Avalo Therapeutics (NASDAQ:AVTX) Shares Down 5.8% - Should You Sell?

Key Points

• Avalo Therapeutics shares fell 5.8% to about $13.76, with trading volume sharply below average.
• Analysts remain broadly optimistic, with 12 Buy ratings and one Sell rating; the consensus is “Moderate Buy” with an average price target of $45.10.
• The company reported a larger-than-expected quarterly loss of $0.83 per share versus the $0.58 consensus estimate, while insiders have sold shares totaling approximately $415,000 over the past quarter.

Avalo Therapeutics, Inc. (NASDAQ:AVTX - Get Free Report) traded down 5.8% during trading on Tuesday. The company traded as low as $14.17 and last traded at $13.7560. 34,818 shares changed hands during mid-day trading, a decline of 97% from the average session volume of 1,143,740 shares. The stock had previously closed at $14.60.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on AVTX shares. Guggenheim set a $48.00 target price on Avalo Therapeutics and gave the stock a "buy" rating in a report on Friday, August 7th. Weiss Ratings raised shares of Avalo Therapeutics from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, August 11th. Bank of America began coverage on shares of Avalo Therapeutics in a research note on Friday, June 12th. They issued a "buy" rating and a $35.00 price objective for the company. HC Wainwright decreased their target price on shares of Avalo Therapeutics from $35.00 to $30.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Finally, BTIG Research reaffirmed a "buy" rating and set a $58.00 target price on shares of Avalo Therapeutics in a report on Tuesday, June 16th. Twelve equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $45.10.

Avalo Therapeutics Price Performance

The company has a market cap of $720.79 million, a P/E ratio of -3.08 and a beta of 0.68. The stock has a 50-day moving average of $18.08 and a 200 day moving average of $16.91.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.83) earnings per share for the quarter, missing the consensus estimate of ($0.58) by ($0.25). Sell-side analysts predict that Avalo Therapeutics, Inc. will post -2.82 EPS for the current year.

Insider Transactions at Avalo Therapeutics

In other Avalo Therapeutics news, CFO Christopher Sullivan sold 12,394 shares of the business's stock in a transaction that occurred 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 completion of 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 24,258 shares of company stock valued at $415,434 over the last quarter. Company insiders own 4.46% of the company's stock.

Institutional Investors Weigh In On Avalo Therapeutics

Large investors have recently modified their holdings of the business. AlphaCentric Advisors LLC acquired a new position in shares of Avalo Therapeutics during the 1st quarter worth $174,000. Glenmede Trust Co. NA boosted its stake in Avalo Therapeutics by 25.8% in the first quarter. Glenmede Trust Co. NA now owns 25,730 shares of the company's stock valued at $384,000 after buying an additional 5,280 shares in the last quarter. Dimensional Fund Advisors LP acquired a new stake in Avalo Therapeutics in the first quarter valued at about $607,000. Artia Global Partners LP bought a new position in Avalo Therapeutics in the fourth quarter valued at about $755,000. Finally, 683 Capital Management LLC acquired a new position in Avalo Therapeutics during the fourth quarter worth about $1,032,000. Institutional investors and hedge funds own 87.06% of the company's stock.

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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