Alector (ALEC) AI Stock Analysis

• Market Cap: $146.26M
• Dividend Yield: N/A
• Average Volume (3M): 4.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: 12.26%
• EPS Growth: 37.36%
• Country: US
• Employees: 175
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.34
• Shares Outstanding: 109,151,474
• 10 Day Avg. Volume: 2,731,930
• 30 Day Avg. Volume: 4,007,200
• PEG Ratio: 0.07
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.82
• P/FCF Ratio: -0.79
• Enterprise Value/Market Cap: 0.34
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: -0.45
• 1Y Price Target: $2.25
• Price Target Upside: 67.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): -1.47
• Revenue Forecast (FY): $17.15M

• Rating: 45 Neutral
• Price Target: $1.50 ▲(11.94% Upside)

Alector's overall stock score reflects significant financial and technical challenges. The company's financial performance is weak, with ongoing losses and cash flow issues. Technical analysis indicates bearish momentum. While the earnings call provides some optimism with a strong cash position and clinical progress, these are offset by regulatory and diagnostic challenges. The valuation remains a concern due to negative earnings and lack of dividends.

Positive Factors

Strong Cash Position

Alector's robust cash reserves ensure operational stability and support strategic objectives, allowing continued investment in R&D and clinical trials.

Pipeline Advancements

Progress in clinical trials, such as AL101, indicates potential for future breakthroughs and marketable therapies, enhancing long-term growth prospects.

Proprietary Technology Platform

Alector's proprietary platform underpins its R&D efforts, offering a competitive edge in developing innovative treatments for neurodegenerative diseases.

Negative Factors

Regulatory Challenges

Regulatory hurdles can delay trial progress and increase costs, impacting the timeline for bringing new therapies to market and affecting long-term strategy.

Financial Instability

Ongoing financial challenges, including losses and debt reliance, threaten Alector's ability to sustain operations without external funding, impacting long-term viability.

Complexity in Diagnosing FTD

The complexity of diagnosing FTD complicates patient enrollment and trial success, potentially delaying the development of effective treatments and market entry.

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 treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases. The company also offers AL002, a product candidate that is in Phase II clinical trial for the treatment of Alzheimer's disease; and AL003, which is in Phase I clinical trial for the treatment of Alzheimer's disease. In addition, its products in development stage include AL044 that targets MS4A4A, a risk gene for Alzheimer's disease. Alector, Inc. has a collaboration agreement with Adimab, LLC for the research and development of antibodies; and a strategic collaboration agreement with GlaxoSmithKline plc for the development and commercialization of monoclonal antibodies, such as AL001 and AL101 to treat neurodegenerative diseases. The company was founded in 2013 and is headquartered in South San Francisco, California.

How the Company Makes Money

Alector generates revenue primarily through the development and commercialization of its therapeutic products. This includes revenue from partnerships and collaborations with pharmaceutical companies, which may involve milestone payments and royalties on product sales. Additionally, the company may receive funding through grants, public and private investments, and potential licensing agreements. The successful advancement of its clinical programs into later stages, as well as the eventual market approval and sales of its therapies, are key contributors to its revenue streams.

Alector Financial Statement Overview

Summary

Alector's financial statements depict significant challenges in profitability, revenue growth, and cash flow management. The income statement shows consistent losses and declining revenue, while the balance sheet indicates reliance on debt financing. The cash flow statement highlights ongoing cash burn without significant improvement. Overall, the financial health is concerning, requiring strategic initiatives for long-term sustainability.

Income Statement

Alector's income statement reveals consistent losses with declining revenue over recent years. The gross profit margin is volatile, indicating unstable cost management. The net profit margin is negative, reflecting ongoing unprofitability. Revenue growth rate is negative, highlighting shrinking sales. The company struggles with EBIT and EBITDA margins, displaying operating inefficiencies. Overall, Alector's income statement shows significant challenges in achieving profitability and revenue growth.

Balance Sheet

Alector's balance sheet shows a relatively high debt-to-equity ratio, indicating reliance on debt financing. The return on equity is negative due to net losses, signaling challenges in generating shareholder value. The equity ratio is moderate, suggesting a balanced capital structure. However, the diminishing equity over time points to eroding financial strength. While the company maintains a reasonable level of assets, financial stability remains a concern.

Cash Flow

The cash flow statement highlights Alector's negative free cash flow growth rate, reflecting ongoing cash burn without significant improvement. The operating cash flow to net income ratio is negative, indicating insufficient cash generation from core operations. Free cash flow to net income ratio is also negative, underscoring inefficiencies in converting earnings into cash. Alector faces significant challenges in managing cash flows sustainably.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.05M	100.56M	97.06M	133.62M	207.09M	21.10M
Gross Profit	22.59M	100.56M	88.21M	133.62M	17.68M	-135.77M
EBITDA	-112.36M	-136.16M	-142.89M	-129.36M	-29.05M	-187.91M
Net Income	-107.74M	-119.05M	-130.39M	-133.31M	-36.33M	-190.23M
Balance Sheet
Total Assets	335.29M	468.30M	621.83M	787.65M	814.66M	488.25M
Cash, Cash Equivalents and Short-Term Investments	291.11M	413.40M	548.86M	712.85M	735.25M	413.31M
Total Debt	37.88M	42.52M	38.92M	43.33M	47.60M	51.26M
Total Liabilities	277.57M	341.50M	487.67M	573.21M	513.93M	220.72M
Stockholders Equity	57.71M	126.80M	134.16M	214.44M	300.72M	267.53M
Cash Flow
Free Cash Flow	-197.58M	-231.16M	-186.54M	-24.45M	295.30M	-171.77M
Operating Cash Flow	-197.37M	-229.91M	-184.16M	-20.33M	298.55M	-166.73M
Investing Cash Flow	212.40M	107.13M	101.92M	-159.01M	-49.66M	-105.05M
Financing Cash Flow	24.61M	81.54M	2.55M	4.51M	30.30M	232.11M

Alector Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALEC, the sentiment is Negative. The current price of 1.34 is below the 20-day moving average (MA) of 1.78, below the 50-day MA of 2.52, and below the 200-day MA of 1.78, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 29.26 is Positive, neither overbought nor oversold. The STOCH value of 36.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALEC.

Alector Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACIU	54 Neutral	$331.46M	―	-72.72%	―	-89.01%	-86.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ALEC	45 Neutral	$146.26M	―	-121.98%	―	12.26%	37.36%
IMAB	45 Neutral	―	―	―	―	-100.00%	72.45%
FHTX	41 Neutral	$199.55M	-2.85	―	―	-3.91%	37.89%
VOR	33 Underperform	$128.61M	―	―	―	―	-686.12%
NMRA	33 Underperform	$451.83M	-1.78	-104.35%	―	―	20.71%

Alector Corporate Events

Alector’s Latozinemab Study: A Promising Continuation for Neurodegenerative Disease Treatment

Study Overview: Alector Inc. is conducting a continuation study titled ‘A Continuation Study of Latozinemab in Participants With Neurodegenerative Disease.’ The study aims to provide ongoing access to latozinemab for participants who have previously been involved in a latozinemab study, focusing on its potential benefits for neurodegenerative conditions.

Alector Announces Major Workforce Reduction Post-Trial

On October 21, 2025, Alector announced a significant workforce reduction of approximately 49% to align with strategic priorities following the results of the Phase 3 INFRONT-3 clinical trial for latozinemab (AL001) in frontotemporal dementia, which did not meet its primary endpoint. The company is discontinuing the open-label extension and continuation study for latozinemab, impacting around 75 employees with restructuring charges estimated at $7.7 million. Additionally, Sara Kenkare-Mitra, President and Head of Research and Development, resigned effective December 22, 2025, to pursue other opportunities, with a separation agreement in place. Despite the trial’s outcome, Alector remains committed to advancing its pipeline, including ongoing collaborations and preclinical programs, supported by its proprietary ABC platform.

The most recent analyst rating on (ALEC) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Alector stock, see the ALEC Stock Forecast page.

Alector’s Earnings Call: Progress and Challenges in Neurodegenerative Treatments

Alector’s recent earnings call presented a mixed sentiment, highlighting notable progress in clinical trials and strategic collaborations, particularly with GSK, aimed at developing treatments for neurodegenerative diseases. Despite these advancements, the company faces ongoing challenges in addressing unmet needs in frontotemporal dementia (FTD) and navigating the complexities of regulatory requirements.

Alector Advances Neurodegenerative Therapies Amid Financial Updates

Alector is a late-stage clinical biotechnology company dedicated to developing therapies for neurodegenerative diseases, leveraging genetics, immunology, and neuroscience. The company is known for its innovative approach to addressing conditions such as frontotemporal dementia, Alzheimer’s disease, and Parkinson’s disease.