Alkermes (NASDAQ:ALKS) Trading Down 6.7% on Disappointing Earnings

Alkermes plc (NASDAQ:ALKS)’s share price was down 6.7% on Wednesday following a dissappointing earnings announcement. The stock traded as low as $30.54 and last traded at $31.1550. Approximately 670,308 shares were traded during mid-day trading, a decline of 65% from the average daily volume of 1,940,193 shares. The stock had previously closed at $33.39.

The company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.14). Alkermes had a net margin of 22.27% and a return on equity of 21.81%. The firm had revenue of $384.55 million during the quarter, compared to analysts’ expectations of $380.44 million. During the same quarter in the prior year, the firm posted $1.05 EPS. Alkermes’s quarterly revenue was down 10.6% compared to the same quarter last year. Alkermes has set its FY 2026 guidance at -0.798–0.680 EPS.

Key Alkermes News

Here are the key news stories impacting Alkermes this week:

• Positive Sentiment: Wolfe Research initiated coverage with an “Outperform” rating and a $45 price target, signaling institutional bullishness and significant upside vs. the current level. Wolfe Research Initiation
• Positive Sentiment: Cited coverage from Zacks highlighted Q4 results as topping some estimates (Zacks reported EPS of $0.46 vs. a $0.43 consensus in one story), which some outlets framed as a beat on the quarter. Zacks: Q4 Earnings Top Estimates
• Neutral Sentiment: Management announced a CEO succession plan (current COO Blair Jackson to become CEO Aug. 1, 2026), a governance/leadership change that appears orderly but is likely neutral near term. CEO Succession Plan
• Neutral Sentiment: Alkermes is presenting at industry conferences and recently closed the Avadel acquisition integration is being noted by analysts — these are operational items investors will monitor for cadence and synergy updates. Avadel Acquisition Note
• Neutral Sentiment: Short‑interest data in public feeds showed an anomalous “0 shares / NaN change” print for February — treat those numbers as unreliable until exchanges update official figures. (Data issue flagged by multiple feeds.)
• Negative Sentiment: Management issued very weak FY‑2026 EPS guidance of -0.798 to -0.680 vs. the Street’s prior consensus near +1.63 — this large downward earnings revision is the primary negative driver for the stock today. Q4 Results & FY‑2026 Guidance
• Negative Sentiment: Company‑reported Q4 results were viewed as mixed to weak by some outlets: revenue roughly in line (~$384.6M) but revenue down year‑over‑year and several reports show EPS materially below last year’s levels — reinforcing concerns about near‑term profitability. MarketBeat: Q4 Results & Call

Wall Street Analyst Weigh In

ALKS has been the topic of a number of research reports. Weiss Ratings reiterated a “hold (c+)” rating on shares of Alkermes in a report on Monday, December 29th. Wolfe Research began coverage on Alkermes in a research note on Monday. They issued an “outperform” rating and a $45.00 price objective on the stock. Wells Fargo & Company lowered their target price on Alkermes from $42.00 to $37.00 and set an “overweight” rating for the company in a research note on Thursday, November 13th. Wall Street Zen lowered Alkermes from a “strong-buy” rating to a “buy” rating in a research report on Sunday, November 9th. Finally, Truist Financial lifted their price objective on Alkermes from $50.00 to $55.00 and gave the company a “buy” rating in a research note on Monday, November 17th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $44.00.

Insider Activity

In other Alkermes news, EVP Craig C. Hopkinson sold 9,000 shares of the stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $33.93, for a total value of $305,370.00. Following the transaction, the executive vice president directly owned 57,740 shares in the company, valued at $1,959,118.20. This represents a 13.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Shane Cooke sold 61,200 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $34.57, for a total transaction of $2,115,684.00. Following the sale, the director directly owned 103,744 shares in the company, valued at approximately $3,586,430.08. The trade was a 37.10% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 148,148 shares of company stock valued at $5,028,378. Insiders own 4.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Baker BROS. Advisors LP lifted its position in Alkermes by 23.7% in the fourth quarter. Baker BROS. Advisors LP now owns 10,012,267 shares of the company’s stock valued at $280,143,000 after acquiring an additional 1,920,916 shares during the last quarter. State Street Corp grew its holdings in shares of Alkermes by 10.9% during the fourth quarter. State Street Corp now owns 9,472,858 shares of the company’s stock worth $265,051,000 after purchasing an additional 932,507 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of Alkermes by 6.0% during the fourth quarter. Renaissance Technologies LLC now owns 6,668,028 shares of the company’s stock worth $186,571,000 after purchasing an additional 375,500 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Alkermes by 32.0% in the 4th quarter. JPMorgan Chase & Co. now owns 5,184,547 shares of the company’s stock valued at $145,064,000 after purchasing an additional 1,256,377 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of Alkermes by 19.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 4,412,783 shares of the company’s stock valued at $123,467,000 after purchasing an additional 714,787 shares during the period. 95.21% of the stock is owned by hedge funds and other institutional investors.

Alkermes Trading Down 7.0%

The stock has a market cap of $5.13 billion, a PE ratio of 15.37 and a beta of 0.49. The business has a 50 day moving average of $31.44 and a 200-day moving average of $30.17.

About Alkermes

Alkermes plc is a biopharmaceutical company focused on developing innovative medicines to address unmet needs in the central nervous system (CNS). The company applies its proprietary drug delivery technologies and therapeutic expertise to advance treatments for addiction, schizophrenia, bipolar I disorder and depression. Alkermes’ portfolio includes both commercial products and a pipeline of investigational therapies designed to improve patient outcomes and support long-term disease management.

Alkermes’ commercial franchise features several approved products.