Alector (ALEC)
NASDAQ:ALEC
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Alector
(NASDAQ:ALEC)
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Rating:51Neutral
Price Target:
$2.50
▲(2.04% Upside)
Action:ReiteratedDate:04/02/26
Overall score is held back primarily by weak financial performance (persistent losses, significant recent revenue decline, and ongoing cash burn with a weaker 2025 balance sheet). Technicals are a relative strength with price above key moving averages and positive MACD. Valuation provides limited support due to negative earnings and no dividend yield provided.
Positive Factors
Focused immuno‑neurology pipeline
Alector’s emphasis on innate immune function and neuroinflammation targets core biology in high‑unmet‑need neurodegenerative diseases. This therapeutic specialization creates a durable strategic focus and potential competitive differentiation if clinical programs translate to validated mechanisms and approvals.
Negative Factors
Persistent cash burn and negative operating cash flow
Sustained negative operating and free cash flow forces reliance on external financing, increasing dilution and refinancing risk. Ongoing cash burn constrains ability to complete clinical programs independently and raises the chance of near‑term funding-driven delays or restructurings.
Read all positive and negative factors
Positive Factors
Negative Factors
Focused immuno‑neurology pipeline
Alector’s emphasis on innate immune function and neuroinflammation targets core biology in high‑unmet‑need neurodegenerative diseases. This therapeutic specialization creates a durable strategic focus and potential competitive differentiation if clinical programs translate to validated mechanisms and approvals.
Read all positive factors
Alector (ALEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$270.39M
Dividend YieldN/A
Average Volume (3M)795.60K
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth12.26%
EPS Growth37.36%
CountryUS
Employees175
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.34
Shares Outstanding110,362,580
10 Day Avg. Volume768,666
30 Day Avg. Volume795,604
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)5.24
Price to Sales (P/S)7.63
P/FCF Ratio-0.87
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue10.81
Enterprise Value/Gross Profit12.11
Enterprise Value/Ebitda-1.67
Forecast
1Y Price Target
$3.38Price Target Upside37.96% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.92
Revenue Forecast (FY)$36.77M
Alector Business Overview & Revenue Model
Company Description
Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, a humanized recombinant monoclonal antibody, which is in Phase III clinical trial for the tr...
How the Company Makes Money
Alector primarily generates revenue through collaboration and licensing arrangements rather than product sales, as it is a clinical-stage company and does not have commercialized therapies. These arrangements typically produce revenue from (1) upf...
Alector Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The earnings call presented several positive developments, including strong financial health, upcoming trial data, and completion of enrollment for a key program. However, significant challenges remain, such as regulatory hurdles and the complexity of diagnosing and treating FTD. The balance of promising advancements and existing challenges suggests a cautiously optimistic outlook.Positive Updates
Upcoming INFRONT-3 Trial Data
Alector is anticipating top-line data from their Phase III INFRONT-3 trial of latozinemab by mid-Q4 2025. This trial is pivotal as it targets frontotemporal dementia due to the GRN gene mutation, a rare form of dementia with no approved therapy.
Negative Updates
Regulatory Challenges
The FDA requested a change in the statistical analysis plan for the INFRONT-3 trial to include progranulin as a co-primary endpoint, which requires statistical significance on both co-primary endpoints for the study to be positive.
Read all updates
Q2-2025 Updates
Positive
Negative
Upcoming INFRONT-3 Trial Data
Alector is anticipating top-line data from their Phase III INFRONT-3 trial of latozinemab by mid-Q4 2025. This trial is pivotal as it targets frontotemporal dementia due to the GRN gene mutation, a rare form of dementia with no approved therapy.
Read all positive updates
Company Guidance
During the Alector Second Quarter and Midyear 2025 Earnings Conference Call, the company provided guidance on several key metrics. They reported a strong cash position of $307.3 million, which is expected to fund operations into the second half of 2027. For fiscal year 2025, Alector anticipates collaboration revenue to be between $13 million and $18 million, with total research and development expenses projected at $130 million to $140 million. General and administrative expenses are forecasted to range from $55 million to $65 million. The company is focused on advancing its late-stage clinical programs, particularly the Phase III INFRONT-3 trial for latozinemab, with pivotal data expected by mid-fourth quarter. They are also progressing the Phase II trial of AL101 for early Alzheimer's disease, with trial completion expected in 2026. Alector highlighted their proprietary technology platform, which supports their preclinical pipeline, including a brain-penetrant anti-amyloid beta antibody for Alzheimer's and an engineered GCase enzyme replacement therapy for Parkinson's disease.Alector Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.05M | 100.56M | 97.06M | 133.62M | 207.09M |
| Gross Profit | 11.38M | 100.56M | 88.21M | 133.62M | 17.68M |
| EBITDA | -133.10M | -136.16M | -142.89M | -129.36M | -29.05M |
| Net Income | -142.93M | -119.05M | -130.39M | -133.31M | -36.33M |
Balance Sheet | |||||
| Total Assets | 293.24M | 468.30M | 621.83M | 787.65M | 814.66M |
| Cash, Cash Equivalents and Short-Term Investments | 256.02M | 413.40M | 548.86M | 712.85M | 735.25M |
| Total Debt | 36.23M | 42.52M | 38.92M | 43.33M | 47.60M |
| Total Liabilities | 262.59M | 341.50M | 487.67M | 573.21M | 513.93M |
| Stockholders Equity | 30.65M | 126.80M | 134.16M | 214.44M | 300.72M |
Cash Flow | |||||
| Free Cash Flow | -184.07M | -231.16M | -186.54M | -24.45M | 295.30M |
| Operating Cash Flow | -184.03M | -229.91M | -184.16M | -20.33M | 298.55M |
| Investing Cash Flow | 196.60M | 107.13M | 101.92M | -159.01M | -49.66M |
| Financing Cash Flow | 20.21M | 81.54M | 2.55M | 4.51M | 30.30M |
Alector Technical Analysis
Positive
2.45
Price Trends
2.13
Positive
1.82
Positive
2.00
Positive
Market Momentum
0.09
Negative
59.71
Neutral
69.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALEC, the sentiment is Positive. The current price of 2.45 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.13, and above the 200-day MA of 2.00, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.71 is Neutral, neither overbought nor oversold. The STOCH value of 69.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALEC.
Alector Risk Analysis
Alector disclosed 79 risk factors in its most recent earnings report. Alector reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alector Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $270.39M | ― | -224.96% | ― | 12.26% | 37.36% | |
49 Neutral | $333.82M | -4.42 | -101.60% | ― | -89.01% | -86.17% | |
47 Neutral | $755.67M | -0.19 | 72.70% | ― | ― | -1072.48% | |
45 Neutral | $269.43M | -4.58 | 105.48% | ― | -3.91% | 37.89% | |
44 Neutral | $371.36M | -1.23 | -113.81% | ― | ― | 20.71% |
* Healthcare Sector Average
ALEC
Alector
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137.76%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.