HC Wainwright Issues Negative Outlook for Alector Earnings

Key Points

• HC Wainwright lowered its earnings outlook for Alector, forecasting a Q3 2026 loss of $0.23 per share versus its prior estimate of $0.22 and projecting a full-year 2026 loss of $0.93 per share.
• Alector’s latest quarterly results beat expectations, with a loss of $0.21 per share versus the estimated $0.23 loss and revenue of $3.32 million compared with the $1.71 million consensus.
• The stock opened at $1.69 after declining 5.1%; analysts maintain a consensus “Hold” rating with an average price target of $3.62, while institutional investors own 85.83% of shares.

Alector, Inc. (NASDAQ:ALEC - Free Report) - Equities research analysts at HC Wainwright lowered their Q3 2026 earnings estimates for shares of Alector in a report issued on Friday, August 7th. HC Wainwright analyst A. Fein now anticipates that the company will post earnings per share of ($0.23) for the quarter, down from their prior estimate of ($0.22). The consensus estimate for Alector's current full-year earnings is ($0.86) per share. HC Wainwright also issued estimates for Alector's Q4 2026 earnings at ($0.28) EPS, FY2026 earnings at ($0.93) EPS, FY2027 earnings at ($0.99) EPS, FY2028 earnings at ($1.00) EPS, FY2029 earnings at ($1.00) EPS and FY2030 earnings at ($0.94) EPS.

Alector (NASDAQ:ALEC - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.21) earnings per share for the quarter, beating 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 firm had revenue of $3.32 million during the quarter, compared to analysts' expectations of $1.71 million.

Other equities research analysts have also issued reports about the stock. Morgan Stanley restated an "underweight" rating and issued a $2.00 price objective on shares of Alector in a report on Monday, May 4th. Wall Street Zen upgraded Alector from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Cantor Fitzgerald raised Alector from a "neutral" rating to an "overweight" rating in a report on Wednesday, April 15th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Alector in a research report on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $3.62.

Alector Stock Down 5.1%

ALEC stock opened at $1.69 on Tuesday. The company has a debt-to-equity ratio of 0.80, a quick ratio of 5.26 and a current ratio of 5.26. Alector has a fifty-two week low of $1.09 and a fifty-two week high of $3.40. The firm has a market capitalization of $188.71 million, a price-to-earnings ratio of -1.54 and a beta of 0.60. The company's 50 day moving average price is $1.68 and its 200 day moving average price is $2.01.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of ALEC. BlackRock Inc. acquired a new stake in shares of Alector during the second quarter worth about $15,774,000. Vanguard Group Inc. increased its position in Alector by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 6,034,659 shares of the company's stock valued at $17,863,000 after acquiring an additional 46,955 shares during the period. Foresite Capital Management IV LLC purchased a new stake in Alector during the 4th quarter valued at approximately $6,064,000. Merck & Co. Inc. purchased a new stake in Alector during the 2nd quarter valued at approximately $7,126,896,000. Finally, 683 Capital Management LLC lifted its position in Alector by 235.0% during the 4th quarter. 683 Capital Management LLC now owns 3,350,000 shares of the company's stock worth $5,226,000 after acquiring an additional 2,350,000 shares during the period. 85.83% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Alector

In other Alector news, CEO Arnon Rosenthal sold 87,216 shares of Alector 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 $171,815.52. Following the transaction, the chief executive officer owned 2,367,206 shares of the company's stock, valued at $4,663,395.82. The trade was a 3.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Neil Lindsay Berkley sold 19,360 shares of the 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 $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. The trade was a 4.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 115,760 shares of company stock worth $227,734. 8.30% of the stock is currently owned by corporate insiders.

Alector Company 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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