In a recent transaction, Jaume Pons, the President and Chief Scientific Officer (CSO) of ALX Oncology Holdings Inc. (NASDAQ:ALXO), sold shares of the company's stock. The sale, which took place on June 4, 2024, involved 20,000 shares at a weighted average price of $8.4326 per share, amounting to a total of $168,652. The shares were sold in multiple transactions at prices that ranged from $8.17 to $8.87.
This sale was conducted under a Rule 10b5-1 trading plan, which Pons had adopted on December 6, 2023. Rule 10b5-1 allows corporate insiders to set up a predetermined plan to sell company stocks in a way that avoids accusations of insider trading. The plan outlines future trades to be executed at specified times, prices, or under certain conditions, providing a legal defense against insider trading allegations by demonstrating that the trades were planned in advance.
On the same day, Pons also acquired 20,000 shares of ALX Oncology's common stock at a price of $0.99 per share, totaling $19,800. This transaction was a result of exercising options that are fully vested and immediately exercisable, as noted in the footnotes of the SEC filing.
Following these transactions, Pons's ownership in the company stands at 604,205 shares of common stock directly held. The executive's transactions are detailed in a Form 4 filed with the Securities and Exchange Commission, which provides a record of insider trades.
Investors often monitor insider buying and selling as it can provide insights into an insider's perspective on the company's future performance. While insider selling does not necessarily indicate a lack of confidence in the company, it may raise questions among investors when a high-level executive such as a President and CSO sells a significant amount of stock.
ALX Oncology is a pharmaceutical company that specializes in developing therapies for cancer treatment. The company's stock performance and insider transactions are closely watched by investors seeking to understand market trends and company developments.
In other recent news, ALX Oncology has been the focus of various recent developments. Piper Sandler has maintained its Overweight rating and a $21.00 price target on ALX Oncology shares, following the presentation of complete ASPEN-07 study data. The study, focused on evorpacept, ALX Oncology's CD47 targeting antibody, demonstrated an objective response rate (ORR) of 59%, suggesting potential for significant improvement over single-agent treatments.
Similarly, Stifel retained its Hold rating on ALX Oncology, with a steady stock price target of $14.00. The firm's analysis followed the presentation of new single-arm efficacy data from an evorpacept non-Hodgkin lymphoma (NHL) combination. However, Stifel later downgraded ALX Oncology from a "Buy" to a "Hold" rating, adjusting the price target to $14.00, up from the previous target of $10.00. The revision was based on the assessment of the market potential and development trajectory of evorpacept.
In terms of personnel changes, ALX Oncology recently announced the appointment of Allison Dillon, Ph.D., as its new Chief Business Officer. Dr. Dillon's extensive experience in oncology product development and commercial strategy is expected to be instrumental as the company prepares for multiple clinical study outcomes within the next year. These developments highlight the ongoing efforts of ALX Oncology to improve cancer treatment through innovative therapies.
InvestingPro Insights
Amid the recent insider transactions by Jaume Pons, ALX Oncology Holdings Inc. (NASDAQ:ALXO) has shown notable market activity. The company currently holds a market capitalization of $478.28 million. Despite a challenging period, ALX Oncology's stock is considered to be in oversold territory according to an InvestingPro Tip, with an RSI suggesting that the recent sell-offs may have been overextended. This could potentially indicate a buying opportunity for investors who believe in the company's fundamentals.
However, it's important to consider that ALX Oncology has been facing financial headwinds. The company is quickly burning through cash, and analysts are not anticipating profitability this year, as detailed in another InvestingPro Tip. This aligns with the company's current P/E ratio, which stands at -2.44, and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -2.8, reflecting the market's sentiment towards its earnings potential.
For those looking to delve deeper into ALX Oncology's financials and stock performance, it's worth noting that the company's stock has taken a considerable hit over the last week, with a 1-week price total return of -17.37%. Additionally, the price has fallen significantly over the last three months, with a 3-month price total return of -40.42%. These metrics, along with the fact that ALX Oncology does not pay a dividend to shareholders, are crucial for investors to consider when evaluating the stock.
For more detailed analysis and additional InvestingPro Tips, interested readers can explore the company's profile on InvestingPro. There are 11 additional tips available that could provide further insights into ALX Oncology's financial health and stock performance. To gain access to these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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