Alumis (NASDAQ:ALMS) Shares Gap Down - Here's Why

Key Points

• Alumis shares plunged nearly 55%, opening at $9.93 versus a prior close of $21.81, amid heavy trading volume.
• The company reported a wider-than-expected quarterly loss of $1.11 per share and revenue of $1.66 million, well below analysts’ $3.65 million estimate.
• Despite the sell-off, analysts maintain a “Moderate Buy” consensus with an average price target of $40.30, while insiders have sold nearly 20,000 shares over the past quarter.

Alumis Inc. (NASDAQ:ALMS - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $21.81, but opened at $9.93. Alumis shares last traded at $10.0690, with a volume of 5,638,520 shares trading hands.

Analysts Set New Price Targets

Several brokerages have recently commented on ALMS. HC Wainwright reiterated a "neutral" rating and set a $25.00 target price on shares of Alumis in a research note on Friday, August 14th. Chardan Capital increased their price target on Alumis from $38.00 to $40.00 and gave the company a "buy" rating in a research note on Tuesday, May 19th. Morgan Stanley reaffirmed an "overweight" rating and set a $39.00 price target on shares of Alumis in a report on Friday, May 15th. Wells Fargo & Company lifted their price objective on shares of Alumis from $49.00 to $51.00 and gave the stock an "overweight" rating in a research report on Friday, May 15th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Alumis in a report on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $40.30.

Alumis Price Performance

The stock has a market capitalization of $1.19 billion, a price-to-earnings ratio of -2.40 and a beta of -0.69. The company's 50-day simple moving average is $26.50 and its 200-day simple moving average is $25.05.

Alumis (NASDAQ:ALMS - Get Free Report) last posted its earnings results on Thursday, August 13th. The company reported ($1.11) EPS for the quarter, missing the consensus estimate of ($0.77) by ($0.34). The firm had revenue of $1.66 million during the quarter, compared to analyst estimates of $3.65 million. Alumis had a negative net margin of 5,933.46% and a negative return on equity of 93.15%. Research analysts expect that Alumis Inc. will post -2.95 earnings per share for the current year.

Insider Transactions at Alumis

In other Alumis news, insider Mark Christopher Bradley sold 2,572 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 $67,823.64. Following the transaction, the insider directly owned 48,533 shares of the company's stock, valued at $1,279,815.21. This represents a 5.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider David M. Goldstein sold 2,596 shares of Alumis 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 directly owned 30,970 shares of the company's stock, valued at $816,678.90. This represents a 7.73% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 19,953 shares of company stock worth $534,311. 33.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Alumis

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in Alumis in the 2nd quarter worth about $231,259,000. Samsara Biocapital LLC grew its position in shares of Alumis by 19.9% during the 4th quarter. Samsara Biocapital LLC now owns 5,756,984 shares of the company's stock worth $56,188,000 after purchasing an additional 955,614 shares in the last quarter. venBio Partners LLC bought a new position in shares of Alumis during the second quarter worth approximately $127,429,401. Vanguard Group Inc. increased its holdings in shares of Alumis by 18.4% during the third quarter. Vanguard Group Inc. now owns 4,029,615 shares of the company's stock worth $16,078,000 after purchasing an additional 625,404 shares during the period. Finally, Cormorant Asset Management LP raised its position in shares of Alumis by 69.3% in the fourth quarter. Cormorant Asset Management LP now owns 3,635,596 shares of the company's stock valued at $35,483,000 after buying an additional 1,488,200 shares in the last quarter.

About Alumis

Our mission is to significantly improve the lives of patients by replacing broad immunosuppression with targeted therapies. Our name, Alumis, captures our mission to enlighten immunology, and is inspired by the words "allumer"-French for illuminate-and "immunis"-Latin for the immune system. We are a clinical stage biopharmaceutical company with an initial focus on developing our two Tyrosine Kinase 2 (TYK2) inhibitors: ESK-001, a second-generation inhibitor that we are developing to maximize target inhibition and optimize tolerability, and A-005, a central nervous system (CNS) penetrant molecule.

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