Alector (NASDAQ:ALEC) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Alector (NASDAQ:ALEC) announced its earnings results on Thursday. The company reported ($0.21) EPS for the quarter, beating the consensus estimate of ($0.23) by $0.02, FiscalAI reports. Alector had a negative return on equity of 295.17% and a negative net margin of 680.83%.The company had revenue of $3.32 million for the quarter, compared to analyst estimates of $1.43 million.

Alector Stock Up 22.8%

Shares of ALEC traded up $0.34 on Thursday, reaching $1.83. The company’s stock had a trading volume of 5,702,966 shares, compared to its average volume of 484,769. The stock has a market capitalization of $203.18 million, a PE ratio of -1.54 and a beta of 0.60. Alector has a twelve month low of $1.09 and a twelve month high of $3.40. The firm has a fifty day moving average of $1.69 and a 200-day moving average of $2.01. The company has a current ratio of 5.25, a quick ratio of 5.25 and a debt-to-equity ratio of 0.80.

Insiders Place Their Bets

In related news, CEO Arnon Rosenthal sold 87,216 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $1.97, for a total transaction of $171,815.52. Following the transaction, the chief executive officer directly owned 2,367,206 shares of the company’s stock, valued at $4,663,395.82. This trade represents a 3.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Neil Lindsay Berkley sold 19,360 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $1.97, for a total transaction of $38,139.20. Following the transaction, the chief financial officer owned 379,900 shares in the company, valued at approximately $748,403. This trade represents a 4.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 115,760 shares of company stock valued at $227,734 over the last three months. 8.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Alector

Several large investors have recently made changes to their positions in ALEC. Prudential Financial Inc. purchased a new position in shares of Alector in the 2nd quarter worth about $30,000. Virtu Financial LLC bought a new stake in Alector in the fourth quarter worth about $34,000. Dynamic Technology Lab Private Ltd purchased a new position in Alector in the fourth quarter valued at about $40,000. Oxford Asset Management LLP bought a new position in shares of Alector during the 4th quarter valued at approximately $67,000. Finally, Quadrature Capital Ltd bought a new position in shares of Alector during the 4th quarter valued at approximately $97,000. 85.83% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages have issued reports on ALEC. Weiss Ratings reissued a “sell (e+)” rating on shares of Alector in a research note on Friday, July 31st. Cantor Fitzgerald upgraded shares of Alector from a “neutral” rating to an “overweight” rating in a research note on Wednesday, April 15th. Morgan Stanley reiterated an “underweight” rating and set a $2.00 target price on shares of Alector in a research report on Monday, May 4th. Finally, Wall Street Zen raised shares of Alector from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Three analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $3.62.

About Alector

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.