Avalyn Pharma (NASDAQ:AVLN) Shares Gap Down - Should You Sell?

Key Points

• Avalyn Pharma shares fell sharply, opening at $27.22 after closing at $28.13 and later trading at $26.41. The stock remains below its 50-day moving average of $33.48.
• Analyst views are mixed: Raymond James and Morgan Stanley issued bullish ratings with targets of $60 and $57, while Wall Street Zen and Weiss Ratings recommended selling. Overall, the consensus is “Moderate Buy” with a $60 average target.
• Avalyn reported a quarterly loss of $0.98 per share, narrowly beating estimates, and analysts expect a full-year loss of $3.81 per share. The clinical-stage biopharmaceutical company is developing inhaled therapies for pulmonary fibrosis, led by its AP01 candidate.

Shares of Avalyn Pharma Inc. (NASDAQ:AVLN - Get Free Report) gapped down prior to trading on Tuesday. The stock had previously closed at $28.13, but opened at $27.22. Avalyn Pharma shares last traded at $26.41, with a volume of 20,107 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on AVLN. Wall Street Zen lowered Avalyn Pharma from a "hold" rating to a "sell" rating in a report on Sunday, September 20th. Weiss Ratings started coverage on Avalyn Pharma in a research note on Thursday, August 13th. They issued a "sell (d+)" rating for the company. Raymond James Financial started coverage on shares of Avalyn Pharma in a report on Friday. They issued an "outperform" rating and a $60.00 target price on the stock. Finally, Morgan Stanley lifted their price target on shares of Avalyn Pharma from $53.00 to $57.00 and gave the stock an "overweight" rating in a research note on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $60.00.

Avalyn Pharma Price Performance

The company has a current ratio of 33.12, a quick ratio of 33.12 and a debt-to-equity ratio of 0.04. The company has a 50 day moving average price of $33.48. The firm has a market cap of $1.15 billion and a price-to-earnings ratio of -1.14.

Avalyn Pharma (NASDAQ:AVLN - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported ($0.98) EPS for the quarter, topping analysts' consensus estimates of ($1.03) by $0.05. On average, analysts anticipate that Avalyn Pharma Inc. will post -3.81 earnings per share for the current year.

Institutional Trading of Avalyn Pharma

Several hedge funds and other institutional investors have recently made changes to their positions in AVLN. Bank of New York Mellon Corp purchased a new position in Avalyn Pharma in the second quarter valued at about $1,321,000. State Street Corp purchased a new stake in shares of Avalyn Pharma during the 2nd quarter worth approximately $10,501,000. Braidwell LP acquired a new stake in shares of Avalyn Pharma in the 2nd quarter worth approximately $26,382,000. Finally, Montanova Capital LLC purchased a new position in Avalyn Pharma in the 2nd quarter valued at approximately $82,402,000.

About Avalyn Pharma

Avalyn Pharma, Inc is a clinical-stage biopharmaceutical company focused on developing inhaled therapies for serious fibrotic lung diseases. The company's primary focus is pulmonary fibrosis, a group of progressive conditions in which scar tissue builds up in the lungs and impairs breathing.

Avalyn's lead product candidate is AP01, an inhaled formulation of pirfenidone being developed for the treatment of idiopathic pulmonary fibrosis and other forms of pulmonary fibrosis. By delivering therapy directly to the lungs, Avalyn aims to provide a treatment option that may improve local drug exposure while potentially reducing some of the tolerability challenges associated with oral antifibrotic therapies.

The company's development programs are centered on advancing inhaled medicines through clinical testing and, if successful, regulatory review.

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