Elmind Capital LP Invests $1.40 Million in Alector, Inc. $ALEC

Key Points

• Elmind Capital LP disclosed a new position in Alector, buying 900,000 shares worth about $1.4 million in the fourth quarter and ending with 0.82% of the company.
• Institutional ownership remains high, with 85.83% of Alector stock held by hedge funds and other investors. Several firms, including Vanguard and 683 Capital Management, also increased their stakes.
• Insiders have been selling shares: CEO Arnon Rosenthal and CFO Neil Lindsay Berkley both sold stock on June 2, while Alector’s latest quarterly results beat EPS estimates but missed revenue expectations.

Elmind Capital LP acquired a new position in Alector, Inc. (NASDAQ:ALEC - Free Report) during the fourth quarter, according to its most recent 13F filing with the SEC. The firm acquired 900,000 shares of the company's stock, valued at approximately $1,404,000. Elmind Capital LP owned 0.82% of Alector at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of the stock. Vanguard Group Inc. raised its holdings in shares of Alector by 0.8% during the 3rd quarter. Vanguard Group Inc. now owns 6,034,659 shares of the company's stock valued at $17,863,000 after buying an additional 46,955 shares during the period. Foresite Capital Management IV LLC purchased a new stake in shares of Alector during the 4th quarter valued at about $6,064,000. 683 Capital Management LLC raised its holdings in shares of Alector by 235.0% during the 4th quarter. 683 Capital Management LLC now owns 3,350,000 shares of the company's stock valued at $5,226,000 after buying an additional 2,350,000 shares during the period. Balyasny Asset Management L.P. purchased a new stake in shares of Alector during the 4th quarter valued at about $5,094,000. Finally, Jacobs Levy Equity Management Inc. raised its holdings in shares of Alector by 76.5% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 2,173,202 shares of the company's stock valued at $3,390,000 after buying an additional 942,228 shares during the period. 85.83% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Alector news, CFO Neil Lindsay Berkley sold 19,360 shares of the firm'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 transaction of $38,139.20. Following the completion of the sale, the chief financial officer owned 379,900 shares in the company, valued at $748,403. This trade represents a 4.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Arnon Rosenthal sold 87,216 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $1.97, for a total value of $171,815.52. Following the sale, the chief executive officer owned 2,367,206 shares of the company's stock, valued at approximately $4,663,395.82. This trade represents a 3.55% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 117,580 shares of company stock valued at $232,557. 8.30% of the stock is owned by insiders.

Alector Price Performance

Shares of NASDAQ ALEC opened at $1.56 on Thursday. Alector, Inc. has a fifty-two week low of $1.09 and a fifty-two week high of $3.40. The business has a 50 day moving average price of $2.16 and a two-hundred day moving average price of $1.96. The company has a quick ratio of 5.25, a current ratio of 5.25 and a debt-to-equity ratio of 0.80. The firm has a market cap of $173.21 million, a PE ratio of -1.31 and a beta of 0.61.

Alector (NASDAQ:ALEC - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.21) earnings per share for the quarter, beating analysts' consensus estimates of ($0.29) by $0.08. Alector had a negative return on equity of 295.17% and a negative net margin of 680.83%.The firm had revenue of $1.05 million during the quarter, compared to analyst estimates of $9.67 million. Sell-side analysts expect that Alector, Inc. will post -0.86 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Wall Street Zen upgraded Alector from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Cantor Fitzgerald upgraded Alector from a "neutral" rating to an "overweight" rating in a report on Wednesday, April 15th. Morgan Stanley reiterated an "underweight" rating and set a $2.00 target price on shares of Alector in a report on Monday, May 4th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Alector in a report on Monday, May 4th. Finally, BTIG Research upgraded Alector from a "neutral" rating to a "buy" rating and set a $6.00 target price on the stock in a report on Tuesday, March 10th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $3.63.

About Alector

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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