Alector Inc. (NASDAQ: ALEC) stock jumped 2.98% on Friday to $6.56 against a previous-day closing price of $6.37. With 1.2 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.61 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $6.63 whereas the lowest price it dropped to was $6.36. The 52-week range on ALEC shows that it touched its highest point at $10.07 and its lowest point at $4.98 during that stretch. It currently has a 1-year price target of $15.29. Beta for the stock currently stands at 0.73.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ALEC was up-trending over the past week, with a rise of 15.09%, but this was down by -8.12% over a month. Three-month performance dropped to -13.91% while six-month performance rose 3.80%. The stock lost -32.23% in the past year, while it has lost -28.93% so far this year. A look at the trailing 12-month EPS for ALEC yields -1.68 with Next year EPS estimates of -2.25. For the next quarter, that number is -0.66. This implies an EPS growth rate of -249.10% for this year and -14.80% for next year. EPS is expected to decline by -9.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -27.10%.
Float and Shares Shorts:
At present, 83.50 million ALEC shares are outstanding with a float of 74.86 million shares on hand for trading. On Aug 30, 2023, short shares totaled 6.13 million, which was 7.31% higher than short shares on Jul 30, 2023. In addition to Dr. Arnon Rosenthal Ph.D. as the firm’s Co-Founder, CEO & Director, Dr. Sara Kenkare-Mitra Ph.D. serves as its Pres and Head of R&D.
Institutional Ownership:
Through their ownership of 85.52% of ALEC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 36.23% of ALEC, in contrast to 35.31% held by mutual funds. Shares owned by individuals account for 34.05%. As the largest shareholder in ALEC with 9.17% of the stake, Fidelity Management & Research Co holds 7,690,625 shares worth 7,690,625. A second-largest stockholder of ALEC, The Vanguard Group, Inc., holds 6,447,486 shares, controlling over 7.69% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ALEC, holding 5,442,189 shares or 6.49% stake. With a 2.44% stake in ALEC, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,043,595 shares are owned by the mutual fund manager. The Fidelity Growth Company Fund, which owns about 2.42% of ALEC stock, is the second-largest Mutual Fund holder. It holds 2,027,672 shares valued at 11.05 million. Fidelity Select Port. – Biotechno holds 2.34% of the stake in ALEC, owning 1,962,455 shares worth 10.7 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, ALEC reported revenue of $79.85M and operating income of $9.47M. The EBITDA in the recently reported quarter was $11.53M and diluted EPS was $0.12.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ALEC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ALEC analysts setting a high price target of $41.00 and a low target of $8.00, the average target price over the next 12 months is $17.13. Based on these targets, ALEC could surge 525.0% to reach the target high and rise by 21.95% to reach the target low. Reaching the average price target will result in a growth of 161.13% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded ALEC stock several times over the past three months with 4 Buys and 4 Sells. In these transactions, 216,628 shares were bought while 1,197,066 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 18 over the past year. The total number of shares bought during that period was 1,023,105 while 2,444,979 shares were sold.
