Zacks Investment Research Downgrades Alector (NASDAQ:ALEC) to Sell

Alector (NASDAQ:ALEC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday, Zacks.com reports.

According to Zacks, “Alector Inc. is a clinical stage biotechnology company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegenerative diseases. Its product portfolio includes AL001, AL101, Al002 and AL003 which are in clinical stage. Alector Inc. is headquartered in South San Francisco, California. “

A number of other analysts have also weighed in on the company. ValuEngine lowered Alector from a “buy” rating to a “hold” rating in a research note on Friday, September 27th. Cowen restated a “buy” rating on shares of Alector in a research note on Wednesday, July 17th. One investment analyst has rated the stock with a sell rating, one has given a hold rating and six have issued a buy rating to the company. Alector has an average rating of “Buy” and a consensus target price of $26.67.

Shares of NASDAQ:ALEC traded down $0.34 during midday trading on Monday, reaching $14.68. The company’s stock had a trading volume of 170,252 shares, compared to its average volume of 582,576. Alector has a fifty-two week low of $13.64 and a fifty-two week high of $27.00. The company has a market capitalization of $1.00 billion and a P/E ratio of -3.18. The company has a debt-to-equity ratio of 0.17, a current ratio of 6.18 and a quick ratio of 6.18. The business’s fifty day simple moving average is $16.52 and its 200-day simple moving average is $18.88.

Alector (NASDAQ:ALEC) last announced its earnings results on Monday, August 12th. The company reported ($0.36) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.33) by ($0.03). The firm had revenue of $6.92 million during the quarter. On average, analysts forecast that Alector will post -1.39 earnings per share for the current fiscal year.

In related news, major shareholder Orbimed Advisors Llc sold 650,000 shares of Alector stock in a transaction dated Wednesday, August 7th. The stock was sold at an average price of $17.90, for a total value of $11,635,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Robert Paul sold 2,000 shares of Alector stock in a transaction dated Tuesday, August 20th. The stock was sold at an average price of $16.00, for a total value of $32,000.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 676,000 shares of company stock valued at $12,079,700. Corporate insiders own 34.40% of the company’s stock.

A number of hedge funds have recently made changes to their positions in the stock. Bamco Inc. NY acquired a new stake in Alector in the second quarter worth about $4,632,000. Citadel Advisors LLC acquired a new stake in Alector in the second quarter worth about $798,000. Vanguard Group Inc. increased its position in Alector by 5.0% in the second quarter. Vanguard Group Inc. now owns 909,010 shares of the company’s stock worth $17,271,000 after purchasing an additional 43,274 shares during the period. BlackRock Inc. increased its position in Alector by 97.4% in the second quarter. BlackRock Inc. now owns 866,820 shares of the company’s stock worth $16,470,000 after purchasing an additional 427,642 shares during the period. Finally, Virtus ETF Advisers LLC acquired a new stake in Alector in the second quarter worth about $251,000. Hedge funds and other institutional investors own 40.52% of the company’s stock.

Alector Company Profile

Alector, Inc, a clinical stage biotechnology company, focuses on developing therapies that harness the immune system to cure neurodegenerative diseases. Its products in Phase I clinical trial include AL001, a humanized recombinant monoclonal antibody for the treatment of frontotemporal dementia; and AL002 for the treatment of Alzheimer's disease.

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