Alumis (NASDAQ:ALMS) Shares Down 5.9% - Time to Sell?

Key Points

• Alumis shares fell 5.9% to approximately $6.79 in midday trading, with volume 47% below the average. The stock is down sharply relative to its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $33.27, although several firms recently cut targets or downgraded the stock.
• The clinical-stage biopharmaceutical company missed quarterly expectations, reporting a $1.11-per-share loss and $1.66 million in revenue versus estimates of a $0.77 loss and $3.65 million in revenue. An insider director purchased more than 546,000 shares, while other insiders have been net sellers recently.

Alumis Inc. (NASDAQ:ALMS - Get Free Report)'s share price dropped 5.9% during mid-day trading on Friday. The stock traded as low as $6.79 and last traded at $6.7850. 1,187,589 shares traded hands during trading, a decline of 47% from the average daily volume of 2,253,851 shares. The stock had previously closed at $7.21.

Analysts Set New Price Targets

ALMS has been the subject of a number of analyst reports. Wells Fargo & Company lowered their target price on shares of Alumis from $51.00 to $25.00 and set an "overweight" rating for the company in a research note on Wednesday, September 2nd. Wall Street Zen downgraded Alumis from a "hold" rating to a "sell" rating in a report on Saturday, September 5th. Robert W. Baird set a $27.00 price objective on Alumis in a research note on Tuesday, September 1st. Morgan Stanley decreased their target price on Alumis from $39.00 to $29.00 and set an "overweight" rating for the company in a research note on Wednesday, September 2nd. Finally, Guggenheim lowered Alumis from a "buy" rating to a "neutral" rating in a research note on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $33.27.

Alumis Stock Down 7.3%

The business has a 50-day moving average price of $17.80 and a two-hundred day moving average price of $22.00. The company has a market capitalization of $864.72 million, a price-to-earnings ratio of -1.73 and a beta of -0.36.

Alumis (NASDAQ:ALMS - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($1.11) EPS for the quarter, missing analysts' consensus estimates of ($0.77) by ($0.34). Alumis had a negative net margin of 5,933.46% and a negative return on equity of 93.15%. The business had revenue of $1.66 million for the quarter, compared to the consensus estimate of $3.65 million. On average, sell-side analysts anticipate that Alumis Inc. will post -2.95 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Srinivas Akkaraju bought 546,581 shares of the company's stock in a transaction dated Tuesday, September 8th. The shares were bought at an average price of $10.63 per share, for a total transaction of $5,810,156.03. Following the completion of the acquisition, the director directly owned 4,937,026 shares of the company's stock, valued at $52,480,586.38. This trade represents a 12.45% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider David M. Goldstein sold 2,596 shares of the company's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $26.37, for a total value of $68,456.52. Following the sale, the insider owned 30,970 shares of the company's stock, valued at $816,678.90. This trade represents a 7.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 116,084 shares of company stock worth $1,548,493 in the last 90 days. Company insiders own 33.70% of the company's stock.

Institutional Trading of Alumis

Institutional investors have recently made changes to their positions in the company. Integrated Wealth Concepts LLC bought a new position in shares of Alumis during the 2nd quarter worth approximately $33,000. KBC Group NV bought a new stake in Alumis during the first quarter worth $42,000. Strs Ohio lifted its holdings in Alumis by 300.0% during the first quarter. Strs Ohio now owns 2,000 shares of the company's stock worth $44,000 after acquiring an additional 1,500 shares during the period. State of Wyoming purchased a new position in Alumis in the first quarter worth $57,000. Finally, EverSource Wealth Advisors LLC grew its stake in Alumis by 600.4% in the 1st quarter. EverSource Wealth Advisors LLC now owns 3,131 shares of the company's stock valued at $69,000 after purchasing an additional 2,684 shares during the period.

Alumis Company Profile

Alumis, Inc is a clinical-stage biopharmaceutical company focused on developing oral therapies for immune-mediated diseases. The company's research centers on selective allosteric inhibitors of tyrosine kinase 2 (TYK2), a protein involved in signaling pathways that regulate inflammation and immune responses.

Alumis' lead product candidate is ESK-001, an oral, highly selective TYK2 inhibitor being evaluated in inflammatory and autoimmune conditions, including plaque psoriasis, psoriatic arthritis and systemic lupus erythematosus.

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