A number of other brokerages have also weighed in on AVTX. Leerink Partners assumed coverage on shares of Avalo Therapeutics in a report on Monday, July 6th. They issued an "outperform" rating and a $38.00 price target on the stock. HC Wainwright restated a "neutral" rating on shares of Avalo Therapeutics in a report on Friday. Wall Street Zen lowered Avalo Therapeutics from a "hold" rating to a "sell" rating in a research report on Saturday, September 12th. Guggenheim reiterated a "neutral" rating on shares of Avalo Therapeutics in a report on Friday. Finally, Weiss Ratings raised Avalo Therapeutics from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Ten research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $39.10.

Avalo Therapeutics Stock Performance

AVTX opened at $7.45 on Friday. The company's 50 day simple moving average is $16.30 and its 200 day simple moving average is $16.67. Avalo Therapeutics has a 1 year low of $6.85 and a 1 year high of $24.27. The stock has a market capitalization of $399.54 million, a PE ratio of -1.70 and a beta of 0.68.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.83) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.58) by ($0.25). As a group, sell-side analysts expect that Avalo Therapeutics will post -2.95 earnings per share for the current fiscal year.

Insider Buying and Selling at Avalo Therapeutics

In related news, CFO Christopher Sullivan sold 12,394 shares of Avalo Therapeutics stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $16.33, for a total transaction of $202,394.02. Following the transaction, the chief financial officer owned 39,900 shares in the company, valued at approximately $651,567. The trade was a 23.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 24,258 shares of company stock worth $415,434. Insiders own 4.46% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in AVTX. Squarepoint Ops LLC lifted its stake in shares of Avalo Therapeutics by 624.9% during the second quarter. Squarepoint Ops LLC now owns 589,245 shares of the company's stock worth $10,889,000 after purchasing an additional 507,960 shares in the last quarter. Seven Fleet Capital Management LP boosted its position in shares of Avalo Therapeutics by 34.3% in the second quarter. Seven Fleet Capital Management LP now owns 770,765 shares of the company's stock worth $14,244,000 after buying an additional 196,882 shares during the period. Braidwell LP purchased a new stake in shares of Avalo Therapeutics in the second quarter worth about $30,107,000. Wellington Management Group LLP acquired a new stake in shares of Avalo Therapeutics in the second quarter valued at about $1,945,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Avalo Therapeutics in the second quarter valued at about $1,897,000. 87.06% of the stock is owned by hedge funds and other institutional investors.

Avalo Therapeutics News Summary

Here are the key news stories impacting Avalo Therapeutics this week:

• Positive Sentiment: BTIG Research maintained a Buy rating while reducing its price target to $10 from $58. The revised target still implies meaningful upside from the referenced $7.45 share price. BTIG Research rating information
• Positive Sentiment: Wedbush cut its price target to $22 from $34 but retained an Outperform rating, indicating continued confidence in Avalo’s longer-term opportunity despite near-term competitive concerns. Wedbush adjusts Avalo price target
• Neutral Sentiment: Guggenheim reaffirmed its Neutral rating, while HC Wainwright separately reaffirmed Neutral in another research update. These actions suggest limited conviction following the recent decline. Guggenheim rating information HC Wainwright rating information
• Neutral Sentiment: Trading in AVTX was temporarily halted under a volatility-related LULD pause, highlighting elevated short-term trading risk but providing no fundamental update.
• Negative Sentiment: HC Wainwright downgraded Avalo from Buy to Neutral, removing a bullish analyst stance. HC Wainwright downgrades Avalo
• Negative Sentiment: Phase III results from AbbVie in hidradenitis suppurativa appear to have raised the competitive bar for Avalo’s AVTX-009 program, weighing on the stock and contributing to broader analyst price-target reductions. AbbVie phase III data subdue Avalo shares

Avalo Therapeutics Company Profile

Avalo Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on developing therapies for immune-mediated and inflammatory diseases. The company's research and development programs are intended to address conditions with significant unmet medical needs.

Avalo's lead product candidate is AVTX-009, a fully human monoclonal antibody designed to inhibit interleukin-1 beta, an inflammatory cytokine involved in several immune-related disorders. The candidate is being evaluated for potential treatment of hidradenitis suppurativa, a chronic inflammatory skin disease, and other inflammatory conditions.

The company was formerly known as Cerecor Inc and adopted the Avalo Therapeutics name in 2021.

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