Foresite Capital Management IV LLC Makes New $6.06 Million Investment in Alector, Inc. $ALEC

Key Points

• Foresite Capital Management IV LLC disclosed a new position in Alector, buying 3.89 million shares worth about $6.06 million in the fourth quarter. The stake makes Alector one of Foresite’s larger holdings.
• Alector’s latest quarterly results showed a smaller-than-expected loss, with EPS of ($0.21) versus consensus of ($0.29), though revenue came in well below estimates at $1.05 million.
• Analyst sentiment remains mixed: Alector has a Hold consensus rating and an average price target of $3.63, while insiders including the CFO and CEO sold shares recently.

Foresite Capital Management IV LLC purchased a new stake in Alector, Inc. (NASDAQ:ALEC - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 3,887,200 shares of the company's stock, valued at approximately $6,064,000. Alector accounts for about 2.6% of Foresite Capital Management IV LLC's holdings, making the stock its 7th biggest holding. Foresite Capital Management IV LLC owned 3.56% of Alector as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the stock. Squarepoint Ops LLC bought a new stake in shares of Alector in the 4th quarter valued at $121,000. Spruce Street Capital LP bought a new position in Alector during the fourth quarter worth $1,744,000. Panagora Asset Management Inc. grew its holdings in Alector by 14.7% in the fourth quarter. Panagora Asset Management Inc. now owns 850,298 shares of the company's stock worth $1,326,000 after purchasing an additional 109,005 shares during the period. Marshall Wace LLP grew its holdings in Alector by 669.4% in the fourth quarter. Marshall Wace LLP now owns 1,166,817 shares of the company's stock worth $1,820,000 after purchasing an additional 1,015,174 shares during the period. Finally, Jacobs Levy Equity Management Inc. increased its stake in Alector by 76.5% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 2,173,202 shares of the company's stock valued at $3,390,000 after purchasing an additional 942,228 shares in the last quarter. Institutional investors and hedge funds own 85.83% of the company's stock.

Alector Price Performance

Alector stock opened at $1.48 on Tuesday. Alector, Inc. has a 52 week low of $1.09 and a 52 week high of $3.40. The company's 50 day moving average price is $2.19 and its two-hundred day moving average price is $1.96. The stock has a market cap of $164.32 million, a P/E ratio of -1.24 and a beta of 0.61. The company has a quick ratio of 5.25, a current ratio of 5.25 and a debt-to-equity ratio of 0.80.

Alector (NASDAQ:ALEC - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.21) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.29) by $0.08. The company had revenue of $1.05 million during the quarter, compared to analyst estimates of $9.67 million. Alector had a negative return on equity of 295.17% and a negative net margin of 680.83%. On average, equities analysts predict that Alector, Inc. will post -0.86 earnings per share for the current year.

Analysts Set New Price Targets

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

Insider Buying and Selling at Alector

In other news, CFO Neil Lindsay Berkley sold 19,360 shares of the firm's stock in a transaction 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 directly owned 379,900 shares of the company's stock, valued at $748,403. This trade represents a 4.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Arnon Rosenthal sold 87,216 shares of Alector stock in a transaction 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 sale, the chief executive officer owned 2,367,206 shares in the company, valued at $4,663,395.82. The trade was a 3.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 117,580 shares of company stock valued at $232,557. Insiders own 8.30% of the company's stock.

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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