Alector (NASDAQ:ALEC) Cut to Underperform at Bank of America

Bank of America downgraded shares of Alector (NASDAQ:ALEC) from a neutral rating to an underperform rating in a research note released on Wednesday morning, Marketbeat reports. Bank of America currently has $1.00 price objective on the stock, down from their prior price objective of $9.00.

A number of other analysts have also recently weighed in on the stock. HC Wainwright dropped their target price on shares of Alector from $35.00 to $7.00 and set a “buy” rating on the stock in a report on Friday, November 29th. BTIG Research cut their price target on Alector from $16.00 to $5.00 and set a “buy” rating on the stock in a report on Tuesday, November 26th. Cantor Fitzgerald restated an “overweight” rating on shares of Alector in a research note on Tuesday, November 26th. Finally, Morgan Stanley cut Alector from an “equal weight” rating to an “underweight” rating and cut their target price for the company from $10.00 to $3.00 in a research note on Tuesday, November 26th. Two analysts have rated the stock with a sell rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Alector currently has an average rating of “Hold” and an average price target of $7.17.

Alector Stock Performance

NASDAQ:ALEC opened at $2.16 on Wednesday. Alector has a one year low of $2.00 and a one year high of $8.90. The business’s 50-day simple moving average is $4.34 and its 200 day simple moving average is $4.88. The stock has a market cap of $211.54 million, a price-to-earnings ratio of -1.27 and a beta of 0.51.

Alector (NASDAQ:ALEC) last posted its quarterly earnings data on Wednesday, November 6th. The company reported ($0.43) EPS for the quarter, beating analysts’ consensus estimates of ($0.53) by $0.10. The firm had revenue of $15.34 million for the quarter, compared to the consensus estimate of $16.33 million. Alector had a negative net margin of 257.54% and a negative return on equity of 108.77%. On average, equities research analysts predict that Alector will post -1.86 EPS for the current year.

Insider Transactions at Alector

In other news, insider Sara Kenkare-Mitra sold 26,500 shares of the company’s stock in a transaction dated Monday, December 2nd. The stock was sold at an average price of $2.52, for a total value of $66,780.00. Following the transaction, the insider now owns 565,215 shares in the company, valued at $1,424,341.80. This represents a 4.48 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Marc Grasso sold 16,489 shares of the firm’s stock in a transaction that occurred on Monday, December 2nd. The stock was sold at an average price of $2.52, for a total transaction of $41,552.28. Following the sale, the chief financial officer now owns 330,651 shares of the company’s stock, valued at approximately $833,240.52. This represents a 4.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 95,161 shares of company stock valued at $239,806 over the last three months. Company insiders own 9.10% of the company’s stock.

Hedge Funds Weigh In On Alector

Several institutional investors and hedge funds have recently modified their holdings of ALEC. Gladius Capital Management LP bought a new stake in shares of Alector in the 2nd quarter valued at approximately $29,000. Point72 DIFC Ltd bought a new stake in shares of Alector during the 3rd quarter worth $29,000. Point72 Asia Singapore Pte. Ltd. acquired a new position in Alector during the 3rd quarter worth $40,000. nVerses Capital LLC bought a new stake in Alector during the third quarter valued at about $51,000. Finally, Valence8 US LP acquired a new stake in shares of Alector in the third quarter valued at about $69,000. 85.83% of the stock is currently owned by hedge funds and other institutional investors.

Alector Company Profile

Alector, Inc, a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, an immune activity in the brain with genetic links to multiple neurodegenerative disorders, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases.