Avalo Therapeutics, Inc. (NASDAQ:AVTX) Sees Large Increase in Short Interest

Key Points

• Short interest jumped 35.5% to 5,542,400 shares as of March 31, equal to about 25.1% of the shares sold short and a short-interest ratio of 6.2 days based on average daily volume.
• Analysts are broadly bullish—one Strong Buy, seven Buy and one Sell—giving a consensus rating of “Moderate Buy” and an average price target of $44.83 while the stock trades near $13.90 (market cap ~$371M).
• Insiders have been selling (46,100 shares in the last 90 days, including Rule 10b5‑1 sales by the CFO and Mittie Doyle) leaving insider ownership at 0.25%, even as institutional/hedge fund ownership stands at 87.06%.

Avalo Therapeutics, Inc. (NASDAQ:AVTX - Get Free Report) was the recipient of a significant growth in short interest in March. As of March 31st, there was short interest totaling 5,542,400 shares, a growth of 35.5% from the March 15th total of 4,089,262 shares. Approximately 25.1% of the shares of the company are sold short. Based on an average daily volume of 892,659 shares, the short-interest ratio is currently 6.2 days.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on AVTX shares. Mizuho upgraded Avalo Therapeutics to a "strong-buy" rating in a research report on Thursday, December 18th. HC Wainwright boosted their target price on shares of Avalo Therapeutics from $25.00 to $40.00 and gave the stock a "buy" rating in a research report on Wednesday, March 25th. Wall Street Zen raised shares of Avalo Therapeutics from a "strong sell" rating to a "hold" rating in a research note on Sunday, March 29th. Wolfe Research started coverage on shares of Avalo Therapeutics in a report on Thursday, April 9th. They issued an "outperform" rating and a $48.00 price target for the company. Finally, Guggenheim initiated coverage on shares of Avalo Therapeutics in a research note on Monday, February 2nd. They issued a "buy" rating and a $50.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $44.83.

Insider Transactions at Avalo Therapeutics

In other news, insider Mittie Doyle sold 3,970 shares of the stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $18.01, for a total transaction of $71,499.70. Following the completion of the transaction, the insider directly owned 3,622 shares of the company's stock, valued at approximately $65,232.22. This represents a 52.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Christopher Ryan Sullivan sold 7,980 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $17.15, for a total value of $136,857.00. Following the completion of the sale, the chief financial officer directly owned 17,338 shares of the company's stock, valued at $297,346.70. This represents a 31.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 46,100 shares of company stock valued at $764,724. 0.25% of the stock is owned by insiders.

Institutional Investors Weigh In On Avalo Therapeutics

Hedge funds and other institutional investors have recently modified their holdings of the company. Caligan Partners LP acquired a new position in shares of Avalo Therapeutics in the third quarter valued at approximately $10,592,000. Balyasny Asset Management L.P. acquired a new stake in Avalo Therapeutics during the third quarter worth approximately $10,390,000. Vanguard Group Inc. grew its stake in Avalo Therapeutics by 314.9% in the 3rd quarter. Vanguard Group Inc. now owns 692,637 shares of the company's stock worth $8,803,000 after acquiring an additional 525,696 shares during the period. Millennium Management LLC raised its holdings in Avalo Therapeutics by 380.2% in the 4th quarter. Millennium Management LLC now owns 659,979 shares of the company's stock valued at $11,985,000 after acquiring an additional 522,548 shares during the last quarter. Finally, Jennison Associates LLC acquired a new position in Avalo Therapeutics in the 4th quarter valued at $8,637,000. 87.06% of the stock is currently owned by hedge funds and other institutional investors.

Avalo Therapeutics Stock Up 4.2%

Shares of AVTX stock opened at $13.90 on Wednesday. The stock has a market cap of $371.27 million, a P/E ratio of -2.43 and a beta of 0.93. Avalo Therapeutics has a fifty-two week low of $3.39 and a fifty-two week high of $20.72. The business has a fifty day simple moving average of $15.40 and a 200-day simple moving average of $16.19.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last posted its earnings results on Monday, March 23rd. The company reported ($0.37) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.54) by $1.17. The company had revenue of $0.06 million during the quarter, compared to analysts' expectations of ($0.21) million. On average, sell-side analysts anticipate that Avalo Therapeutics will post -19.07 earnings per share for the current year.

Avalo Therapeutics Company Profile

Avalo Therapeutics is a clinical-stage biotechnology company focused on the discovery, development and commercialization of novel therapies for cardiometabolic, fibrotic and inflammatory diseases. The company's proprietary drug-design platform enables the creation of long-acting prodrugs with optimized pharmacokinetic profiles, aiming to improve efficacy, safety and patient adherence. By leveraging this technology, Avalo seeks to address key drivers of disease progression that remain underserved by existing treatments.

Its lead programs include AVTX-002, a first-in-class prodrug candidate designed to inhibit angiotensinogen for the treatment of hypertension and related cardiovascular disorders, and AVTX-006, an early-stage candidate targeting pathways implicated in fibrosis and metabolic dysfunction.

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