TLDR
- Alvotech (NASDAQ:ALVO) shares saw 83% jump in trading volume to 379,923 shares after beating earnings expectations
- Company reported $0.14 earnings per share versus consensus estimate of negative $0.26, beating by $0.40
- Revenue came in at $116.02 million, slightly below the $120.51 million estimate
- UBS Group cut price target from $16 to $14 but maintained buy rating
- Stock closed at $8.09, down from previous close of $8.96 despite strong earnings beat
Alvotech shares experienced heavy trading activity Thursday after delivering earnings results that crushed analyst expectations. The biosimilar drugmaker’s stock attracted 379,923 shares in trading volume, representing an 83% increase from the previous session’s 207,330 shares.
The company posted earnings of $0.14 per share for the quarter. This result demolished the consensus estimate of negative $0.26 per share, creating a positive surprise of $0.40.
However, revenue told a different story. Alvotech generated $116.02 million in quarterly revenue, falling short of the $120.51 million analyst estimate.
Despite the earnings beat, shares closed lower at $8.09. The stock had finished the previous session at $8.96.
The earnings surprise represented a dramatic turnaround for the company’s profitability metrics. Wall Street had expected another quarterly loss, making the positive earnings result particularly striking.
Analyst Downgrades Price Target
UBS Group analysts made moves on Alvotech’s rating in July. The investment bank reduced its price target from $16.00 to $14.00 while keeping a buy rating on the stock.
This price adjustment came ahead of the earnings announcement. The new target still represents substantial upside from current trading levels.
The company’s financial metrics show mixed signals. Alvotech carries a negative return on equity of 38.36%, indicating challenges with shareholder returns.
But the net margin of 11.26% demonstrates the company can generate profit from its operations. This positive margin helped drive the surprise earnings result.
Institutional Activity Remains Active
Several major institutional investors have been adjusting their Alvotech positions. Geode Capital Management increased its stake by 0.7% during the second quarter, bringing total holdings to 230,291 shares worth $2.1 million.
Wolverine Asset Management made a larger move, boosting its position by 24.7% in the first quarter. The firm now holds 9,286 shares valued at approximately $90,000.
Bank of America expanded its Alvotech holdings by 19.7% in the fourth quarter. The bank’s position now totals 16,240 shares worth around $215,000.
China Universal Asset Management also increased exposure, adding 6.9% to reach 60,472 shares worth $585,000. BNP Paribas Financial Markets established a new $66,000 position during the fourth quarter.
The stock trades with a market capitalization of $2.71 billion. Its 50-day moving average sits at $9.02, while the 200-day average reaches $9.90.
Alvotech maintains a price-to-earnings ratio of 39.13 and shows low volatility with a beta of 0.11. The company’s current trading price of $8.09 remains below both key moving averages.
