Avalyn Pharma (NASDAQ:AVLN) Shares Gap Down - Time to Sell?

Key Points

• Avalyn Pharma shares opened lower, falling from a prior close of $29.73 to $28.25 before last trading at $28.37 on light volume.
• Analyst sentiment remains positive overall, with an average “Buy” rating and a $59 consensus price target; recent targets range from $52 to $80, although some analysts rate the stock “Hold.”
• The clinical-stage biotech reported a larger-than-expected quarterly loss of $21.83 per share versus the $16.38 consensus estimate, while major shareholders and a director recently increased their positions through purchases at $18 per share.

Avalyn Pharma Inc. (NASDAQ:AVLN - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $29.73, but opened at $28.25. Avalyn Pharma shares last traded at $28.37, with a volume of 1,744 shares.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Zacks Research raised shares of Avalyn Pharma to a "hold" rating in a report on Wednesday, May 27th. Morgan Stanley began coverage on shares of Avalyn Pharma in a research report on Tuesday, May 26th. They set an "overweight" rating and a $53.00 price objective for the company. Jefferies Financial Group assumed coverage on Avalyn Pharma in a report on Monday, May 25th. They set a "buy" rating and a $52.00 price objective for the company. Wall Street Zen raised Avalyn Pharma to a "hold" rating in a research report on Saturday, May 9th. Finally, Guggenheim started coverage on Avalyn Pharma in a research note on Monday, May 25th. They set a "buy" rating and a $80.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, Avalyn Pharma currently has an average rating of "Buy" and a consensus price target of $59.00.

Avalyn Pharma Stock Up 0.1%

The company has a fifty day moving average of $28.74. The firm has a market capitalization of $1.24 billion and a P/E ratio of -1.28.

Avalyn Pharma (NASDAQ:AVLN - Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The company reported ($21.83) earnings per share (EPS) for the quarter, missing the consensus estimate of ($16.38) by ($5.45).

Insider Activity at Avalyn Pharma

In other Avalyn Pharma news, major shareholder Sr One Capital Management, Llc bought 555,555 shares of the firm's stock in a transaction on Friday, May 1st. The shares were purchased at an average price of $18.00 per share, for a total transaction of $9,999,990.00. Following the completion of the transaction, the insider directly owned 2,186,562 shares in the company, valued at approximately $39,358,116. The trade was a 34.06% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Jill Carroll purchased 277,778 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The shares were bought at an average cost of $18.00 per share, for a total transaction of $5,000,004.00. Following the completion of the acquisition, the director directly owned 2,186,562 shares in the company, valued at $39,358,116. The trade was a 14.55% increase in their position. The disclosure for this purchase is available in the SEC filing.

Avalyn Pharma Company Profile

We are a clinical-stage biopharmaceutical company pioneering inhaled therapies to transform the treatment paradigm of serious, rare respiratory diseases with significant unmet needs. Our approach is designed to address the limitations of current oral therapies by delivering optimized inhaled formulations of approved oral medicines directly to the lungs to enhance efficacy and minimize systemic exposure that contributes to side effects and treatment discontinuation. Our current pipeline is focused on treating pulmonary fibrosis, a life-threatening disease with a median survival of three to five years, which is a significantly shorter prognosis than that observed for many forms of cancer.

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