Avalyn Pharma (NASDAQ:AVLN) Stock Price Down 9.2% - Here's Why

Key Points

• Avalyn Pharma shares fell 9.2% to about $29.47 in mid-day trading, with trading volume down 58% from its average.
• Analyst opinions remain mixed: Morgan Stanley raised its target to $57 with an “overweight” rating, while Weiss Ratings and Wall Street Zen issued “sell” recommendations. The overall consensus remains “Moderate Buy,” with a $60 price target.
• Avalyn reported a quarterly loss of $0.98 per share, slightly better than the expected $1.03 loss. Several institutional investors, including Montanova Capital and Braidwell, recently established sizable positions in the clinical-stage biotech.

Avalyn Pharma Inc. (NASDAQ:AVLN - Get Free Report)'s stock price dropped 9.2% during mid-day trading on Wednesday . The stock traded as low as $29.14 and last traded at $29.47. 130,560 shares traded hands during mid-day trading, a decline of 58% from the average daily volume of 312,908 shares. The stock had previously closed at $32.45.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Weiss Ratings assumed coverage on Avalyn Pharma in a research report on Thursday, August 13th. They set a "sell (d+)" rating for the company. Zacks Research upgraded Avalyn Pharma to a "hold" rating in a research note on Wednesday, May 27th. Morgan Stanley lifted their price objective on Avalyn Pharma from $53.00 to $57.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Wall Street Zen lowered shares of Avalyn Pharma from a "hold" rating to a "sell" rating in a research note on Sunday. Finally, Evercore began coverage on shares of Avalyn Pharma in a report on Tuesday, May 26th. They set an "outperform" rating and a $51.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Avalyn Pharma has an average rating of "Moderate Buy" and a consensus price target of $60.00.

Avalyn Pharma Price Performance

The stock's 50-day moving average is $33.49. The company has a debt-to-equity ratio of 0.04, a quick ratio of 33.12 and a current ratio of 33.12. The stock has a market capitalization of $1.32 billion and a P/E ratio of -1.30.

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

Institutional Investors Weigh In On Avalyn Pharma

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

About Avalyn Pharma

Avalyn Pharma is a clinical-stage biopharmaceutical company focused on developing inhaled therapies for serious and progressive pulmonary diseases. The company is working to deliver established antifibrotic medicines directly to the lungs through proprietary inhalation technologies, with the goal of improving treatment and potentially reducing systemic exposure and related side effects.

Avalyn's lead program, AP01, is an inhaled formulation of pirfenidone being developed for patients with idiopathic pulmonary fibrosis, a chronic lung disease characterized by progressive scarring and declining respiratory function.

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