Alvotech (NASDAQ:ALVO) Trading Up 7.2% - Should You Buy?

Key Points

• Alvotech shares rose 7.2% to $5.7250 in Friday midday trading, with a market capitalization of approximately $1.80 billion.
• Analyst sentiment is generally positive: the stock has a “Moderate Buy” consensus rating from eight analysts and an average price target of $8.50, although ratings include one Sell recommendation.
• The company exceeded revenue expectations in its latest quarter with $106 million, but missed on earnings per share and remains unprofitable, reporting a net margin of -36.31%.

Shares of Alvotech (NASDAQ:ALVO - Get Free Report) were up 7.2% on Friday . The stock traded as high as $5.65 and last traded at $5.7250. Approximately 704,465 shares changed hands during mid-day trading, a decline of 0% from the average session volume of 704,637 shares. The stock had previously closed at $5.34.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. Wall Street Zen downgraded shares of Alvotech from a "hold" rating to a "sell" rating in a research report on Saturday, May 23rd. Evercore began coverage on Alvotech in a research note on Friday, August 14th. They issued an "outperform" rating on the stock. Weiss Ratings raised Alvotech from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, August 31st. Barclays upgraded Alvotech from an "underweight" rating to an "overweight" rating and upped their price objective for the company from $4.00 to $8.00 in a research report on Wednesday. Finally, UBS Group set a $8.00 price target on Alvotech in a research note on Wednesday. Five research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $8.50.

Alvotech Trading Up 11.8%

The stock has a market capitalization of $1.80 billion, a P/E ratio of -9.78 and a beta of 0.22. The business has a 50-day moving average price of $4.23 and a 200 day moving average price of $3.81.

Alvotech (NASDAQ:ALVO - Get Free Report) last posted its quarterly earnings data on Thursday, August 20th. The company reported ($0.11) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.06). Alvotech had a negative net margin of 36.31% and a negative return on equity of 11.92%. The firm had revenue of $106.00 million for the quarter, compared to the consensus estimate of $103.00 million. On average, sell-side analysts predict that Alvotech will post 0.01 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Citadel Advisors LLC purchased a new position in Alvotech during the 2nd quarter worth $6,376,000. Renaissance Technologies LLC increased its stake in shares of Alvotech by 146.9% in the first quarter. Renaissance Technologies LLC now owns 63,200 shares of the company's stock worth $217,000 after acquiring an additional 37,600 shares during the period. Finally, ProShare Advisors LLC raised its stake in shares of Alvotech by 24.0% during the 4th quarter. ProShare Advisors LLC now owns 13,826 shares of the company's stock valued at $71,000 after buying an additional 2,675 shares during the last quarter.

About Alvotech

Alvotech is a biopharmaceutical company headquartered in Reykjavik, Iceland, focused on developing and manufacturing biosimilar medicines. Its products are intended to provide alternatives to biologic therapies used to treat conditions including autoimmune diseases, cancer and eye disorders.

The company has established a pipeline spanning several therapeutic areas, with candidates targeting medicines such as ustekinumab, denosumab, secukinumab and aflibercept. Alvotech operates an integrated platform covering cell-line development, process development, analytical testing and commercial-scale manufacturing.

Founded in 2013, Alvotech serves international markets through commercial and strategic partnerships.

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