In a recent filing with the Securities and Exchange Commission, Alector, Inc. (NASDAQ:ALEC) disclosed that its Chief Medical (TASE:PMCN) Officer, Gary Romano, sold 14,892 shares of common stock. 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 currently appears undervalued based on its Fair Value metrics. The shares were sold on December 2, 2024, at an average price of $2.5194, amounting to a total transaction value of approximately $37,518. Following this transaction, Romano holds 349,283 shares directly. The sale was conducted to satisfy tax obligations related to the vesting of restricted stock units. While the company maintains a healthy current ratio of 3.29 and holds more cash than debt, InvestingPro subscribers can access 15 additional key insights about Alector's financial health and insider trading patterns through the comprehensive Pro Research Report.
In other recent news, Alector Inc (NASDAQ:ALEC). faced a setback as its Phase 2 INVOKE-2 trial for the Alzheimer's disease treatment AL002 failed to meet its primary endpoint, leading to the discontinuation of the program. Despite this, H.C. Wainwright maintains a Buy rating for the company, albeit with a reduced price target of $7, down from $35. Goldman Sachs (NYSE:GS), however, reaffirmed its Sell rating with a price target of $4. Morgan Stanley (NYSE:MS) downgraded Alector's stock from Equalweight to Underweight with a revised price target of $3.
In response to the trial results, Alector plans to reduce its workforce by about 17% and shift its focus to other therapies aimed at neurodegenerative diseases. The company has also secured a $50 million credit facility from Hercules Capital (NYSE:HTGC) Inc. to support ongoing research and development efforts.
Investors are now looking ahead to the next major milestone for Alector, which is the Phase 3 INFRONT3 data expected to be released in late 2025 to early 2026. The outcome of this future study could be critical for the company's prospects. 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 among the recent developments shaping the course of Alector Inc.
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