Avalo Therapeutics (NASDAQ:AVTX) Shares Down 6.6% - Should You Sell?

Key Points

• Avalo Therapeutics shares fell 6.6% to about $12.36, with trading volume roughly 41% below the average session level.
• Analyst sentiment remains broadly positive, with 12 Buy ratings and one Sell rating, an average “Moderate Buy” consensus, and a $45.10 average price target—though some firms recently downgraded the stock or reduced targets.
• The company missed quarterly earnings expectations, reporting an adjusted loss of $0.83 per share versus the $0.58 consensus estimate. Its lead candidate, AVTX-009, is being developed for immune-mediated diseases including hidradenitis suppurativa.

Avalo Therapeutics, Inc. (NASDAQ:AVTX - Get Free Report)'s stock price dropped 6.6% during trading on Tuesday. The stock traded as low as $12.41 and last traded at $12.3620. Approximately 667,714 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 1,137,168 shares. The stock had previously closed at $13.24.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. BTIG Research restated a "buy" rating and issued a $58.00 price target on shares of Avalo Therapeutics in a research note on Tuesday, June 16th. Weiss Ratings raised Avalo Therapeutics from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, August 11th. Wall Street Zen cut Avalo Therapeutics from a "hold" rating to a "sell" rating in a research report on Saturday, September 12th. Leerink Partners assumed coverage on Avalo Therapeutics in a report on Monday, July 6th. They issued an "outperform" rating and a $38.00 price objective on the stock. Finally, HC Wainwright dropped their price objective on Avalo Therapeutics from $35.00 to $30.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Twelve 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 presently has an average rating of "Moderate Buy" and an average target price of $45.10.

Avalo Therapeutics Stock Performance

The firm has a market cap of $648.65 million, a PE ratio of -2.78 and a beta of 0.68. The firm's 50-day moving average price is $17.54 and its two-hundred day moving average price is $16.90.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.83) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.58) by ($0.25). As a group, sell-side analysts predict that Avalo Therapeutics, Inc. will post -2.80 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related 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 value of $202,394.02. Following the completion of the sale, the chief financial officer directly owned 39,900 shares of the company's stock, valued at $651,567. The trade was a 23.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 three months. 4.46% of the stock is owned by insiders.

Hedge Funds Weigh In On Avalo Therapeutics

Several hedge funds have recently made changes to their positions in the company. Braidwell LP acquired a new position in Avalo Therapeutics in the 2nd quarter valued at $30,107,000. Seven Fleet Capital Management LP raised its holdings in Avalo Therapeutics by 806.0% in the first quarter. Seven Fleet Capital Management LP now owns 573,883 shares of the company's stock valued at $8,568,000 after buying an additional 510,540 shares during the period. Squarepoint Ops LLC lifted its holdings in shares of Avalo Therapeutics by 624.9% during the 2nd quarter. Squarepoint Ops LLC now owns 589,245 shares of the company's stock valued at $10,889,000 after acquiring an additional 507,960 shares in the last quarter. DV Trading LLC purchased a new stake in shares of Avalo Therapeutics in the first quarter worth about $5,376,000. Finally, Affinity Asset Advisors LLC boosted its stake in shares of Avalo Therapeutics by 27.6% in the first quarter. Affinity Asset Advisors LLC now owns 1,340,840 shares of the company's stock valued at $20,019,000 after purchasing an additional 289,786 shares during the period. Hedge funds and other institutional investors 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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