Alector, Inc. (NASDAQ:ALEC) Shares Shorted: Short Interest Up 66.8% in October

Alector, Inc. (NASDAQ:ALEC) was the target of a significant increase in short interest in October. As of October 15th, there was short interest totaling 10,254,239 shares, an increase of 66.8% from the September 30th total of 6,147,032 shares. Currently, 10.0% of the shares of the stock are sold short. Based on an average daily volume of 10,952,676 shares, the short-interest ratio is presently 0.9 days.

Analyst Ratings Changes

Several equities analysts have weighed in on ALEC shares. Weiss Ratings raised Alector from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, August 13th. UBS Group restated a “neutral” rating and set a $1.50 target price on shares of Alector in a report on Tuesday, October 6th. Morgan Stanley boosted their target price on Alector from $2.00 to $3.00 and gave the stock an “underweight” rating in a research report on Tuesday, October 6th. Finally, HC Wainwright upped their price target on Alector from $5.00 to $8.00 and gave the company a “buy” rating in a research note on Wednesday, October 14th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Alector has an average rating of “Hold” and a consensus price target of $4.62.

Insider Activity at Alector

In other news, CEO Arnon Rosenthal sold 72,606 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $2.66, for a total value of $193,131.96. Following the transaction, the chief executive officer owned 2,294,600 shares of the company’s stock, valued at $6,103,636. This represents a 3.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Neil Berkley sold 29,251 shares of the stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $2.66, for a total value of $77,807.66. Following the completion of the transaction, the chief financial officer directly owned 350,649 shares in the company, valued at approximately $932,726.34. This trade represents a 7.70% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 111,303 shares of company stock valued at $295,633 in the last 90 days. 8.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Alector

Several hedge funds have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in Alector in the 2nd quarter worth about $15,774,000. Nantahala Capital Management LLC bought a new stake in Alector in the 2nd quarter valued at about $8,679,399. Merck & Co. Inc. acquired a new position in shares of Alector during the 2nd quarter worth approximately $7,126,896. ADAR1 Capital Management LLC acquired a new position in shares of Alector during the 2nd quarter worth approximately $5,796,000. Finally, Spruce Street Capital LP bought a new position in shares of Alector during the second quarter worth approximately $4,223,147. 85.83% of the stock is currently owned by institutional investors and hedge funds.

Alector Stock Performance

ALEC opened at $2.15 on Tuesday. The business’s 50-day moving average price is $2.08 and its two-hundred day moving average price is $2.03. Alector has a 1 year low of $1.09 and a 1 year high of $2.76. The company has a market capitalization of $240.06 million, a price-to-earnings ratio of -1.95 and a beta of 0.62. The company has a debt-to-equity ratio of 0.80, a current ratio of 5.26 and a quick ratio of 5.26.

Alector (NASDAQ:ALEC) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.21) earnings per share for the quarter, topping the consensus estimate of ($0.23) by $0.02. The company had revenue of $3.32 million during the quarter, compared to analysts’ expectations of $1.71 million. Alector had a negative return on equity of 531.03% and a negative net margin of 850.13%. Equities analysts expect that Alector will post -0.47 EPS for the current fiscal year.

About Alector

Alector, Inc (NASDAQ: ALEC) is a clinical-stage biotechnology company focused on developing therapies for neurodegenerative diseases. The company’s research platform, known as immuno-neurology, is designed to use the body’s immune system to protect or restore the brain’s ability to maintain healthy neural connections.

Alector’s investigational pipeline has included antibody-based treatments for conditions such as frontotemporal dementia and Alzheimer’s disease. Its programs have targeted biological pathways associated with neurodegeneration, including progranulin and TREM2.