Allakos Inc. (NASDAQ:ALLK) has received a “Moderate Buy” recommendation from five brokerages currently covering the firm, according to Bloomberg. Out of the five research analysts, one analyst has given a hold rating and four have issued a buy rating on the company’s stock. The average 1-year target price among these brokers, who have provided ratings on the stock in the past year, stands at $13.60.
In recent times, hedge funds have shown interest in Allakos Inc., both buying and selling shares of the company. Royal Bank of Canada witnessed an astounding growth in its stake in Allakos by 91,137.5% during the second quarter. As a result, they now own 7,299 shares of the company’s stock with an approximate value of $32,000 after acquiring an additional 7,291 shares in the last quarter. Schonfeld Strategic Advisors LLC also joined in by purchasing a new position in Allakos during the fourth quarter with an estimated value of around $87,000. Inceptionr LLC similarly purchased its position worth approximately $49,000 during the second quarter. Furthermore, Boothbay Fund Management LLC invested around $97,000 to acquire shares of Allakos during the fourth quarter. Lastly, Boulder Hill Capital Management LP made a purchase worth approximately $52,000 during the first quarter. It is important to note that hedge funds and other institutional investors collectively own a significant portion of Allakos’ stock – approximately 84.64% to be precise.
Allakos Inc., being a clinical stage biopharmaceutical company, has been actively involved in developing therapeutics that specifically target immunomodulatory receptors found on immune effector cells relating to allergy-related diseases such as inflammation and proliferation disorders. Leading their product portfolio is lirentelimab (AK002), which is presently undergoing Phase III studies for the treatment of eosinophilic gastritis and/or eosinophilic duodenitis. Additionally, it is also being evaluated in a Phase II/III study for eosinophilic esophagitis and a Phase II clinical study for atopic dermatitis and chronic spontaneous urticaria.
These recent developments surrounding Allakos Inc. highlight its growing prominence in the biopharmaceutical industry as it strives to advance novel solutions to address various immunomodulatory disorders effectively. Investors will undoubtedly be keeping a close eye on the progress of Allakos’ clinical trials, as well as the consensus of broker recommendations, to make informed decisions regarding their investment strategies.
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Allakos Receives Market Outperform Rating from JMP Securities and Sets $11.00 Price Target, Indicating Potential Growth
September 27, 2023 – Allakos (NASDAQ:ALLK), a biotechnology company specializing in the development of innovative antibody-based therapeutics, has recently gained attention from analysts at JMP Securities. In their latest research report, JMP Securities initiated coverage on Allakos and assigned a “market outperform” rating on the stock along with a price target of $11.00.
This news comes as a significant development for Allakos, as it highlights the growing interest and confidence among industry experts regarding the company’s potential growth and future prospects. The endorsement from an established financial institution like JMP Securities adds credibility to Allakos’ position in the market.
Allakos’ stock opened at $2.16 on Wednesday, displaying a lower trading value compared to previous periods. However, it is important to note that stocks can be subject to fluctuations, influenced by various factors inherent in the dynamic nature of financial markets.
Analyzing the firm’s performance over recent months reveals its 50-day simple moving average stands at $3.58 while its two-hundred day simple moving average rests at $4.23. These figures indicate some level of volatility and uncertainty surrounding Allakos’ stock valuation.
The company has experienced both highs and lows throughout its existence, with a 52-week low of $2.02 and a 52-week high of $8.73 recorded during different periods within the last year. Such drastic fluctuations suggest that investors should approach this stock with caution and consider their risk appetite before making any investment decisions.
Under scrutiny are also key financial metrics that provide insights into Allakos’ financial health. The biotech firm currently boasts a market capitalization of $187.75 million, demonstrating its relative standing within the industry.
Additionally, Allakos holds a negative price-to-earnings ratio (P/E) of -1.12. This indicates that the company’s earnings are currently negative, which could raise concerns among potential investors. However, given the nature of Allakos’ industry and its focus on research and development, it is not uncommon for biotechnology companies to operate at a loss in the early stages as they invest heavily in their pipeline.
Allakos last reported its quarterly earnings results on Wednesday, August 9th. In this report, the company outperformed market expectations by reporting earnings per share (EPS) of ($0.41), surpassing the consensus estimate of ($0.49) by $0.08. This achievement highlights Allakos’ ability to generate positive results despite operating challenges.
Analysts forecast that Allakos will post -1.81 earnings per share for the current year, emphasizing the importance of closely monitoring the company’s performance moving forward.
In conclusion, JMP Securities’ coverage initiation and favorable rating on Allakos represents a significant milestone for the biotech firm. While the stock has faced volatility and uncertainty in recent times, Allakos’ ability to exceed earnings expectations and its ongoing commitment to groundbreaking therapeutics positions it as a player worth observing.
Investors should exercise due diligence when considering investments in biotechnology companies due to their inherent risks and fluctuations. With an understanding of these dynamics in mind, diligent monitoring of Allakos’ financial performance and maintaining awareness of market trends can facilitate informed decision-making in this ever-evolving sector.
