Avalo Therapeutics (NASDAQ:AVTX) Trading Down 8.2% - Here's What Happened

Key Points

• Avalo Therapeutics shares fell 8.2% to about $18.09, with trading volume down 59% from its average daily level.
• Analyst sentiment remains broadly positive: 12 analysts rate the stock a Buy, one rates it Sell, and the consensus price target is $45.10.
• The company reported a quarterly loss of $0.83 per share, missing expectations by $0.25; analysts expect a full-year loss of $2.59 per share.

Avalo Therapeutics, Inc. (NASDAQ:AVTX - Get Free Report)'s share price dropped 8.2% on Wednesday . The company traded as low as $18.24 and last traded at $18.0880. Approximately 461,480 shares traded hands during trading, a decline of 59% from the average daily volume of 1,137,270 shares. The stock had previously closed at $19.71.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Mizuho boosted their price objective on shares of Avalo Therapeutics from $39.00 to $45.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. Bank of America assumed coverage on Avalo Therapeutics in a research note on Friday, June 12th. They set a "buy" rating and a $35.00 price target for the company. Cantor Fitzgerald reissued an "overweight" rating on shares of Avalo Therapeutics in a research report on Friday, July 24th. Guggenheim set a $48.00 price target on shares of Avalo Therapeutics and gave the stock a "buy" rating in a report on Friday, August 7th. Finally, 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. Twelve analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $45.10.

Avalo Therapeutics Trading Down 8.2%

The stock's 50 day moving average price is $19.14 and its 200 day moving average price is $17.02. The company has a market cap of $970.17 million, a price-to-earnings ratio of -4.14 and a beta of 0.78.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.83) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.58) by ($0.25). On average, equities analysts expect that Avalo Therapeutics, Inc. will post -2.59 earnings per share for the current fiscal year.

Insider Activity at Avalo Therapeutics

In related news, insider Mittie Doyle sold 1,450 shares of the stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $18.00, for a total value of $26,100.00. Following the transaction, the insider directly owned 51,776 shares of the company's stock, valued at approximately $931,968. This trade represents a 2.72% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 3,129 shares of company stock worth $59,680. Corporate insiders own 4.46% of the company's stock.

Hedge Funds Weigh In On Avalo Therapeutics

Several hedge funds and other institutional investors have recently modified their holdings of AVTX. Boothbay Fund Management LLC acquired a new position in Avalo Therapeutics during the second quarter valued at approximately $56,000. Dimensional Fund Advisors LP purchased a new position in shares of Avalo Therapeutics in the 3rd quarter valued at $143,000. AlphaCentric Advisors LLC acquired a new position in shares of Avalo Therapeutics during the 1st quarter valued at $174,000. California State Teachers Retirement System purchased a new stake in Avalo Therapeutics during the 2nd quarter worth $196,000. Finally, Jump Financial LLC acquired a new stake in Avalo Therapeutics in the 4th quarter valued at $238,000. 87.06% of the stock is owned by institutional investors and hedge funds.

About Avalo Therapeutics

Avalo Therapeutics is a clinical-stage biotechnology company focused on the discovery, development and commercialization of novel therapies for cardiometabolic, fibrotic and inflammatory diseases. The company's proprietary drug-design platform enables the creation of long-acting prodrugs with optimized pharmacokinetic profiles, aiming to improve efficacy, safety and patient adherence. By leveraging this technology, Avalo seeks to address key drivers of disease progression that remain underserved by existing treatments.

Its lead programs include AVTX-002, a first-in-class prodrug candidate designed to inhibit angiotensinogen for the treatment of hypertension and related cardiovascular disorders, and AVTX-006, an early-stage candidate targeting pathways implicated in fibrosis and metabolic dysfunction.

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