Alector (NASDAQ:ALEC) Shares Cross Above 200 Day Moving Average – Time to Sell?

Alector, Inc. (NASDAQ:ALEC) shares passed above its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $2.02 and traded as high as $2.12. Alector shares last traded at $2.10, with a volume of 4,568,092 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms recently commented on ALEC. Weiss Ratings raised shares of Alector from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, August 13th. UBS Group reiterated a “neutral” rating and set a $1.50 target price on shares of Alector in a report on Tuesday, October 6th. Morgan Stanley lifted their price target on Alector from $2.00 to $3.00 and gave the company an “underweight” rating in a research note on Tuesday, October 6th. Finally, HC Wainwright lifted their price target on Alector from $5.00 to $8.00 and gave the company a “buy” rating in a research note on Wednesday, October 14th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Alector has an average rating of “Hold” and an average price target of $4.62.

Alector Stock Down 0.4%

The firm’s 50 day simple moving average is $2.09 and its 200-day simple moving average is $2.02. The company has a current ratio of 5.26, a quick ratio of 5.26 and a debt-to-equity ratio of 0.80. The stock has a market capitalization of $250.12 million, a price-to-earnings ratio of -2.04 and a beta of 0.62.

Alector (NASDAQ:ALEC) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.21) EPS for the quarter, topping analysts’ consensus estimates of ($0.23) by $0.02. Alector had a negative net margin of 850.13% and a negative return on equity of 531.03%. The company had revenue of $3.32 million during the quarter, compared to the consensus estimate of $1.71 million. Equities analysts expect that Alector, Inc. will post -0.47 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Arnon Rosenthal sold 72,606 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $2.66, for a total value of $193,131.96. Following the completion of the sale, the chief executive officer owned 2,294,600 shares of the company’s stock, valued at approximately $6,103,636. This represents a 3.07% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Neil Berkley sold 29,251 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $2.66, for a total transaction of $77,807.66. Following the completion of the transaction, the chief financial officer directly owned 350,649 shares of the company’s stock, valued at $932,726.34. This represents a 7.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 111,303 shares of company stock valued at $295,633. Corporate insiders own 8.30% of the company’s stock.

Institutional Trading of Alector

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALEC. BlackRock Inc. acquired a new position in shares of Alector during the 2nd quarter worth approximately $15,774,000. Nantahala Capital Management LLC acquired a new stake in Alector during the 2nd quarter valued at $8,679,399. Merck & Co. Inc. acquired a new stake in Alector during the 2nd quarter valued at $7,126,896. ADAR1 Capital Management LLC bought a new position in Alector during the second quarter worth $5,796,000. Finally, Spruce Street Capital LP boosted its position in Alector by 87.9% during the first quarter. Spruce Street Capital LP now owns 2,101,068 shares of the company’s stock worth $4,517,000 after purchasing an additional 983,082 shares during the period. 85.83% of the stock is owned by institutional investors.

Alector Company Profile

Alector, Inc (NASDAQ: ALEC) is a clinical-stage biotechnology company focused on developing therapies for neurodegenerative diseases. The company’s research platform, known as immuno-neurology, is designed to use the body’s immune system to protect or restore the brain’s ability to maintain healthy neural connections.

Alector’s investigational pipeline has included antibody-based treatments for conditions such as frontotemporal dementia and Alzheimer’s disease. Its programs have targeted biological pathways associated with neurodegeneration, including progranulin and TREM2.