Avalyn Pharma (NASDAQ:AVLN) Shares Up 5.3% - Here's Why

Key Points

• Avalyn Pharma shares rose 5.3% in midday trading, reaching as high as $27.76 before last trading at $27.04. Volume was well below normal, with 63,435 shares changing hands versus an average of 400,026.
• Several analysts recently initiated or adjusted coverage, and the stock currently carries a Buy consensus with an average price target of $59. Notable targets ranged from $51 to $80.
• The company reported a wider-than-expected quarterly loss, posting EPS of ($21.83) versus the consensus estimate of ($16.38). Despite the miss, insider buying was notable, including large purchases by Director Jill Carroll and major shareholder SR One Capital Management.

Shares of Avalyn Pharma Inc. (NASDAQ:AVLN - Get Free Report) traded up 5.3% during mid-day trading on Friday . The company traded as high as $27.76 and last traded at $27.04. 63,435 shares changed hands during trading, a decline of 84% from the average session volume of 400,026 shares. The stock had previously closed at $25.68.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Evercore assumed coverage on Avalyn Pharma in a report on Tuesday, May 26th. They issued an "outperform" rating and a $51.00 price target on the stock. Guggenheim began coverage on Avalyn Pharma in a research report on Monday, May 25th. They issued a "buy" rating and a $80.00 target price on the stock. Zacks Research upgraded Avalyn Pharma to a "hold" rating in a research note on Wednesday, May 27th. Jefferies Financial Group assumed coverage on Avalyn Pharma in a research report on Monday, May 25th. They set a "buy" rating and a $52.00 price target for the company. Finally, Morgan Stanley began coverage on shares of Avalyn Pharma in a research note on Tuesday, May 26th. They set an "overweight" rating and a $53.00 price target for the company. Two analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average price target of $59.00.

Avalyn Pharma Price Performance

The firm has a market cap of $1.23 billion and a P/E ratio of -1.27. The firm has a 50 day moving average price of $28.86.

Avalyn Pharma (NASDAQ:AVLN - Get Free Report) last released its 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 Buying and Selling

In other news, Director Jill Carroll bought 277,778 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were acquired 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 owned 2,186,562 shares in the company, valued at approximately $39,358,116. This represents a 14.55% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, major shareholder Sr One Capital Management, Llc purchased 555,555 shares of the company's stock in a transaction on Friday, May 1st. The shares were purchased at an average cost 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 of the company's stock, valued at approximately $39,358,116. This represents a 34.06% increase in their position. The disclosure for this purchase is available in the SEC filing.

About Avalyn Pharma

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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