Alector Stock Buy Hold or Sell Recommendation
| ALEC Stock | USD 2.59 0.04 1.57% |
Given the investment horizon of 90 days and your below-average risk tolerance, our recommendation regarding Alector is 'Strong Sell'. Macroaxis provides Alector buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Alector positions.
Check out Alector Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Alector Stock refer to our How to Trade Alector Stock guide. In addition, we conduct extensive research on individual companies such as Alector and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Alector. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.
Alector |
Execute Alector Buy or Sell Advice
The Alector recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Alector. Macroaxis does not own or have any residual interests in Alector or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Alector's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Risky | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Alector Trading Alerts and Improvement Suggestions
| Alector generated a negative expected return over the last 90 days | |
| Alector has high historical volatility and very poor performance | |
| The company reported the previous year's revenue of 97.06 M. Net Loss for the year was (130.39 M) with loss before overhead, payroll, taxes, and interest of (76.8 M). | |
| Alector currently holds about 808.85 M in cash with (184.16 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.8, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Alector has a frail financial position based on the latest SEC disclosures | |
| Over 86.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: ALEC Stock Tanks as Alzheimers Drug Fails in Mid-Stage Study |
Alector Returns Distribution Density
The distribution of Alector's historical returns is an attempt to chart the uncertainty of Alector's future price movements. The chart of the probability distribution of Alector daily returns describes the distribution of returns around its average expected value. We use Alector price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Alector returns is essential to provide solid investment advice for Alector.
| Mean Return | -0.79 | Value At Risk | -8.42 | Potential Upside | 8.66 | Standard Deviation | 6.86 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Alector historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Alector Stock Institutional Investors
| Shares | Euclidean Capital Llc | 2024-09-30 | 1.3 M | Deerfield Management Co | 2024-09-30 | 1.1 M | Jacobs Levy Equity Management, Inc. | 2024-09-30 | 1 M | Franklin Resources Inc | 2024-09-30 | 963.5 K | Baker Bros Advisors Lp | 2024-09-30 | 927.3 K | Dafna Capital Management Llc | 2024-09-30 | 912.9 K | T. Rowe Price Associates, Inc. | 2024-06-30 | 869.6 K | Alliancebernstein L.p. | 2024-06-30 | 767 K | Charles Schwab Investment Management Inc | 2024-09-30 | 760.6 K | Fmr Inc | 2024-09-30 | 14.6 M | Blackrock Inc | 2024-06-30 | 9.1 M |
Alector Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 6.6M | 2.4M | 7.4M | (4.8M) | (2.6M) | (2.5M) | |
| Investments | (33.6M) | (100.0M) | (46.4M) | (159.0M) | 102.2M | 107.3M | |
| Change In Cash | 24.2M | (39.7M) | 279.2M | (174.8M) | (79.7M) | (75.7M) | |
| Free Cash Flow | (114.6M) | (171.8M) | 295.3M | (24.4M) | (186.5M) | (177.2M) | |
| Depreciation | 5.6M | 7.3M | 8.3M | 8.5M | 8.8M | 5.6M | |
| Capital Expenditures | 15.3M | 5.0M | 3.2M | 4.1M | 2.4M | 2.3M | |
| Net Income | (105.4M) | (190.2M) | (36.3M) | (133.3M) | (130.4M) | (136.9M) | |
| End Period Cash Flow | 91.1M | 51.4M | 330.6M | 155.8M | 76.1M | 117.6M | |
| Change To Netincome | 16.3M | 30.6M | 40.8M | 45.0M | 51.7M | 54.3M | |
| Other Non Cash Items | (3.5M) | 929K | 2.1M | (1.2M) | (15.3M) | (16.0M) |
Alector Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Alector or Biotechnology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Alector's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Alector stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -1.17 | |
β | Beta against Dow Jones | 2.92 | |
σ | Overall volatility | 6.85 | |
Ir | Information ratio | -0.14 |
Alector Volatility Alert
Alector is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alector's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alector's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Alector Fundamentals Vs Peers
Comparing Alector's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Alector's direct or indirect competition across all of the common fundamentals between Alector and the related equities. This way, we can detect undervalued stocks with similar characteristics as Alector or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Alector's fundamental indicators could also be used in its relative valuation, which is a method of valuing Alector by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Alector to competition |
| Fundamentals | Alector | Peer Average |
| Return On Equity | -1.13 | -0.31 |
| Return On Asset | -0.19 | -0.14 |
| Profit Margin | (2.58) % | (1.27) % |
| Operating Margin | (3.01) % | (5.51) % |
| Current Valuation | (168.92 M) | 16.62 B |
| Shares Outstanding | 97.93 M | 571.82 M |
| Shares Owned By Insiders | 10.08 % | 10.09 % |
| Shares Owned By Institutions | 86.07 % | 39.21 % |
| Number Of Shares Shorted | 4.02 M | 4.71 M |
| Price To Earning | 21.35 X | 28.72 X |
| Price To Book | 2.13 X | 9.51 X |
| Price To Sales | 4.12 X | 11.42 X |
| Revenue | 97.06 M | 9.43 B |
| Gross Profit | (76.8 M) | 27.38 B |
| EBITDA | (142.89 M) | 3.9 B |
| Net Income | (130.39 M) | 570.98 M |
| Cash And Equivalents | 808.85 M | 2.7 B |
| Cash Per Share | 9.80 X | 5.01 X |
| Total Debt | 38.92 M | 5.32 B |
| Debt To Equity | 0.16 % | 48.70 % |
| Current Ratio | 5.53 X | 2.16 X |
| Book Value Per Share | 1.21 X | 1.93 K |
| Cash Flow From Operations | (184.16 M) | 971.22 M |
| Short Ratio | 6.55 X | 4.00 X |
| Earnings Per Share | (1.71) X | 3.12 X |
| Price To Earnings To Growth | 0.45 X | 4.89 X |
| Target Price | 10.28 | |
| Number Of Employees | 241 | 18.84 K |
| Beta | 0.66 | -0.15 |
| Market Capitalization | 253.65 M | 19.03 B |
| Total Asset | 621.83 M | 29.47 B |
| Retained Earnings | (710.08 M) | 9.33 B |
| Working Capital | 387.86 M | 1.48 B |
Note: Disposition of 15186 shares by Arnon Rosenthal of Alector at 6.2181 subject to Rule 16b-3 [view details]
Alector Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Alector . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Alector Buy or Sell Advice
When is the right time to buy or sell Alector? Buying financial instruments such as Alector Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Alector in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Alector Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Alector Stock refer to our How to Trade Alector Stock guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alector. If investors know Alector will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alector listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.86) | Earnings Share (1.71) | Revenue Per Share 0.661 | Quarterly Revenue Growth 0.684 | Return On Assets (0.19) |
The market value of Alector is measured differently than its book value, which is the value of Alector that is recorded on the company's balance sheet. Investors also form their own opinion of Alector's value that differs from its market value or its book value, called intrinsic value, which is Alector's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alector's market value can be influenced by many factors that don't directly affect Alector's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alector's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alector is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alector's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.