Traders Buy Large Volume of Put Options on Allogene Therapeutics (NASDAQ:ALLO)

Key Points

• Traders bought an unusually large volume of 4,437 put options on ALLO (≈+356% vs. typical), while intraday volume surged and the stock traded down to $2.01, signalling heightened bets on further downside or hedging activity.
• Allogene priced a dilutive underwritten offering to raise roughly $175M (87.5M shares at $2.00), a move that has pressured the share price and amplified near‑term volatility risk for existing shareholders.
• Offsetting near‑term headwinds, positive clinical and scientific news (ALPHA3 interim MRD clearance advantage of 58.3% vs 16.7% and an ALLO‑329 Nature Communications publication) plus analyst upgrades have lifted sentiment; consensus remains a “Moderate Buy” with a target of $8.13.

Allogene Therapeutics, Inc. (NASDAQ:ALLO - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock investors acquired 4,437 put options on the company. This represents an increase of 356% compared to the typical volume of 972 put options.

Analysts Set New Price Targets

Several research analysts recently issued reports on ALLO shares. HC Wainwright upped their target price on Allogene Therapeutics from $8.00 to $12.00 and gave the company a "buy" rating in a research report on Tuesday. Argus upped their target price on Allogene Therapeutics from $1.60 to $3.85 and gave the company a "market perform" rating in a research report on Tuesday. Wall Street Zen raised Allogene Therapeutics from a "sell" rating to a "hold" rating in a research report on Sunday, February 22nd. Citizens Jmp upped their target price on Allogene Therapeutics from $5.00 to $8.00 and gave the company a "market outperform" rating in a research report on Tuesday. Finally, Truist Financial raised Allogene Therapeutics to a "strong-buy" rating in a research report on Wednesday, March 25th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $8.13.

Allogene Therapeutics Stock Performance

NASDAQ:ALLO traded down $0.28 during mid-day trading on Wednesday, hitting $2.01. 48,994,153 shares of the company's stock traded hands, compared to its average volume of 8,013,071. The company has a fifty day moving average of $2.31 and a 200 day moving average of $1.71. Allogene Therapeutics has a twelve month low of $0.86 and a twelve month high of $4.46. The company has a market capitalization of $488.78 million, a P/E ratio of -2.32 and a beta of 0.53.

Allogene Therapeutics (NASDAQ:ALLO - Get Free Report) last announced its quarterly earnings data on Thursday, March 12th. The company reported ($0.17) earnings per share for the quarter, beating analysts' consensus estimates of ($0.25) by $0.08. On average, research analysts expect that Allogene Therapeutics will post -1.28 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Geoffrey M. Parker sold 24,001 shares of the company's stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $1.76, for a total transaction of $42,241.76. Following the completion of the sale, the chief financial officer directly owned 1,252,795 shares in the company, valued at $2,204,919.20. This represents a 1.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Zachary Roberts sold 35,700 shares of the company's stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $1.77, for a total value of $63,189.00. Following the sale, the executive vice president owned 581,166 shares of the company's stock, valued at $1,028,663.82. This trade represents a 5.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 278,452 shares of company stock valued at $534,053. Company insiders own 13.20% of the company's stock.

Hedge Funds Weigh In On Allogene Therapeutics

Institutional investors have recently bought and sold shares of the business. Savant Capital LLC purchased a new position in Allogene Therapeutics during the 3rd quarter worth approximately $27,000. Russell Investments Group Ltd. raised its position in Allogene Therapeutics by 11,159.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 21,844 shares of the company's stock worth $27,000 after buying an additional 21,650 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in Allogene Therapeutics by 5,267.6% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 24,047 shares of the company's stock worth $30,000 after buying an additional 23,599 shares during the last quarter. Mercer Global Advisors Inc. ADV purchased a new position in Allogene Therapeutics during the 3rd quarter worth approximately $30,000. Finally, Brighton Jones LLC raised its position in Allogene Therapeutics by 81.6% during the 3rd quarter. Brighton Jones LLC now owns 25,168 shares of the company's stock worth $31,000 after buying an additional 11,311 shares during the last quarter. 83.63% of the stock is owned by hedge funds and other institutional investors.

Key Allogene Therapeutics News

Here are the key news stories impacting Allogene Therapeutics this week:

• Positive Sentiment: Interim ALPHA3 trial data show a meaningful MRD clearance advantage for cemacabtagene ansegedleucel (cema‑cel) — 58.3% vs 16.7% in observation — supporting the therapy’s potential in first‑line LBCL and previously drove share gains. ALPHA3 Interim Data
• Positive Sentiment: Allogene published preclinical data for ALLO‑329 in Nature Communications, validating a next‑generation dual CD19/CD70 allogeneic CAR‑T program for autoimmune diseases — a scientific milestone that can increase program credibility and partnership/licensing interest. ALLO‑329 Nature Publication
• Positive Sentiment: Analysts have turned more constructive this week — multiple firms raised price targets and ratings (examples include Baird, Citizens/JMP and Jefferies’ “strong‑buy” upgrade) — boosting sentiment and institutional interest. Analyst Coverage
• Positive Sentiment: Elevated call‑option activity was reported, suggesting some traders are positioning for upside following the positive data/coverage. Options Flow
• Neutral Sentiment: Allogene has priced an underwritten offering to raise roughly $175M (87.5M shares at $2.00 each) — proceeds are earmarked for clinical and R&D expenses, which reduces near‑term cash risk and supports ongoing programs. Offering Pricing
• Negative Sentiment: The size and $2.00 price of the offering is dilutive and has pressured the share price; media and market commentary flagged a slide after the offering announcement. That dilution risk is the primary near‑term headwind for existing shareholders. Market Reaction
• Negative Sentiment: Unusually large put buying was recorded (4,437 puts, ~+356% vs typical daily put volume), signaling that some options traders are staking on further downside or hedging exposure. This, combined with the offering, amplifies short‑term volatility risk.

Allogene Therapeutics Company Profile

Allogene Therapeutics is a clinical-stage biotechnology company focused on developing allogeneic, or “off-the-shelf,” chimeric antigen receptor T-cell (CAR T) therapies to treat a range of hematologic malignancies and solid tumors. The company leverages gene-editing technologies to generate universally compatible engineered T cells, aiming to overcome the limitations of patient-specific CAR T approaches such as manufacturing delays, variable product quality and treatment resistance.

The company's pipeline includes multiple allogeneic CAR T candidates targeting key antigens in blood cancers.

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