Technicals Say Alkermes plc (ALKS) Is Worth Holding

As of Friday close, Alkermes plc’s (NASDAQ:ALKS) stock was up $0.31, moving up 1.17 percent to $26.88. The average number of shares traded per day over the past five days has been 2,020,580 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.75 fall in that time frame. In the last twenty days, the average volume was 1,996,260, while in the previous 50 days, it was 1,623,430.

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Since last month, ALKS stock retreated -6.47%. Shares of the company fell to $26.14 on 05/12/22, the lowest level in the past month. A 52-week high of $33.00 was reached on 04/28/22 after having rallying from a 52-week low of $21.24. Since the beginning of this year, ALKS’s stock price has risen by 15.56% or $3.62, and marked a new high 17 times. However, the stock has declined by -18.55% since its 52-week high.

Alkermes plc (ALKS) last reported insider trading activity 4 days ago on May 10. LANDINE MICHAEL J, the SVP, Corp Dev., Alkermes, Inc. of the company, disposed of 25,000 shares for $27.22 on May 10. It resulted in a $680,380 divestment by the insider. POPS RICHARD F sold 93,747 shares at an average price of $27.85 on May 06. The insider now owns 968,299 shares following the transaction. On May 05, Director and CEO, Alkermes plc POPS RICHARD F sold 253,510 shares at $28.03 apiece. The transaction was valued at $7,106,470.

Valuation Metrics

The stock’s beta is 0.76. Besides these, the trailing price-to-sales (P/S) ratio of 3.69, the price-to-book (PB) ratio of 4.06, and the price-to-cash flow ratio of 31.53 may also be considered.

Financial Health

In the three months ended March 30, Alkermes plc’s quick ratio stood at 1.90, while its current ratio was 2.20, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.27, and the total debt-to-equity ratio was 0.27. On the profitability front, the trailing twelve-month gross margin is 82.40% percent. In the year ended March 30, operating margins totaled -3.30%. Based on annual data, ALKS earned $976.36 million in gross profit and brought in $1.17 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -2.90%. Return on equity (ROE) for the past 12 months was -5.60%.

In Alkermes plc’s quarter-end financial report for March 30, it reported total debt of $292.17 million against cash and short-term investments of $246.32 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. ALKS’s revenue rose 9.74% to $324.46 million during the quarter, while net income inched up to $278.55 million. While analysts expected Alkermes plc to report $0.01 quarterly earnings, the actual figure was $0.12 per share. During the quarter, the company generated -$7.39 million in EBITDA. The liabilities of Alkermes plc were 902.46 million at the end of its most recent quarter ended March 30, and its total debt was $415.33 million. The value of shareholders’ equity is $163.43 million.

Technical Picture

This quick technical analysis looks at Alkermes plc’s (ALKS) price momentum. With a historical volatility rate of 28.84%, the RSI 9-day stood at 40.44% on 13 May.

With respect to its five-day moving average, the current Alkermes plc price is down by -2.71% percent or -$0.75. At present, ALKS shares trade -8.45% below its 20-day simple moving average and +14.58% percent above its 100-day simple moving average. However, the stock is currently trading approximately +14.43% above its SMA50 and +5.16% above its SMA200.

Stochastic coefficient K was 6.60% and Stochastic coefficient D was 6.01%, while ATR was 1.38. Given the Stochastic reading of 11.13% for the 14-day period, the RSI (14) reading has been calculated as 44.03%. As of today, the MACD Oscillator reading stands at -0.81, while the 14-day reading stands at -1.38.

Analyst Ratings

Alkermes plc (ALKS) has been rated Overweight by analysts. According to 0 brokerage firms , ALKS is a sell, and 5 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 0 analysts rate Alkermes plc stock as buy, with 4 recommending it as overweight.

With a median target price of $32.00, the current consensus forecast for the stock is $27.00 – $37.00. Based on these forecasts, analysts predict Alkermes plc (ALKS) will achieve an average price target of $31.56.


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