Technicals Say Alkermes plc (ALKS) Is A Hold


Alkermes plc (NASDAQ:ALKS) finished Wednesday with an addition of $0.07 to close at $25.26, an upside of 0.28 percent. An average of 973,140 shares of common stock have been traded in the last five days. There was a fall of -$0.46 in the past week, and it reached a new high 18 times over the past 12 months. The last 20 days have seen an average of 1,328,755 shares traded, while the 50-day average volume stands at 1,702,758.

ALKS stock has increased by 5.38% in the last month. The company shares reached their 1-month lowest point of $23.71 on 11/29/22. With the stock rallying to its 52-week high on 04/28/22, shares of the company touched a low of $21.75 and a high of $32.79 in 52 weeks. It has reached a new high 17 times so far this year and achieved 8.60% or $2.00 in price. In spite of this, the price is down -22.96% from the 52-week high.

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Insider Transactions

ALKS stock investors should be aware that Alkermes plc (ALKS) stock had its last reported insider trading activity 191 days ago on Nov 14. In this transaction, the insider spent $211,203. SVP, Corp Dev., Alkermes, Inc., LANDINE MICHAEL J, disposed of 50,000 shares at a price of $29.15 on May 17. The insider now owns more than $1,457,475 worth of shares. Prior to that, SVP, Corp Dev., Alkermes, Inc. LANDINE MICHAEL J went on to Sale 25,000 shares at $27.22 each on May 10. An amount of $680,380 was transacted.

Valuation Metrics

Alkermes plc (ALKS) stock’s beta is 0.58. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.68, the price-to-book (PB) ratio at 3.98, and the price-to-cash flow ratio at 295.74.

Financial Health

The quick ratio of Alkermes plc for the three months ended September 29 was 1.90, and the current ratio was 2.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.28 and a total debt to equity ratio of 0.28 for the quarter ending September 29. Its gross profit as reported stood at $976.36 million compared to revenue of $1.17 billion.

Earnings Surprise

For the three-month period that ended September 29, Alkermes plc had $316.23 million in cash and short-term investments compared to $290.9 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$63.97 million in the quarter, while revenues were grew 54.68%. The analyst consensus anticipated Alkermes plc’s latest quarter earnings to come in at $0.03 per share, but it turned out to be $0.02, a -33.30% surprise. For the quarter, EBITDA amounted to -$41.04 million. Shareholders own equity worth $164.31 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Alkermes plc (ALKS) price momentum. RSI 9-day as of the close on 28 December was 50.25%, suggesting the stock is Neutral, with historical volatility in this time frame at 21.50%.

As of today, ALKS’s price is $25.51 -1.79% or -$0.46 from its 5-day moving average. ALKS is currently trading +5.16% higher than its 20-day SMA and -1.98% lower than its 100-day SMA. However, the stock’s current price level is +9.26% above the SMA50 and +7.17% above the SMA200.

The stochastic %K and %D were 46.86% and 52.53%, respectively, and the average true range (ATR) was 0.68. With the 14-day stochastic at 43.77% and the average true range at 0.72, the RSI (14) stands at 53.14%. The stock has reached -0.14 on the 9-day MACD Oscillator while the 14-day reading was at -0.10.

Analyst Ratings

Piper Sandler upgraded Alkermes plc (NASDAQ: ALKS) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Alkermes plc (ALKS) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell ALKS, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 5 others rate it as a “buy”.

What is ALKS’s price target for the next 12 months?

Analysts predict a range of price targets between $26.00 and $36.00, with a median target of $31.00. Taking a look at these predictions, the average price target given by analysts for Alkermes plc (ALKS) stock is $31.20.


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