ADAR1 Capital Management LLC Invests $5.80 Million in Alector, Inc. $ALEC

Key Points

• ADAR1 Capital Management purchased 2.88 million Alector shares worth approximately $5.8 million, giving it a 2.58% stake. Institutional investors collectively own 85.83% of the company.
• Alector reported a quarterly loss of $0.21 per share, better than the $0.23 consensus estimate, while revenue of $3.32 million exceeded expectations of $1.71 million. The company remains deeply unprofitable, with a negative net margin of 850.13%.
• Analysts hold a mixed view, resulting in a consensus “Hold” rating and an average price target of $3.62 versus the reported share price of $2.36. Meanwhile, company insiders sold 115,760 shares worth about $227,734 over the past 90 days.

ADAR1 Capital Management LLC purchased a new position in Alector, Inc. (NASDAQ:ALEC - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 2,883,583 shares of the company's stock, valued at approximately $5,796,000. ADAR1 Capital Management LLC owned about 2.58% of Alector at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in ALEC. Bank of America Corp DE lifted its stake in Alector by 1.8% in the second quarter. Bank of America Corp DE now owns 343,909 shares of the company's stock valued at $481,000 after buying an additional 5,927 shares during the last quarter. Mackenzie Financial Corp boosted its holdings in shares of Alector by 3.4% during the third quarter. Mackenzie Financial Corp now owns 283,712 shares of the company's stock valued at $840,000 after acquiring an additional 9,270 shares during the period. Hershey Trust Co. grew its position in shares of Alector by 100.0% during the fourth quarter. Hershey Trust Co. now owns 20,572 shares of the company's stock worth $32,000 after acquiring an additional 10,286 shares during the last quarter. Jane Street Group LLC grew its position in shares of Alector by 4.7% during the first quarter. Jane Street Group LLC now owns 256,551 shares of the company's stock worth $316,000 after acquiring an additional 11,618 shares during the last quarter. Finally, Diversified Trust Co grew its position in shares of Alector by 83.6% during the first quarter. Diversified Trust Co now owns 25,895 shares of the company's stock worth $56,000 after acquiring an additional 11,793 shares during the last quarter. Institutional investors and hedge funds own 85.83% of the company's stock.

Alector Stock Performance

Shares of ALEC opened at $2.36 on Wednesday. The firm has a market capitalization of $263.52 million, a PE ratio of -2.15 and a beta of 0.60. The company has a quick ratio of 5.26, a current ratio of 5.26 and a debt-to-equity ratio of 0.80. The firm has a 50-day moving average price of $1.80 and a 200 day moving average price of $2.03. Alector, Inc. has a 52-week low of $1.09 and a 52-week high of $3.40.

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

Insider Buying and Selling

In other Alector news, CEO Arnon Rosenthal sold 87,216 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $1.97, for a total value of $171,815.52. Following the completion of the sale, the chief executive officer directly owned 2,367,206 shares in the company, valued at $4,663,395.82. This represents a 3.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Neil Lindsay Berkley sold 19,360 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $1.97, for a total value of $38,139.20. Following the transaction, the chief financial officer directly owned 379,900 shares of the company's stock, valued at approximately $748,403. The trade was a 4.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 115,760 shares of company stock valued at $227,734 over the last 90 days. 8.30% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on ALEC. Wall Street Zen upgraded shares of Alector from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Morgan Stanley restated an "underweight" rating and issued a $2.00 target price on shares of Alector in a research report on Monday, May 4th. Finally, Weiss Ratings upgraded shares of Alector from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Thursday, August 13th. Three investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Alector presently has a consensus rating of "Hold" and an average target price of $3.62.

Alector 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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