Allogene Therapeutics (NASDAQ:ALLO) Shares Gap Down – Time to Sell?

Allogene Therapeutics, Inc. (NASDAQ:ALLO) shares gapped down before the market opened on Wednesday . The stock had previously closed at $2.28, but opened at $1.90. Allogene Therapeutics shares last traded at $2.0850, with a volume of 57,435,421 shares changing hands.

Key Stories Impacting Allogene Therapeutics

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

• Positive Sentiment: Interim ALPHA3 trial readout showed strong MRD clearance (58.3% with cema‑cel vs. 16.7% observation), a clinical signal that lifted sentiment around the company’s first‑line LBCL program. ALPHA3 interim results
• Positive Sentiment: Preclinical data for ALLO‑329 published in Nature Communications supports the company’s autoimmune pipeline expansion and longer‑term R&D story. Nature Communications publication
• Positive Sentiment: Multiple analyst upgrades/price target raises (including Jefferies to strong‑buy and higher targets from Baird, Citizens/JMP and others) are boosting expectations for upside. Analyst coverage/Jefferies upgrade
• Positive Sentiment: Unusually high call‑option activity was also reported, indicating some speculative bullish positioning by traders. High call option volume
• Neutral Sentiment: Volume and volatility are elevated as news flow and the offering process concentrate trading; this can amplify intraday moves without changing fundamentals immediately.
• Negative Sentiment: Allogene priced an underwritten public offering of 87.5M shares at $2.00 per share (gross proceeds ~$175M) with a 30‑day option to add shares — a sizeable dilutive raise that is pressuring the share price. Public offering priced
• Negative Sentiment: Unusual put buying was recorded (4,437 puts traded, ~356% above typical daily put volume), signaling hedging or outright bearish bets by some options traders.
• Negative Sentiment: Recent disclosures and data aggregators note consistent insider selling and mixed institutional flows, which can weigh on investor confidence amid a fresh equity raise. Quiver summary (offering & insider notes)

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Sanford C. Bernstein upped their price objective on shares of Allogene Therapeutics from $1.60 to $3.85 and gave the company a “market perform” rating in a report on Tuesday. Wall Street Zen raised shares of Allogene Therapeutics from a “sell” rating to a “hold” rating in a report on Sunday, February 22nd. Jefferies Financial Group reaffirmed a “buy” rating on shares of Allogene Therapeutics in a report on Monday. Citizens Jmp upped their price objective on shares of Allogene Therapeutics from $5.00 to $8.00 and gave the company a “market outperform” rating in a report on Tuesday. Finally, Canaccord Genuity Group reaffirmed a “buy” rating and set a $14.00 price objective on shares of Allogene Therapeutics in a report on Friday, March 13th. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $8.13.

Allogene Therapeutics Price Performance

The firm has a market capitalization of $508.28 million, a PE ratio of -2.40 and a beta of 0.53. The company’s fifty day simple moving average is $2.31 and its 200 day simple moving average is $1.71.

Allogene Therapeutics (NASDAQ:ALLO) last released its quarterly earnings data on Thursday, March 12th. The company reported ($0.17) EPS for the quarter, beating the consensus estimate of ($0.25) by $0.08. On average, analysts anticipate that Allogene Therapeutics, Inc. will post -1.28 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Geoffrey M. Parker sold 24,001 shares of the company’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $1.76, for a total transaction of $42,241.76. Following the sale, the chief financial officer directly owned 1,252,795 shares in the company, valued at $2,204,919.20. This represents a 1.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, SVP Earl Martin Douglas sold 22,900 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $1.76, for a total value of $40,304.00. Following the sale, the senior vice president owned 564,948 shares in the company, valued at approximately $994,308.48. This represents a 3.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 278,452 shares of company stock valued at $534,053. Corporate insiders own 13.20% of the company’s stock.

Institutional Investors Weigh In On Allogene Therapeutics

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Primecap Management Co. CA increased its position in shares of Allogene Therapeutics by 23.8% in the third quarter. Primecap Management Co. CA now owns 7,079,308 shares of the company’s stock worth $8,778,000 after purchasing an additional 1,360,168 shares during the last quarter. Aberdeen Group plc increased its position in shares of Allogene Therapeutics by 82.4% in the third quarter. Aberdeen Group plc now owns 1,582,265 shares of the company’s stock worth $1,962,000 after purchasing an additional 715,015 shares during the last quarter. AustralianSuper Pty Ltd bought a new position in shares of Allogene Therapeutics in the third quarter worth approximately $474,000. Patient Square Capital LP increased its position in shares of Allogene Therapeutics by 13.1% in the third quarter. Patient Square Capital LP now owns 2,981,396 shares of the company’s stock worth $3,697,000 after purchasing an additional 346,396 shares during the last quarter. Finally, Harold Davidson & Associates Inc. increased its position in shares of Allogene Therapeutics by 118.5% in the third quarter. Harold Davidson & Associates Inc. now owns 295,432 shares of the company’s stock worth $366,000 after purchasing an additional 160,204 shares during the last quarter. 83.63% of the stock is currently owned by institutional investors.

Allogene Therapeutics Company Profile

Allogene Therapeutics is a clinical-stage biotechnology company focused on developing allogeneic, or “off-the-shelf,” chimeric antigen receptor T-cell (CAR T) therapies to treat a range of hematologic malignancies and solid tumors. The company leverages gene-editing technologies to generate universally compatible engineered T cells, aiming to overcome the limitations of patient-specific CAR T approaches such as manufacturing delays, variable product quality and treatment resistance.

The company’s pipeline includes multiple allogeneic CAR T candidates targeting key antigens in blood cancers.