Alector (NASDAQ:ALEC) Rating Lowered to Underweight at Morgan Stanley

Alector (NASDAQ:ALEC) was downgraded by equities research analysts at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a note issued to investors on Tuesday, Marketbeat Ratings reports. They currently have a $3.00 price target on the stock, down from their previous price target of $10.00. Morgan Stanley’s price objective suggests a potential upside of 17.88% from the company’s previous close.

Several other equities analysts have also weighed in on ALEC. Cantor Fitzgerald reiterated an “overweight” rating on shares of Alector in a report on Tuesday, September 17th. HC Wainwright reissued a “buy” rating and issued a $35.00 price target on shares of Alector in a research note on Thursday, November 7th. One research analyst has rated the stock with a sell rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $14.00.

Alector Stock Performance

ALEC opened at $2.55 on Tuesday. Alector has a twelve month low of $2.37 and a twelve month high of $8.90. The firm’s 50-day moving average price is $4.81 and its 200 day moving average price is $5.04.

Alector (NASDAQ:ALEC) last posted its quarterly earnings results on Wednesday, November 6th. The company reported ($0.43) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.53) by $0.10. The firm had revenue of $15.34 million for the quarter, compared to analyst estimates of $16.33 million. Alector had a negative net margin of 257.54% and a negative return on equity of 108.77%. As a group, sell-side analysts predict that Alector will post -1.87 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Arnon Rosenthal sold 26,499 shares of the company’s stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $4.88, for a total value of $129,315.12. Following the completion of the transaction, the chief executive officer now owns 1,948,746 shares in the company, valued at approximately $9,509,880.48. This represents a 1.34 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Marc Grasso sold 7,297 shares of the company’s stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $4.88, for a total transaction of $35,609.36. Following the completion of the transaction, the chief financial officer now owns 130,740 shares of the company’s stock, valued at approximately $638,011.20. The trade was a 5.29 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 47,722 shares of company stock valued at $232,883 in the last ninety days. Company insiders own 9.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in shares of Alector by 12.0% during the 1st quarter. Vanguard Group Inc. now owns 4,912,578 shares of the company’s stock worth $29,574,000 after purchasing an additional 526,037 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its position in shares of Alector by 18.5% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,017,687 shares of the company’s stock valued at $4,742,000 after acquiring an additional 159,111 shares during the period. Geode Capital Management LLC boosted its stake in shares of Alector by 8.5% during the 3rd quarter. Geode Capital Management LLC now owns 1,903,942 shares of the company’s stock worth $8,874,000 after acquiring an additional 148,357 shares in the last quarter. Acadian Asset Management LLC increased its stake in Alector by 32.8% in the 2nd quarter. Acadian Asset Management LLC now owns 590,662 shares of the company’s stock valued at $2,681,000 after purchasing an additional 146,015 shares in the last quarter. Finally, FMR LLC boosted its position in Alector by 1.0% during the third quarter. FMR LLC now owns 14,595,014 shares of the company’s stock worth $68,013,000 after purchasing an additional 137,794 shares in the last quarter. 85.83% of the stock is currently owned by institutional investors and hedge funds.

About Alector

Alector, Inc, a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, an immune activity in the brain with genetic links to multiple neurodegenerative disorders, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases.