Traders Purchase Large Volume of Put Options on Avalo Therapeutics (NASDAQ:AVTX)

Key Points

• Investors bought 5,095 put options—about a 201% increase over typical daily put volume—indicating some market participants are hedging or betting on near‑term downside/volatility despite recent bullish activity.
• Avalo rallied roughly 36.4% to $22.18 on heavy volume after announcing positive Phase 2 topline results for abdakibart (AVTX‑009), prompting analyst upgrades and higher price targets (BTIG raised its target to $58).
• The company priced an underwritten offering of ~19.73 million shares at $17.75, expected to raise about $375 million to fund Phase 3 and corporate needs, which boosts runway but is dilutive to existing shareholders.

Avalo Therapeutics, Inc. (NASDAQ:AVTX - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock investors acquired 5,095 put options on the company. This represents an increase of approximately 201% compared to the average daily volume of 1,695 put options.

Avalo Therapeutics Trading Up 36.4%

Avalo Therapeutics stock traded up $5.92 during midday trading on Wednesday, hitting $22.18. The stock had a trading volume of 12,472,242 shares, compared to its average volume of 774,942. The stock has a market cap of $592.29 million, a P/E ratio of -3.90 and a beta of 0.78. Avalo Therapeutics has a 12 month low of $3.39 and a 12 month high of $23.71. The business has a fifty day moving average price of $15.33 and a 200 day moving average price of $16.24.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last issued its earnings results on Monday, March 23rd. The company reported ($0.37) EPS for the quarter, beating analysts' consensus estimates of ($1.54) by $1.17. The company had revenue of $0.06 million during the quarter, compared to analyst estimates of ($0.21) million. On average, equities analysts anticipate that Avalo Therapeutics will post -4.04 EPS for the current fiscal year.

Key Stories Impacting Avalo Therapeutics

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

• Positive Sentiment: Positive Phase 2 topline results for abdakibart (AVTX-009) in moderate-to-severe hidradenitis suppurativa — the trial met its primary endpoint at both doses and the company plans to advance to a registrational Phase 3 program. Phase 2 LOTUS Results
• Positive Sentiment: BTIG raised its price target from $40 to $58 and maintained a Buy rating, signaling substantial upside expectations if clinical progress continues and supporting bullish analyst sentiment. BTIG Price Target Raise
• Positive Sentiment: Wedbush raised its target to $40 and set an Outperform rating, adding to the cluster of recent upbeat analyst views and higher consensus price targets for AVTX. Wedbush Upgrade
• Neutral Sentiment: Avalo priced an underwritten public offering of ~19.73M shares (plus pre-funded warrants), raising roughly $375M in gross proceeds at $17.75/share; proceeds are earmarked to fund abdakibart Phase 3 and corporate needs. The capital improves runway but is dilutive to existing shareholders; offering is expected to close May 7, 2026. Public Offering Pricing
• Negative Sentiment: Unusually large put-option activity: investors bought 5,095 puts (a ~201% increase vs. typical daily put volume), indicating some market participants are hedging or betting on near-term downside/volatility despite the positive news flow.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. BTIG Research raised their price objective on Avalo Therapeutics from $40.00 to $58.00 and gave the company a "buy" rating in a research note on Wednesday. Wall Street Zen raised Avalo Therapeutics from a "strong sell" rating to a "hold" rating in a report on Sunday, March 29th. Wolfe Research started coverage on Avalo Therapeutics in a report on Thursday, April 9th. They issued an "outperform" rating and a $48.00 price objective for the company. Wedbush boosted their price objective on Avalo Therapeutics from $29.00 to $40.00 and gave the company an "outperform" rating in a report on Wednesday. Finally, HC Wainwright boosted their price objective on Avalo Therapeutics from $25.00 to $40.00 and gave the company a "buy" rating in a report on Wednesday, March 25th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $48.14.

Insider Buying and Selling

In other Avalo Therapeutics news, insider Mittie Doyle sold 3,970 shares of the firm's stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $18.01, for a total transaction of $71,499.70. Following the completion of the sale, the insider owned 3,622 shares in the company, valued at $65,232.22. This trade represents a 52.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Christopher Ryan Sullivan sold 8,457 shares of the firm's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $13.23, for a total value of $111,886.11. Following the sale, the chief financial officer owned 423 shares of the company's stock, valued at approximately $5,596.29. This trade represents a 95.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 63,015 shares of company stock valued at $987,326. 4.46% of the stock is owned by insiders.

Hedge Funds Weigh In On Avalo Therapeutics

A number of hedge funds and other institutional investors have recently bought and sold shares of AVTX. Geode Capital Management LLC boosted its stake in Avalo Therapeutics by 2.5% in the second quarter. Geode Capital Management LLC now owns 110,460 shares of the company's stock valued at $552,000 after acquiring an additional 2,648 shares during the period. Nantahala Capital Management LLC boosted its stake in Avalo Therapeutics by 10.6% in the second quarter. Nantahala Capital Management LLC now owns 995,000 shares of the company's stock valued at $4,965,000 after acquiring an additional 95,000 shares during the period. Bank of America Corp DE boosted its stake in Avalo Therapeutics by 7,066.8% in the second quarter. Bank of America Corp DE now owns 406,571 shares of the company's stock valued at $2,029,000 after acquiring an additional 400,898 shares during the period. Boothbay Fund Management LLC acquired a new position in Avalo Therapeutics in the second quarter valued at approximately $56,000. Finally, Aberdeen Group plc acquired a new position in Avalo Therapeutics in the third quarter valued at approximately $925,000. 87.06% of the stock is currently 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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