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

Shares of Alvotech (NASDAQ:ALVO) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $3.57, but opened at $3.31. Alvotech shares last traded at $3.2080, with a volume of 176,443 shares trading hands.

The company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.02). The firm had revenue of $105.94 million during the quarter, compared to the consensus estimate of $112.39 million. Alvotech had a negative net margin of 14.36% and a negative return on equity of 11.92%.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on ALVO shares. Barclays reduced their target price on shares of Alvotech from $5.00 to $4.00 and set an “underweight” rating on the stock in a report on Tuesday, March 24th. Wall Street Zen raised shares of Alvotech from a “sell” rating to a “hold” rating in a report on Saturday, April 18th. Zacks Research upgraded shares of Alvotech from a “strong sell” rating to a “hold” rating in a research report on Thursday, March 19th. UBS Group dropped their price target on shares of Alvotech from $10.00 to $6.00 and set a “buy” rating on the stock in a research report on Tuesday, March 24th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Alvotech in a research report on Monday, April 20th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Alvotech currently has an average rating of “Hold” and a consensus target price of $7.60.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. State of Wyoming acquired a new position in shares of Alvotech during the 3rd quarter valued at $54,000. ProShare Advisors LLC lifted its position in shares of Alvotech by 24.0% during the 4th quarter. ProShare Advisors LLC now owns 13,826 shares of the company’s stock valued at $71,000 after acquiring an additional 2,675 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its holdings in Alvotech by 25.7% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 15,211 shares of the company’s stock worth $78,000 after buying an additional 3,110 shares during the last quarter. Magnetar Financial LLC acquired a new position in Alvotech during the third quarter worth $86,000. Finally, Ulland Investment Advisors LLC acquired a new position in Alvotech during the third quarter worth $92,000.

Alvotech Price Performance

The stock has a market cap of $983.90 million, a price-to-earnings ratio of -13.04 and a beta of 0.21. The company’s fifty day simple moving average is $3.60 and its two-hundred day simple moving average is $4.76.

About Alvotech

Alvotech (NASDAQ:ALVO) is a global biopharmaceutical company specializing in the development, manufacturing and commercialization of biosimilar medicines. The company focuses on creating high‐quality, cost‐effective alternatives to established biologic therapies in areas such as immunology, oncology and other specialty care fields. By leveraging in‐house research and a vertically integrated manufacturing platform, Alvotech aims to bring approved biosimilars to market more rapidly and with greater cost efficiency than many traditional biosimilar developers.

Since its founding in 2013, Alvotech has built a diversified pipeline of monoclonal antibody biosimilars, targeting blockbuster reference products including adalimumab (originally branded Humira), bevacizumab (Avastin) and ustekinumab (Stelara).