Arcellx (NASDAQ:ACLX) Hits New 1-Year High - Time to Buy?

Key Points

• 52-week high: Arcellx shares reached a new 52-week high of $115.13 (last trade $115.085) and the company has a market cap of $6.73 billion with a 50-day/200-day moving average of $108.02/$86.85.
• Analysts are mixed but cautious — Arcellx has an average rating of "Hold" with a consensus target of $111.87, despite a few upgrades (e.g., Truist to strong-buy) and several downgrades or reaffirmed holds.
• Fundamentals and insider activity raise questions: Arcellx reported EPS of ($1.01) and revenue of $1.65M (vs. $13.4M est.), faces deeply negative margins and a projected -2.91 EPS for the year, and insider Rami Elghandour recently sold 89,916 shares for about $10.24M, reducing his stake ~24.6%.

Arcellx, Inc. (NASDAQ:ACLX - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $115.13 and last traded at $115.0850, with a volume of 541374 shares trading hands. The stock had previously closed at $115.00.

Analyst Ratings Changes

Several analysts have issued reports on ACLX shares. Truist Financial raised Arcellx from a "hold" rating to a "strong-buy" rating in a research note on Friday, March 20th. Citigroup lowered Arcellx from a "buy" rating to a "neutral" rating and upped their price target for the company from $110.00 to $115.00 in a research note on Tuesday, February 24th. TD Cowen lowered Arcellx from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 2nd. Stifel Nicolaus reaffirmed a "hold" rating and issued a $115.00 price target (down from $127.00) on shares of Arcellx in a research note on Monday, February 23rd. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Arcellx in a research note on Monday. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, sixteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Arcellx currently has an average rating of "Hold" and a consensus target price of $111.87.

Arcellx Stock Performance

The company has a 50 day moving average of $108.02 and a 200-day moving average of $86.85. The stock has a market cap of $6.73 billion, a price-to-earnings ratio of -28.26 and a beta of 0.25.

Arcellx (NASDAQ:ACLX - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($1.01) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($1.01). The company had revenue of $1.65 million for the quarter, compared to analyst estimates of $13.40 million. Arcellx had a negative return on equity of 55.42% and a negative net margin of 1,027.26%. On average, research analysts anticipate that Arcellx, Inc. will post -2.91 EPS for the current year.

Insider Transactions at Arcellx

In other Arcellx news, insider Rami Elghandour sold 89,916 shares of the stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $113.92, for a total value of $10,243,230.72. Following the sale, the insider owned 276,051 shares of the company's stock, valued at $31,447,729.92. This trade represents a 24.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 8.35% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ACLX. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Arcellx by 5.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,753 shares of the company's stock valued at $1,893,000 after acquiring an additional 1,390 shares during the last quarter. Empowered Funds LLC purchased a new position in shares of Arcellx in the 1st quarter valued at about $1,768,000. Intech Investment Management LLC increased its holdings in shares of Arcellx by 27.7% in the 1st quarter. Intech Investment Management LLC now owns 21,967 shares of the company's stock valued at $1,441,000 after acquiring an additional 4,760 shares during the last quarter. Prudential Financial Inc. increased its holdings in shares of Arcellx by 49.2% in the 2nd quarter. Prudential Financial Inc. now owns 4,900 shares of the company's stock valued at $323,000 after acquiring an additional 1,615 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Arcellx in the 2nd quarter valued at about $739,000. Hedge funds and other institutional investors own 96.03% of the company's stock.

About Arcellx

Arcellx, Inc NASDAQ: ACLX is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of next-generation cell therapies for oncology and autoimmune diseases. The company's proprietary ARC-SparX™ platform is designed to enable precise control over cell-surface receptor activation and to improve the safety, efficacy and durability of adoptive cell therapies. Leveraging this technology, Arcellx engineers immune cells with modular antigen-binding domains that can be exchanged to target a variety of disease-associated markers.

The company's pipeline comprises multiple wholly owned programs in hematologic malignancies and solid tumors at various stages of preclinical and clinical development.

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