Alector, Inc.
$1.77
-6.1%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -1.3).
Valuation inputs: P/E -1.3, earnings yield N/A, momentum -6.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -4.7%, ROIC -62.5%).
Profitability stack: net margin -6.8%, ROE -4.7%, ROIC -62.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +89.5%, momentum -6.1%, net margin -6.8%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Alector, Inc. Market vs Earnings Trajectory
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Alector, Inc. Fair Value Envelope
Alector, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Alector, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Alector, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
Alector, Inc. Street Expectations Map
Wall Street analysts project that ALEC stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 2.00, with estimates ranging from a low of 2.00 to a high of 2.00.
The consensus 1-year price target stands at 2.00, with estimates ranging from a low of 2.00 to a high of 2.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Alector, Inc. Insider Positioning
During the last 12 months, insiders have purchased $224K and sold $793K worth of ALEC shares, resulting in $568K of net selling activity.
3 Months
0
0.00
2.8K
7.47K
-7K
-$7K
3-6 Months
0
0.00
127.0K
271.12K
-271K
-$271K
6-9 Months
0
0.00
196.1K
219.98K
-220K
-$220K
9-12 Months
148.1K
224.19K
127.8K
293.99K
-70K
-$70K
Top Buyers
Rosenthal Arnon
Director, Officer: Chief Executive Officer
$65K
Kenkare-Mitra Sara
Officer: President And Head Of R&D
$26K
Berkley Neil Lindsay
Officer: Principal Financial Officer
$26K
Yaffe Kristine
Director
$15K
Garofalo Elizabeth A.
Director
$15K
Top Sellers
Rosenthal Arnon
Director, Officer: Chief Executive Officer
$419K
Berkley Neil Lindsay
Officer: Cfo & Chief Business Officer
$159K
Kenkare-Mitra Sara
Officer: President And Head Of R&D
$106K
Wong-Sarad Grace
Officer: Principal Accounting Officer
$74K
Hammond Paula
Director
$33K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $568K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider buyers and 5 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
ALEC has not reported any dividend yield values in the available annual periods.
alec Dividend History
Learning Layer
Related Guides
Build conviction on ALEC by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.