Avalo Therapeutics (NASDAQ:AVTX) Trading 6.2% Higher - Here's Why

Key Points

• Avalo Therapeutics shares rose 6.2% in Friday trading, reaching as high as $18.95 after closing at $17.88. Trading volume was lighter than usual, with 517,899 shares changing hands versus the average of 1.23 million.
• Wall Street remains broadly bullish on the stock: 13 analysts rate AVTX a Buy and one rates it a Sell, with an average price target of $45.80. Recent analyst moves were mixed, including higher targets from Mizuho and lower targets from HC Wainwright and Wedbush.
• The company beat earnings expectations slightly in its latest quarter, reporting a loss of $0.98 per share versus consensus for a $1.00 loss. Insider selling and recent institutional buying were also notable, including large purchases by several hedge funds and asset managers.

Avalo Therapeutics, Inc. (NASDAQ:AVTX - Get Free Report) traded up 6.2% on Friday . The company traded as high as $18.95 and last traded at $18.9850. 517,899 shares changed hands during mid-day trading, a decline of 58% from the average daily volume of 1,233,941 shares. The stock had previously closed at $17.88.

Analyst Upgrades and Downgrades

Several research analysts have commented on AVTX shares. Mizuho lifted their target price on Avalo Therapeutics from $39.00 to $45.00 and gave the stock an "outperform" rating in a report on Thursday, May 14th. HC Wainwright lowered their price objective on Avalo Therapeutics from $40.00 to $35.00 and set a "buy" rating for the company in a research report on Thursday, May 14th. Wedbush decreased their target price on shares of Avalo Therapeutics from $40.00 to $34.00 and set an "outperform" rating for the company in a research report on Thursday, May 14th. Citigroup restated an "outperform" rating on shares of Avalo Therapeutics in a report on Wednesday, May 6th. Finally, Weiss Ratings downgraded shares of Avalo Therapeutics from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Tuesday, June 30th. Thirteen analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Avalo Therapeutics has an average rating of "Moderate Buy" and an average price target of $45.80.

Avalo Therapeutics Trading Up 5.3%

The firm has a 50-day moving average of $16.89 and a 200 day moving average of $16.08. The company has a market cap of $989.42 million, a P/E ratio of -3.46 and a beta of 0.78.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last issued its earnings results on Wednesday, May 13th. The company reported ($0.98) earnings per share for the quarter, topping analysts' consensus estimates of ($1.00) by $0.02. On average, equities analysts predict that Avalo Therapeutics, Inc. will post -2.58 EPS for the current year.

Insider Activity at Avalo Therapeutics

In other Avalo Therapeutics news, insider Paul Varki sold 75,063 shares of Avalo Therapeutics stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $20.17, for a total value of $1,514,020.71. Following the completion of the sale, the insider directly owned 3,634 shares of the company's stock, valued at approximately $73,297.78. The trade was a 95.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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 8,458 shares of the company's stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $13.09, for a total transaction of $110,715.22. Following the transaction, the chief financial officer owned 8,880 shares in the company, valued at $116,239.20. This represents a 48.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 93,428 shares of company stock worth $1,762,722 in the last quarter. Company insiders own 4.46% of the company's stock.

Institutional Trading of Avalo Therapeutics

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Seven Fleet Capital Management LP boosted its holdings in Avalo Therapeutics by 806.0% in the first quarter. Seven Fleet Capital Management LP now owns 573,883 shares of the company's stock worth $8,568,000 after acquiring an additional 510,540 shares in the last quarter. DV Trading LLC bought a new stake in shares of Avalo Therapeutics during the first quarter valued at approximately $5,376,000. Glenmede Trust Co. NA lifted its holdings in shares of Avalo Therapeutics by 25.8% in the 1st quarter. Glenmede Trust Co. NA now owns 25,730 shares of the company's stock worth $384,000 after purchasing an additional 5,280 shares in the last quarter. Bank of America Corp DE grew its position in Avalo Therapeutics by 3.5% in the 1st quarter. Bank of America Corp DE now owns 643,000 shares of the company's stock valued at $9,600,000 after purchasing an additional 21,650 shares during the period. Finally, Exome Asset Management LLC acquired a new stake in Avalo Therapeutics in the 1st quarter valued at $2,379,000. 87.06% of the stock is owned by institutional investors.

About Avalo Therapeutics

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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