The Week Ahead: Are Investors Really Too Optimistic About Alector Inc (NASDAQ: ALEC)

Alector Inc (NASDAQ:ALEC) currently has a daily average trading volume of 761.30K but it saw 753952 shares traded in last market. With a market cap of 103.99M USD, the company’s current market price of $1.04 came rising about 1.96 while comparing to the previous closing price of $1.02. In past 52 weeks, the stock remained buoying in the range of price level as high as $6.78 and as low as $0.87.

Taking a look at 20-day trading activity of Alector Inc (ALEC) gives us an average price of $1.0828, while its current price level is -84.66% below from 52-week high level whereas it is 19.54% above from lowest level seen by the stock during that period. Simple moving average of 50 days or SMA-50 of the stock’s closing price is $1.2285 while that of 200 days or SMA-200 reads an average of $3.1612. A closer look into the stock’s movement over the week reveals that its volatility is standing at 9.22% during that period while stretching the period over a month that increases to 9.78%. It is also necessary to take a look into other indicators of a stock too, to get a better idea about its price movement. And in doing so, we find stock’s 14-day relative strength index (RSI) standing at 43.24 which implies that the stock is in neutral territory.

The company’s shares got several price updates from the analyst firms in past one month and most recent of them is from the Mizuho which downgraded the stock as “Neutral” in its note to investors issued on December 17, 2024, recommending a price target of between $9 and $2.50 for it. Stifel downgraded its recommendation for the stock as a “Hold” from “Buy” on December 16, 2024 while assigning a price target of $4. BofA Securities also issued its recommendations for the stock as it downgraded the price target for the stock in the range of between $9 and $1.

Over the week, ALEC’s stock price is moving -14.75% down while it is 10.37% when we observe its performance for the past one month. Year-to-date it is -44.97% down and over the past year, the stock is showing a downside performance of -80.45%.

Currently, Alector Inc’s total number of outstanding shares is 99.09M with 9.88% of that held by the insiders while 80.86% of its common stock has been owned by the institutions. Company’s return on investment (ROI) stands at -74.14% and return on equity (ROE) at -91.24%. Stock’s beta reads 0.66. Stock has a price to book (P/B) ratio of 0.81 while price to sale or P/S ratio amounts to 1.03. Its return on asset (ROA) is -21.84% on average.