Short Interest in Alector, Inc. (NASDAQ:ALEC) Expands By 35.9%

Alector, Inc. (NASDAQ:ALEC) was the target of a significant growth in short interest in December. As of December 15th, there was short interest totaling 6,319,929 shares, a growth of 35.9% from the November 30th total of 4,651,197 shares. Based on an average daily volume of 1,976,117 shares, the short-interest ratio is presently 3.2 days. Approximately 6.4% of the shares of the company are sold short. Approximately 6.4% of the shares of the company are sold short. Based on an average daily volume of 1,976,117 shares, the short-interest ratio is presently 3.2 days.

Insider Activity

In related news, CEO Arnon Rosenthal sold 104,347 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 value of $116,868.64. Following the completion of the sale, the chief executive officer directly owned 2,420,040 shares of the company’s stock, valued at $2,710,444.80. This represents a 4.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Neil Lindsay Berkley sold 37,261 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $1.12, for a total value of $41,732.32. Following the transaction, the chief financial officer owned 374,309 shares in the company, valued at $419,226.08. This represents a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 196,104 shares of company stock valued at $220,064. Insiders own 9.70% of the company’s stock.

Institutional Trading of Alector

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

Alector Stock Up 4.8%

Alector stock opened at $1.52 on Tuesday. The stock’s 50 day moving average price is $1.39 and its 200 day moving average price is $1.94. Alector has a 1-year low of $0.87 and a 1-year high of $3.40. The company has a market cap of $165.91 million, a PE ratio of -1.42 and a beta of 0.67. The company has a debt-to-equity ratio of 0.17, a current ratio of 3.76 and a quick ratio of 3.76.

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

Analyst Upgrades and Downgrades

A number of research analysts have commented on ALEC shares. Cowen lowered shares of Alector to a “hold” rating in a research note on Wednesday, October 22nd. Wall Street Zen downgraded Alector from a “hold” rating to a “sell” rating in a research note on Friday, November 28th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Alector in a research note on Wednesday, October 8th. TD Cowen lowered Alector from a “buy” rating to a “hold” rating in a report on Wednesday, October 22nd. Finally, HC Wainwright decreased their price target on Alector from $10.00 to $5.00 and set a “buy” rating for the company in a report on Wednesday, October 22nd. One investment analyst has rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $3.25.

Alector Company Profile

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.