Arcellx (NASDAQ:ACLX) Sets New 12-Month High - Time to Buy?

Key Points

• Arcellx hit a new 52-week high of $115.13 (last $115.07) on heavy volume, but the consensus analyst view is a “Hold” with an average price target of $111.87.
• The company reported Q4 EPS of ($1.01) (in line) but revenue of $1.65M vastly missed estimates of $13.4M and showed deeply negative margins and return on equity, highlighting weak fundamentals.
• Insider Rami Elghandour sold 89,916 shares for about $10.24M (a 24.6% reduction), while institutional investors own roughly 96% of the stock, led by T. Rowe Price’s 10.56M‑share stake.

Arcellx, Inc. (NASDAQ:ACLX - Get Free Report)'s share price reached a new 52-week high on Wednesday . The stock traded as high as $115.13 and last traded at $115.07, with a volume of 14666200 shares changing hands. The stock had previously closed at $115.03.

Analyst Ratings Changes

A number of analysts have recently commented on the company. William Blair cut Arcellx from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 23rd. Weiss Ratings reissued a "sell (d-)" rating on shares of Arcellx in a research report on Monday, April 20th. Evercore set a $115.00 price target on Arcellx in a research report on Monday, February 23rd. Guggenheim cut Arcellx from a "buy" rating to a "neutral" rating and dropped their price target for the stock from $120.00 to $115.00 in a research report on Wednesday, February 25th. Finally, Robert W. Baird reissued a "neutral" rating and issued a $115.00 price target (up from $106.00) on shares of Arcellx in a research report on Monday, February 23rd. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $111.87.

Arcellx Stock Performance

The firm has a market capitalization of $6.73 billion, a P/E ratio of -28.27 and a beta of 0.25. The firm has a 50-day moving average of $111.71 and a 200-day moving average of $87.66.

Arcellx (NASDAQ:ACLX - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported ($1.01) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($1.01). The business had revenue of $1.65 million for the quarter, compared to analysts' expectations 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 forecast that Arcellx, Inc. will post -2.91 EPS for the current fiscal year.

Insider Transactions at Arcellx

In related news, insider Rami Elghandour sold 89,916 shares of the company's stock in a transaction that occurred on 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 transaction, the insider directly owned 276,051 shares of the company's stock, valued at approximately $31,447,729.92. This represents a 24.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 8.35% of the company's stock.

Institutional Investors Weigh In On Arcellx

A number of hedge funds have recently added to or reduced their stakes in ACLX. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Arcellx by 66.2% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 10,560,425 shares of the company's stock valued at $688,540,000 after buying an additional 4,208,069 shares during the period. Vestal Point Capital LP lifted its holdings in shares of Arcellx by 134.0% during the 4th quarter. Vestal Point Capital LP now owns 2,925,000 shares of the company's stock valued at $190,710,000 after buying an additional 1,675,000 shares during the period. Paradigm Biocapital Advisors LP lifted its holdings in shares of Arcellx by 23.1% during the 4th quarter. Paradigm Biocapital Advisors LP now owns 5,724,016 shares of the company's stock valued at $373,206,000 after buying an additional 1,075,000 shares during the period. State Street Corp lifted its holdings in shares of Arcellx by 31.0% during the 4th quarter. State Street Corp now owns 1,998,503 shares of the company's stock valued at $130,302,000 after buying an additional 472,476 shares during the period. Finally, Hudson Bay Capital Management LP bought a new position in shares of Arcellx during the 4th quarter valued at $26,141,000. 96.03% of the stock is currently owned by hedge funds and other institutional investors.

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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