Alkermes (NASDAQ:ALKS) Stock Price Down 5.6% - Should You Sell?

Key Points

• Alkermes shares fell 5.6% to about $44.10, with trading volume 57% below the average. The stock trades at a high P/E ratio of 116.11, while its 50-day moving average is $49.15.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $54.56, despite ratings ranging from underperform to strong buy.
• Insiders have sold 85,150 shares worth roughly $4.24 million over the past three months, while hedge funds and other institutions own a substantial 95.21% of the company.

Shares of Alkermes plc (NASDAQ:ALKS - Get Free Report) traded down 5.6% on Friday . The company traded as low as $44.20 and last traded at $44.10. Approximately 903,780 shares traded hands during mid-day trading, a decline of 57% from the average daily volume of 2,092,249 shares. The stock had previously closed at $46.71.

Wall Street Analysts Forecast Growth

ALKS has been the topic of a number of research analyst reports. Bank of America restated an "underperform" rating on shares of Alkermes in a report on Monday, June 29th. HC Wainwright reissued a "neutral" rating on shares of Alkermes in a research note on Thursday, July 30th. TD Cowen raised their price target on shares of Alkermes from $42.00 to $50.00 and gave the stock a "buy" rating in a report on Monday, June 22nd. JPMorgan Chase & Co. lifted their price target on shares of Alkermes from $60.00 to $61.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Finally, Robert W. Baird upped their price objective on shares of Alkermes from $48.00 to $58.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $54.56.

Alkermes Trading Down 5.5%

The business has a fifty day moving average of $49.15 and a 200-day moving average of $41.84. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.85 and a current ratio of 2.30. The company has a market capitalization of $7.40 billion, a P/E ratio of 116.11 and a beta of 0.31.

Insider Buying and Selling at Alkermes

In other news, EVP David Gaffin sold 2,034 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $48.01, for a total value of $97,652.34. Following the completion of the sale, the executive vice president directly owned 223,422 shares of the company's stock, valued at $10,726,490.22. This represents a 0.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christian Nichols sold 7,576 shares of Alkermes stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $49.23, for a total value of $372,966.48. Following the transaction, the senior vice president directly owned 102,193 shares in the company, valued at approximately $5,030,961.39. The trade was a 6.90% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 85,150 shares of company stock valued at $4,242,213 over the last three months. Corporate insiders own 4.59% of the company's stock.

Hedge Funds Weigh In On Alkermes

A number of hedge funds have recently bought and sold shares of ALKS. Norges Bank bought a new position in Alkermes in the 4th quarter worth approximately $54,442,000. Baker BROS. Advisors LP lifted its position in shares of Alkermes by 23.7% during the fourth quarter. Baker BROS. Advisors LP now owns 10,012,267 shares of the company's stock worth $280,143,000 after acquiring an additional 1,920,916 shares in the last quarter. First Trust Advisors LP boosted its holdings in shares of Alkermes by 104.2% in the first quarter. First Trust Advisors LP now owns 2,968,785 shares of the company's stock worth $104,976,000 after acquiring an additional 1,514,783 shares during the period. Commodore Capital LP grew its position in shares of Alkermes by 18.3% in the first quarter. Commodore Capital LP now owns 4,200,000 shares of the company's stock valued at $148,512,000 after purchasing an additional 650,000 shares in the last quarter. Finally, Affinity Asset Advisors LLC raised its stake in shares of Alkermes by 35.0% during the 1st quarter. Affinity Asset Advisors LLC now owns 1,350,000 shares of the company's stock valued at $47,736,000 after purchasing an additional 350,000 shares during the period. 95.21% of the stock is owned by hedge funds and other institutional investors.

Alkermes Company Profile

Alkermes plc NASDAQ: ALKS is a biopharmaceutical company focused on developing and commercializing medicines for central nervous system diseases. Its research and development activities include treatments for schizophrenia, bipolar disorder, addiction and other serious neurological or psychiatric conditions, with an emphasis on long-acting injectable and extended-release formulations.

The company's marketed products include VIVITROL, an extended-release injectable form of naltrexone used to treat alcohol dependence and prevent relapse to opioid dependence after detoxification; ARISTADA, an extended-release injectable formulation of aripiprazole lauroxil for the treatment of schizophrenia in adults; and LYBALVI, an oral combination of olanzapine and samidorphan approved for schizophrenia and bipolar I disorder in adults.

Founded in Ireland in 1987, Alkermes has developed drug-delivery technologies intended to help extend dosing intervals and support medication adherence.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.