Arnon Rosenthal, the Chief Executive Officer of Alector, Inc. (NASDAQ:ALEC), recently reported the sale of 52,172 shares of the company's common stock, totaling approximately $131,442. The sale occurred on December 2, 2024, with shares sold at a weighted average price of $2.5194. The transaction comes as the stock trades near its 52-week low of $2.37, having declined over 50% in the past six months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
Following the transaction, Rosenthal holds 2,507,074 shares directly. Additionally, he has indirect ownership of shares through various trusts, including The Rosenthal Family Revocable Trust and the Adi, Noam, and Shani Rosenthal 2007 Trusts, for which he serves as trustee.
The sale was conducted to cover tax obligations related to the vesting of restricted stock units, as noted in the filing.
In other recent news, Alector Inc (NASDAQ:ALEC). faced significant developments. The company's Phase 2 INVOKE-2 trial for Alzheimer's treatment AL002 failed to meet its primary endpoint, leading to the discontinuation of the program. However, Alector Inc. remains committed to its other programs, with the Phase 3 INFRONT3 data expected to be released in late 2025 to early 2026. In response to the trial's outcome, Morgan Stanley (NYSE:MS) downgraded Alector's stock from Equalweight to Underweight, with a revised price target of $3.00. Conversely, H.C. Wainwright maintains a Buy rating for the company, albeit with a reduced price target of $7, while Goldman Sachs (NYSE:GS) reaffirmed its Sell rating with a price target of $4.
Alector Inc. also secured a $50 million credit facility from Hercules Capital (NYSE:HTGC) Inc., aimed at supporting ongoing research and development efforts. The company continues to advance its PGRN program and five early-stage programs based on their ABC transport technology. Shareholders elected Louis J. Lavigne, Jr., Richard H. Scheller, Ph.D., and Mark Altmeyer as Class III directors, while Ernst & Young LLP was ratified as the independent accounting firm. As of September 30, 2024, Alector reported having $457.2 million in cash, cash equivalents, and investments, projecting a financial runway through 2026. These are some of the recent developments shaping Alector Inc.'s course.
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