Alvotech (NASDAQ:ALVO) Shares Gap Down on Disappointing Earnings

Alvotech (NASDAQ:ALVO)’s stock price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $5.60, but opened at $5.21. Alvotech shares last traded at $5.56, with a volume of 97,695 shares changing hands.

The company reported ($0.02) earnings per share for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.10). Alvotech had a negative return on equity of 38.36% and a net margin of 11.26%. Alvotech has set its FY 2025 guidance at EPS.

Analysts Set New Price Targets

Several research analysts have recently issued reports on ALVO shares. Zacks Research cut shares of Alvotech from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 21st. UBS Group decreased their price objective on shares of Alvotech from $16.00 to $14.00 and set a “buy” rating for the company in a report on Friday, July 18th. Weiss Ratings reissued a “sell (e+)” rating on shares of Alvotech in a report on Wednesday, October 8th. Northland Securities set a $10.00 price objective on shares of Alvotech in a research report on Tuesday, November 4th. Finally, Morgan Stanley set a $14.00 target price on Alvotech and gave the company an “overweight” rating in a research report on Tuesday, October 14th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $11.50.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of ALVO. Vanguard Group Inc. raised its holdings in shares of Alvotech by 31.1% during the first quarter. Vanguard Group Inc. now owns 4,192,461 shares of the company’s stock worth $40,306,000 after acquiring an additional 995,538 shares during the period. Invesco Ltd. increased its holdings in Alvotech by 110.6% during the 1st quarter. Invesco Ltd. now owns 23,604 shares of the company’s stock worth $228,000 after purchasing an additional 12,394 shares in the last quarter. Royce & Associates LP grew its position in shares of Alvotech by 7.6% during the 1st quarter. Royce & Associates LP now owns 171,043 shares of the company’s stock valued at $1,654,000 after acquiring an additional 12,043 shares during the period. Tempus Wealth Planning LLC raised its holdings in shares of Alvotech by 28.2% in the 2nd quarter. Tempus Wealth Planning LLC now owns 31,652 shares of the company’s stock valued at $289,000 after acquiring an additional 6,972 shares in the last quarter. Finally, Vident Advisory LLC increased its stake in shares of Alvotech by 24.7% in the first quarter. Vident Advisory LLC now owns 25,281 shares of the company’s stock worth $244,000 after buying an additional 5,009 shares during the period.

Alvotech Stock Down 0.3%

The firm has a market capitalization of $1.68 billion, a PE ratio of 24.28 and a beta of 0.10. The company’s fifty day simple moving average is $7.77 and its 200 day simple moving average is $8.70.

Alvotech Company Profile

Alvotech, through its subsidiaries, develops and manufactures biosimilar medicines for patients worldwide. It offers biosimilar products in the therapeutic areas of autoimmune, eye, and bone disorders, as well as cancer. The company's lead program is AVT02, a high concentration formulation biosimilar to Humira to treat various inflammatory conditions, including rheumatoid arthritis, psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT04, a biosimilar to Stelara to treat various inflammatory conditions comprising psoriatic arthritis, Crohn's disease, ulcerative colitis, plaque psoriasis, and other indications; AVT06, a biosimilar to Eylea to treat various conditions, such as age-related macular degeneration, macular edema, and diabetic retinopathy; and AVT03, a biosimilar to Xgeva and Prolia, which is in the pre-clinical phase to treat prevent bone fracture, spinal cord compression, and the need for radiation or bone surgery in patients with certain types of cancer, as well as prevent bone loss and increase bone mass.