Sara Kenkare-Mitra, the President and Head of Research and Development at Alector, Inc. (NASDAQ:ALEC), sold 26,500 shares of the company's common stock on December 2. The clinical-stage biopharmaceutical company, currently valued at $246 million, has seen its stock decline nearly 69% year-to-date, with InvestingPro analysis indicating the shares are trading in oversold territory. The shares were sold at an average price of $2.5194, amounting to a total transaction value of approximately $66,764. Following the sale, Kenkare-Mitra retains ownership of 565,215 shares. The sale was conducted to satisfy tax obligations related to the vesting of restricted stock units. While the company maintains a healthy liquidity position with a current ratio of 3.29, InvestingPro data reveals the company is quickly burning through cash. Investors seeking detailed analysis can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering this and 1,400+ other US stocks.
In other recent news, Alector Inc (NASDAQ:ALEC). has faced significant developments. The company's AL002 Phase 2 INVOKE-2 study did not yield positive results, leading to the discontinuation of the program. This setback prompted Morgan Stanley (NYSE:MS) to downgrade Alector's stock from Equalweight to Underweight and revise its price target to $3.00. Despite this, H.C. Wainwright maintains a Buy rating for Alector, albeit with a reduced price target of $7. Goldman Sachs also reaffirmed its Sell rating with a price target of $4.
Alector has secured a $50 million credit facility from Hercules Capital (NYSE:HTGC) Inc., aimed at supporting ongoing research and development efforts. The company continues to focus on its other programs, including the PGRN program and five early-stage programs based on their ABC transport technology.
The company reported having $457.2 million in cash, cash equivalents, and investments as of September 30, 2024, projecting a financial runway through 2026. Furthermore, 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. These are among the recent developments shaping Alector Inc.'s course.
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