Alector (NASDAQ:ALEC) Announces Earnings Results

Alector (NASDAQ:ALEC) announced its earnings results on Wednesday. The company reported ($0.34) earnings per share for the quarter, topping the consensus estimate of ($0.39) by $0.05, FiscalAI reports. The company had revenue of $6.24 million during the quarter, compared to analyst estimates of $1.78 million. Alector had a negative net margin of 156.03% and a negative return on equity of 123.02%.

Alector Stock Up 9.1%

ALEC stock traded up $0.20 during mid-day trading on Wednesday, reaching $2.39. The company had a trading volume of 990,575 shares, compared to its average volume of 931,002. The firm has a fifty day simple moving average of $1.79 and a 200 day simple moving average of $2.03. The company has a debt-to-equity ratio of 0.17, a quick ratio of 3.76 and a current ratio of 3.76. The company has a market capitalization of $260.87 million, a price-to-earnings ratio of -2.23 and a beta of 0.64. Alector has a fifty-two week low of $0.87 and a fifty-two week high of $3.40.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on ALEC shares. Morgan Stanley reaffirmed an “underweight” rating on shares of Alector in a research report on Thursday, January 8th. Weiss Ratings restated a “sell (d-)” rating on shares of Alector in a research report on Wednesday, January 21st. Wall Street Zen upgraded Alector from a “sell” rating to a “hold” rating in a report on Saturday. Finally, BTIG Research upgraded Alector from a “hold” rating to a “strong-buy” rating in a report on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $3.25.

Insider Buying and Selling

In related news, insider Sara Kenkare-Mitra sold 41,687 shares of Alector stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $1.12, for a total value of $46,689.44. Following the completion of the transaction, the insider owned 501,652 shares in the company, valued at $561,850.24. The trade was a 7.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Neil Lindsay Berkley sold 37,261 shares of the business’s stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $1.12, for a total transaction of $41,732.32. Following the transaction, the chief financial officer owned 374,309 shares of the company’s stock, valued at $419,226.08. This trade represents a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 196,104 shares of company stock worth $220,064. Company insiders own 9.70% of the company’s stock.

Institutional Trading of Alector

Hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in shares of Alector by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 6,034,659 shares of the company’s stock valued at $17,863,000 after acquiring an additional 46,955 shares during the last quarter. Balyasny Asset Management L.P. acquired a new position in Alector in the fourth quarter valued at approximately $5,094,000. Jacobs Levy Equity Management Inc. boosted its holdings in Alector by 76.5% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 2,173,202 shares of the company’s stock valued at $3,390,000 after purchasing an additional 942,228 shares in the last quarter. Ikarian Capital LLC increased its stake in Alector by 174.0% in the fourth quarter. Ikarian Capital LLC now owns 2,082,606 shares of the company’s stock valued at $3,249,000 after purchasing an additional 1,322,606 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in Alector by 11.5% during the fourth quarter. Geode Capital Management LLC now owns 2,075,220 shares of the company’s stock worth $3,238,000 after purchasing an additional 213,962 shares in the last quarter. 85.83% of the stock is currently owned by institutional investors and hedge funds.

Alector Company Profile

Alector is a clinical-stage biotechnology company headquartered in South San Francisco, California. Founded in 2013, the company is focused on discovering and developing immuno-neurology therapies that target the innate immune system to treat a range of neurodegenerative disorders. Alector’s approach aims to harness the body’s natural defense mechanisms to clear pathological proteins and restore neuronal function in conditions such as Alzheimer’s disease and frontotemporal dementia.

The company’s pipeline includes multiple product candidates in both preclinical and clinical stages, with lead programs AL001 and AL002 advancing in frontotemporal dementia and Alzheimer’s disease studies.