Alkermes plc (NASDAQ:ALKS) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts remain broadly positive: Eighteen brokerages give Alkermes a consensus “Moderate Buy” rating, with 11 buys and two strong buys. The average 12-month price target is $54.56, while recent targets range as high as $63.
• Institutional ownership is substantial: Institutional investors and hedge funds own 95.21% of ALKS shares, with several major funds recently increasing their positions.
• Insiders have been selling shares: Executives sold a combined 85,150 shares worth approximately $4.24 million during the last quarter, although the reported transactions were conducted under pre-arranged Rule 10b5-1 plans.

Alkermes plc (NASDAQ:ALKS - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the eighteen brokerages that are presently covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, four have given a hold recommendation, eleven have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $54.5625.

ALKS has been the subject of several recent analyst reports. Stifel Nicolaus reaffirmed a "buy" rating and issued a $63.00 target price (up from $45.00) on shares of Alkermes in a research report on Monday, July 20th. Robert W. Baird increased their price target on shares of Alkermes from $48.00 to $58.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 29th. Weiss Ratings restated a "hold (c)" rating on shares of Alkermes in a report on Friday, August 7th. Royal Bank Of Canada boosted their price target on Alkermes from $45.00 to $56.00 and gave the stock an "outperform" rating in a research report on Tuesday, June 9th. Finally, HC Wainwright reiterated a "neutral" rating on shares of Alkermes in a research note on Monday.

Insider Buying and Selling

In other Alkermes news, SVP Christian Nichols sold 7,576 shares of the company's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $49.23, for a total transaction of $372,966.48. Following the completion of the sale, the senior vice president owned 102,193 shares of the company's stock, valued at $5,030,961.39. This represents a 6.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP David Gaffin sold 2,034 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $48.01, for a total value of $97,652.34. Following the transaction, the executive vice president owned 223,422 shares in the company, valued at approximately $10,726,490.22. This trade represents a 0.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 85,150 shares of company stock valued at $4,242,213 in the last quarter. Company insiders own 4.59% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ALKS. Baker BROS. Advisors LP grew its stake in shares of Alkermes by 23.7% in the fourth quarter. Baker BROS. Advisors LP now owns 10,012,267 shares of the company's stock worth $280,143,000 after acquiring an additional 1,920,916 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in Alkermes by 2.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,522,378 shares of the company's stock valued at $159,850,000 after purchasing an additional 109,595 shares during the period. Commodore Capital LP grew its position in Alkermes by 18.3% in the 1st quarter. Commodore Capital LP now owns 4,200,000 shares of the company's stock worth $148,512,000 after purchasing an additional 650,000 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Alkermes by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 4,080,776 shares of the company's stock worth $114,198,000 after purchasing an additional 19,382 shares during the period. Finally, First Trust Advisors LP increased its stake in Alkermes by 104.2% during the first quarter. First Trust Advisors LP now owns 2,968,785 shares of the company's stock valued at $104,976,000 after acquiring an additional 1,514,783 shares during the period. 95.21% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Alkermes

Here are the key news stories impacting Alkermes this week:

• Positive Sentiment: Positive Phase 1b ADHD results: Alkermes said ALKS 7290 produced meaningful improvements in adults with attention-deficit hyperactivity disorder, demonstrating clinical proof of concept. The drug is an investigational orexin agonist, and the data could broaden the company’s growth prospects beyond its existing commercial portfolio. Alkermes Announces Positive Phase 1b Results for ALKS 7290
• Positive Sentiment: Potentially important pipeline opportunity: Coverage characterized the ADHD data as potentially transformative for Alkermes, highlighting the company’s strategy of applying its orexin-development expertise to a large unmet-treatment market. Positive media coverage helped reinforce investor enthusiasm. Fierce Biotech article on ALKS 7290
• Positive Sentiment: Analyst endorsement: Needham reaffirmed its Buy rating and maintained a $62 price target, implying substantial upside from the reference price. The target indicates the firm views the ALKS 7290 opportunity as meaningful to Alkermes’ valuation.
• Neutral Sentiment: Early-stage development risk remains: ALKS 7290 is still in Phase 1b testing. The positive proof-of-concept findings must be confirmed in larger, later-stage studies, and the candidate still faces regulatory, clinical and commercial risks before it could contribute revenue.

Alkermes Price Performance

NASDAQ ALKS opened at $44.18 on Tuesday. Alkermes has a 1 year low of $26.99 and a 1 year high of $55.67. The stock has a market capitalization of $7.41 billion, a P/E ratio of 116.27 and a beta of 0.31. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.85 and a current ratio of 2.30. The business's fifty day moving average is $48.82 and its two-hundred day moving average is $42.04.

Alkermes Company Profile

Alkermes plc NASDAQ: ALKS is a biopharmaceutical company focused on developing and commercializing medicines for central nervous system diseases. Its research and development activities include treatments for schizophrenia, bipolar disorder, addiction and other serious neurological or psychiatric conditions, with an emphasis on long-acting injectable and extended-release formulations.

The company's marketed products include VIVITROL, an extended-release injectable form of naltrexone used to treat alcohol dependence and prevent relapse to opioid dependence after detoxification; ARISTADA, an extended-release injectable formulation of aripiprazole lauroxil for the treatment of schizophrenia in adults; and LYBALVI, an oral combination of olanzapine and samidorphan approved for schizophrenia and bipolar I disorder in adults.

Founded in Ireland in 1987, Alkermes has developed drug-delivery technologies intended to help extend dosing intervals and support medication adherence.

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