Investors Purchase High Volume of Alector Call Options (NASDAQ:ALEC)

Key Points

• Alector, Inc. (NASDAQ: ALEC) experienced a significant uptick in options trading, with investors purchasing 5,623 call options, an increase of about 1,334% compared to its average volume.
• In its latest earnings report, Alector posted a loss of ($0.30) per share, which was better than the expected loss, and reported revenue of $7.87 million, surpassing analysts' expectations.
• Several analysts downgraded Alector's stock rating to "hold" with varying price targets, while the company's consensus rating stands at "Reduce" with a average target of $3.00.

Alector, Inc. (NASDAQ:ALEC - Get Free Report) saw unusually large options trading on Wednesday. Stock investors bought 5,623 call options on the company. This represents an increase of approximately 1,334% compared to the average volume of 392 call options.

Alector Price Performance

ALEC traded down $1.66 during trading on Wednesday, reaching $1.55. 16,032,352 shares of the company were exchanged, compared to its average volume of 998,393. The company's 50-day moving average is $2.82 and its two-hundred day moving average is $1.88. The company has a market cap of $157.28 million, a price-to-earnings ratio of -1.34 and a beta of 0.99. The company has a quick ratio of 3.78, a current ratio of 3.78 and a debt-to-equity ratio of 0.13. Alector has a 12-month low of $0.87 and a 12-month high of $6.14.

Alector (NASDAQ:ALEC - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported ($0.30) earnings per share for the quarter, beating the consensus estimate of ($0.45) by $0.15. Alector had a negative return on equity of 112.06% and a negative net margin of 142.10%.The firm had revenue of $7.87 million for the quarter, compared to analysts' expectations of $2.76 million. Alector has set its FY 2025 guidance at EPS. Research analysts forecast that Alector will post -1.88 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. TD Cowen lowered Alector from a "buy" rating to a "hold" rating in a research note on Wednesday. HC Wainwright set a $5.00 price target on Alector in a report on Wednesday. Cowen downgraded Alector to a "hold" rating in a report on Wednesday. BTIG Research downgraded Alector from a "buy" rating to a "neutral" rating in a research note on Wednesday. Finally, Mizuho set a $1.50 price objective on Alector and gave the company a "neutral" rating in a research note on Wednesday. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $3.00.

Insider Activity at Alector

In other news, Director Paula Hammond sold 14,000 shares of Alector stock in a transaction dated Tuesday, August 26th. The stock was sold at an average price of $2.36, for a total transaction of $33,040.00. Following the sale, the director directly owned 74,909 shares of the company's stock, valued at approximately $176,785.24. This trade represents a 15.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 9.70% of the company's stock.

Hedge Funds Weigh In On Alector

Several institutional investors and hedge funds have recently bought and sold shares of the stock. HBK Sorce Advisory LLC bought a new stake in shares of Alector during the third quarter valued at approximately $34,000. Hamilton Lane Advisors LLC purchased a new position in Alector during the third quarter valued at $43,000. FNY Investment Advisers LLC boosted its position in shares of Alector by 100.0% during the second quarter. FNY Investment Advisers LLC now owns 20,000 shares of the company's stock valued at $28,000 after buying an additional 10,000 shares during the last quarter. Prudential Financial Inc. purchased a new stake in shares of Alector during the second quarter valued at $30,000. Finally, CWM LLC boosted its position in shares of Alector by 370.7% during the first quarter. CWM LLC now owns 33,643 shares of the company's stock valued at $41,000 after buying an additional 26,495 shares during the last quarter. 85.83% of the stock is currently owned by institutional investors.

About Alector

Alector, Inc, a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, an immune activity in the brain with genetic links to multiple neurodegenerative disorders, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases.

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