Alector (NASDAQ:ALEC) Issues Quarterly Earnings Results

Key Points

• Alector reported quarterly EPS of $1.11, beating the consensus estimate of a $0.23 loss by $1.34. Revenue was $162.87 million, compared with analyst expectations of $2.19 million.
• The shares fell 8.3% during Thursday trading, reaching $2.09.
• Analyst views were mixed: the stock carried a consensus “Hold” rating and an average price target of $4.62.

Alector (NASDAQ:ALEC - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $1.11 EPS for the quarter, topping the consensus estimate of ($0.23) by $1.34, FiscalAI reports. Alector had a negative net margin of 850.13% and a negative return on equity of 531.03%. The business had revenue of $162.87 million during the quarter, compared to analyst estimates of $2.19 million.

Alector Stock Down 8.3%

ALEC traded down $0.19 during midday trading on Thursday, reaching $2.09. The company's stock had a trading volume of 1,270,117 shares, compared to its average volume of 2,418,179. Alector has a 1 year low of $1.09 and a 1 year high of $2.76. The stock's 50-day moving average is $2.06 and its 200-day moving average is $2.03. The firm has a market capitalization of $233.36 million, a price-to-earnings ratio of -1.90 and a beta of 0.61. The company has a current ratio of 5.26, a quick ratio of 5.26 and a debt-to-equity ratio of 0.80.

Wall Street Analyst Weigh In

Several brokerages have commented on ALEC. Morgan Stanley raised their price objective on shares of Alector from $2.00 to $3.00 and gave the stock an "underweight" rating in a report on Tuesday, October 6th. UBS Group restated a "neutral" rating and set a $1.50 price target on shares of Alector in a research report on Tuesday, October 6th. HC Wainwright upped their price target on Alector from $5.00 to $8.00 and gave the stock a "buy" rating in a research note on Wednesday, October 14th. Finally, Weiss Ratings upgraded Alector from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, August 13th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $4.62.

Insider Activity at Alector

In other Alector news, CFO Neil Berkley sold 29,251 shares of the business's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $2.66, for a total value of $77,807.66. Following the sale, the chief financial officer directly owned 350,649 shares of the company's stock, valued at approximately $932,726.34. The trade was a 7.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Arnon Rosenthal sold 72,606 shares of the business's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $2.66, for a total value of $193,131.96. Following the completion of the sale, the chief executive officer directly owned 2,294,600 shares in the company, valued at $6,103,636. This trade represents a 3.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 111,303 shares of company stock valued at $295,633 over the last quarter. Company insiders own 8.30% of the company's stock.

About Alector

Alector, Inc NASDAQ: ALEC is a clinical-stage biotechnology company focused on developing therapies for neurodegenerative diseases. The company's research platform, known as immuno-neurology, is designed to use the body's immune system to protect or restore the brain's ability to maintain healthy neural connections.

Alector's investigational pipeline has included antibody-based treatments for conditions such as frontotemporal dementia and Alzheimer's disease. Its programs have targeted biological pathways associated with neurodegeneration, including progranulin and TREM2.

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