Alector, Inc. (NASDAQ:ALEC) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Alector has a consensus “Hold” rating from eight analysts: three buys, three holds, and two sells. The average 12-month price target is $3.625, compared with the stock’s opening price of $2.46.
• The company beat quarterly expectations, reporting an adjusted loss of $0.21 per share versus the projected $0.23 loss, while revenue reached $3.32 million against estimates of $1.71 million. However, Alector continues to post substantial net losses and negative return on equity.
• Insiders sold 111,303 shares worth approximately $295,633 over the past 90 days, while institutional investors own a significant 85.83% of the company.

Shares of Alector, Inc. (NASDAQ:ALEC - Get Free Report) have been assigned a consensus rating of "Hold" from the eight ratings firms that are covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and three have given a buy recommendation to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $3.6250.

Separately, Weiss Ratings raised Alector from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, August 13th.

Alector Price Performance

ALEC opened at $2.46 on Monday. The company has a debt-to-equity ratio of 0.80, a quick ratio of 5.26 and a current ratio of 5.26. The company has a market cap of $274.68 million, a price-to-earnings ratio of -2.24 and a beta of 0.65. Alector has a one year low of $1.09 and a one year high of $3.40. The business's fifty day moving average is $1.91 and its two-hundred day moving average is $2.06.

Alector (NASDAQ:ALEC - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported ($0.21) earnings per share for the quarter, beating analysts' consensus estimates of ($0.23) by $0.02. Alector had a negative return on equity of 531.03% and a negative net margin of 850.13%.The business had revenue of $3.32 million during the quarter, compared to analysts' expectations of $1.71 million. Analysts anticipate that Alector will post -0.87 EPS for the current fiscal year.

Insiders Place Their Bets

In other Alector news, CFO Neil Berkley sold 29,251 shares of the company's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $2.66, for a total value of $77,807.66. Following the transaction, the chief financial officer directly owned 350,649 shares in the company, valued at approximately $932,726.34. This represents a 7.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Arnon Rosenthal sold 72,606 shares of Alector stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $2.66, for a total transaction of $193,131.96. Following the completion of the sale, the chief executive officer directly owned 2,294,600 shares of the company's stock, valued at $6,103,636. The trade was a 3.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 111,303 shares of company stock worth $295,633. Corporate insiders own 8.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ALEC. BlackRock Inc. acquired a new stake in shares of Alector in the second quarter worth approximately $15,774,000. Vanguard Group Inc. grew its holdings in Alector by 0.8% in the third quarter. Vanguard Group Inc. now owns 6,034,659 shares of the company's stock valued at $17,863,000 after purchasing an additional 46,955 shares during the period. Nantahala Capital Management LLC acquired a new position in Alector during the second quarter worth approximately $8,679,399. Foresite Capital Management IV LLC purchased a new stake in shares of Alector during the 4th quarter valued at $6,064,000. Finally, Merck & Co. Inc. acquired a new stake in shares of Alector during the 2nd quarter worth $7,126,896. Institutional investors and hedge funds own 85.83% of the company's stock.

Alector Company Profile

Alector is a clinical-stage biotechnology company headquartered in South San Francisco, California. Founded in 2013, the company is focused on discovering and developing immuno-neurology therapies that target the innate immune system to treat a range of neurodegenerative disorders. Alector's approach aims to harness the body's natural defense mechanisms to clear pathological proteins and restore neuronal function in conditions such as Alzheimer's disease and frontotemporal dementia.

The company's pipeline includes multiple product candidates in both preclinical and clinical stages, with lead programs AL001 and AL002 advancing in frontotemporal dementia and Alzheimer's disease studies.

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