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

Key Points

• Wedbush lowered its AVTX price target to $20 from $22 but maintained an “outperform” rating, implying 195.81% upside from the stock’s current price.
• Analyst opinions are mixed: Avalo has a MarketBeat consensus “Moderate Buy” rating and a $36.82 average target, while some firms recently downgraded the stock to neutral or cut their targets.
• AVTX traded at $6.76, near its 12-month low of $6.53. The company reported a quarterly loss of $0.34 per share, beating the consensus estimate of a $0.59 loss.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) had its target price reduced by analysts at Wedbush from $22.00 to $20.00 in a research note issued on Friday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Wedbush's price target suggests a potential upside of 195.81% from the company's current price.

A number of other analysts have also recently issued reports on the company. Guggenheim cut Avalo Therapeutics from a "buy" rating to a "neutral" rating in a research report on Friday, October 23rd. Oppenheimer set a $16.00 target price on Avalo Therapeutics in a research report on Monday, October 26th. BTIG Research decreased their price target on shares of Avalo Therapeutics to $10.00 and set a "buy" rating on the stock in a research note on Friday, October 23rd. Cantor Fitzgerald reissued an "overweight" rating on shares of Avalo Therapeutics in a report on Wednesday, September 16th. Finally, HC Wainwright cut shares of Avalo Therapeutics from a "buy" rating to a "neutral" rating in a research note on Friday, October 23rd. Eleven analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Avalo Therapeutics has an average rating of "Moderate Buy" and a consensus price target of $36.82.

Avalo Therapeutics Trading Up 2.0%

AVTX stock traded up $0.13 during trading on Friday, reaching $6.76. 252,145 shares of the stock were exchanged, compared to its average volume of 1,308,830. Avalo Therapeutics has a twelve month low of $6.53 and a twelve month high of $24.27. The company has a market capitalization of $362.59 million, a P/E ratio of -1.54 and a beta of 0.75. The stock has a 50 day simple moving average of $13.74 and a 200-day simple moving average of $15.88.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The company reported ($0.34) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.59) by $0.25. Equities analysts predict that Avalo Therapeutics will post -2.95 EPS for the current year.

Insider Activity

In related news, CFO Christopher Sullivan sold 12,394 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $16.33, for a total transaction of $202,394.02. Following the completion of the transaction, the chief financial officer owned 39,900 shares in the company, valued at $651,567. This trade represents a 23.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 23,258 shares of company stock valued at $395,434. Corporate insiders own 4.46% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Braidwell LP acquired a new stake in shares of Avalo Therapeutics during the second quarter worth approximately $30,107,000. Seven Fleet Capital Management LP raised its stake in shares of Avalo Therapeutics by 806.0% in the first quarter. Seven Fleet Capital Management LP now owns 573,883 shares of the company's stock valued at $8,568,000 after acquiring an additional 510,540 shares during the last quarter. Squarepoint Ops LLC boosted its holdings in shares of Avalo Therapeutics by 624.9% in the 2nd quarter. Squarepoint Ops LLC now owns 589,245 shares of the company's stock worth $10,889,000 after acquiring an additional 507,960 shares in the last quarter. DV Trading LLC acquired a new position in shares of Avalo Therapeutics in the 1st quarter worth approximately $5,376,000. Finally, Affinity Asset Advisors LLC boosted its holdings in shares of Avalo Therapeutics by 27.6% in the 1st quarter. Affinity Asset Advisors LLC now owns 1,340,840 shares of the company's stock worth $20,019,000 after acquiring an additional 289,786 shares in the last quarter. 87.06% of the stock is currently owned by institutional investors and hedge funds.

About Avalo Therapeutics

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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