Avalo Therapeutics (NASDAQ:AVTX) Sets New 52-Week Low - Here's What Happened

Key Points

• Avalo Therapeutics hit a new 52-week low, falling to $11.21 during Tuesday trading, while its 50-day and 200-day moving averages were both around $16.82-$16.83.
• Analyst sentiment remains broadly positive, with 12 Buy ratings and one Sell rating producing a “Moderate Buy” consensus and a $45.10 target price. However, the company’s latest quarterly loss of $0.83 per share missed expectations of $0.58.
• Insiders have recently sold shares, including the CFO’s 12,394-share transaction, while institutional investors own a substantial 87.06% of the stock.

Avalo Therapeutics, Inc. (NASDAQ:AVTX - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday. The company traded as low as $11.21 and last traded at $11.59, with a volume of 2,221,901 shares traded. The stock had previously closed at $11.27.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AVTX. Wall Street Zen lowered Avalo Therapeutics from a "hold" rating to a "sell" rating in a research report on Saturday, September 12th. Leerink Partners initiated coverage on Avalo Therapeutics in a research report on Monday, July 6th. They issued an "outperform" rating and a $38.00 price target for the company. Cantor Fitzgerald reissued an "overweight" rating on shares of Avalo Therapeutics in a research note on Wednesday, September 16th. HC Wainwright reissued a "buy" rating on shares of Avalo Therapeutics in a research note on Friday. Finally, Weiss Ratings upgraded Avalo Therapeutics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Twelve analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $45.10.

Avalo Therapeutics Trading Up 2.8%

The firm's fifty day moving average is $16.83 and its 200 day moving average is $16.82.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.83) EPS for the quarter, missing analysts' consensus estimates of ($0.58) by ($0.25). Analysts anticipate that Avalo Therapeutics, Inc. will post -2.80 EPS for the current year.

Insider Activity at Avalo Therapeutics

In other news, CFO Christopher Sullivan sold 12,394 shares of the business's stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $16.33, for a total transaction of $202,394.02. Following the transaction, the chief financial officer directly owned 39,900 shares in the company, valued at $651,567. The trade was a 23.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 24,258 shares of company stock worth $415,434. Insiders own 4.46% of the company's stock.

Institutional Trading of Avalo Therapeutics

Hedge funds and other institutional investors have recently modified their holdings of the company. AlphaCentric Advisors LLC purchased a new position in Avalo Therapeutics in the first quarter valued at about $174,000. Glenmede Trust Co. NA raised its stake in shares of Avalo Therapeutics by 25.8% during the 1st quarter. Glenmede Trust Co. NA now owns 25,730 shares of the company's stock worth $384,000 after purchasing an additional 5,280 shares in the last quarter. Dimensional Fund Advisors LP purchased a new stake in shares of Avalo Therapeutics during the 1st quarter worth about $607,000. Sei Investments Co. purchased a new stake in shares of Avalo Therapeutics during the 1st quarter worth about $849,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Avalo Therapeutics during the 2nd quarter valued at about $1,897,000. 87.06% of the stock is currently owned by hedge funds and other institutional investors.

About Avalo Therapeutics

Avalo Therapeutics, Inc is a clinical-stage biotechnology company focused on developing therapies for immune-mediated diseases. The company's research strategy centers on addressing conditions in which abnormal immune-system activity contributes to inflammation and tissue damage.

Avalo's lead product candidate is AVTX-009, a fully human monoclonal antibody designed to neutralize interleukin-1 beta, a pro-inflammatory cytokine involved in several inflammatory disorders. The company is evaluating AVTX-009 in clinical development for hidradenitis suppurativa, a chronic inflammatory skin condition, and may pursue additional indications in which interleukin-1 beta plays a role.

The company was formerly known as Cerecor Inc and adopted the Avalo Therapeutics name as it shifted its strategic focus toward immunology and inflammation.

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