Alector (NASDAQ:ALEC) Trading Up 4.8% – Should You Buy?

Alector, Inc. (NASDAQ:ALEC) shot up 4.8% on Monday . The company traded as high as $1.53 and last traded at $1.52. 1,576,232 shares changed hands during mid-day trading, an increase of 2% from the average session volume of 1,544,493 shares. The stock had previously closed at $1.45.

Analysts Set New Price Targets

Several research firms recently issued reports on ALEC. Wall Street Zen lowered Alector from a “hold” rating to a “sell” rating in a research note on Friday, November 28th. Mizuho set a $1.50 price target on shares of Alector and gave the stock a “neutral” rating in a research note on Wednesday, October 22nd. Cantor Fitzgerald lowered shares of Alector from an “overweight” rating to a “neutral” rating in a research note on Wednesday, October 22nd. Cowen cut shares of Alector to a “hold” rating in a report on Wednesday, October 22nd. Finally, TD Cowen downgraded shares of Alector from a “buy” rating to a “hold” rating in a research note on Wednesday, October 22nd. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $3.25.

Alector Trading Up 4.8%

The company’s fifty day moving average is $1.39 and its two-hundred day moving average is $1.94. The company has a quick ratio of 3.76, a current ratio of 3.76 and a debt-to-equity ratio of 0.17. The stock has a market cap of $165.91 million, a price-to-earnings ratio of -1.42 and a beta of 0.67.

Alector (NASDAQ:ALEC) last announced its quarterly earnings data on Thursday, November 6th. The company reported ($0.34) EPS for the quarter, beating analysts’ consensus estimates of ($0.42) by $0.08. Alector had a negative net margin of 156.03% and a negative return on equity of 123.02%. The company had revenue of $3.26 million for the quarter, compared to the consensus estimate of $3.49 million. On average, research analysts predict that Alector, Inc. will post -1.88 EPS for the current fiscal year.

Insider Activity at Alector

In other news, insider Sara Kenkare-Mitra sold 41,687 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The stock was sold at an average price of $1.12, for a total transaction of $46,689.44. Following the completion of the transaction, the insider directly owned 501,652 shares of the company’s stock, valued at approximately $561,850.24. This represents a 7.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Neil Lindsay Berkley sold 37,261 shares of the stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $1.12, for a total value of $41,732.32. Following the completion of the transaction, the chief financial officer owned 374,309 shares in the company, valued at approximately $419,226.08. The trade was a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 196,104 shares of company stock valued at $220,064 over the last quarter. 9.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Alector

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Lexington Partners L.P. acquired a new stake in Alector during the third quarter worth approximately $30,000. Pinegrove Venture Partners LLC acquired a new position in shares of Alector in the 3rd quarter valued at $30,000. Belvedere Trading LLC purchased a new position in shares of Alector in the 3rd quarter valued at $31,000. HBK Sorce Advisory LLC acquired a new stake in Alector during the 3rd quarter worth $34,000. Finally, Savant Capital LLC acquired a new stake in Alector during the 3rd quarter worth $35,000. 85.83% of the stock is owned by institutional investors and hedge funds.

About Alector

Alector is a clinical-stage biotechnology company headquartered in South San Francisco, California. Founded in 2013, the company is focused on discovering and developing immuno-neurology therapies that target the innate immune system to treat a range of neurodegenerative disorders. Alector’s approach aims to harness the body’s natural defense mechanisms to clear pathological proteins and restore neuronal function in conditions such as Alzheimer’s disease and frontotemporal dementia.

The company’s pipeline includes multiple product candidates in both preclinical and clinical stages, with lead programs AL001 and AL002 advancing in frontotemporal dementia and Alzheimer’s disease studies.