Alkermes plc (NASDAQ:ALKS) Executive Vice President of Research and Development and Chief Medical (TASE:PMCN) Officer, Craig C. Hopkinson, recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Hopkinson disposed of 10,471 ordinary shares on November 6, 2024. The shares were sold at a weighted average price of $29.53, with transaction prices ranging between $29.50 and $29.61. The total sale amounted to approximately $309,168.
Following this transaction, Hopkinson retains ownership of 99,238 shares in Alkermes. The sale was conducted under a Rule 10b5-1 trading plan, which was established on December 14, 2023. This plan allows insiders to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest.
In other recent news, Alkermes reported a significant 18% increase in Q3 2024 revenues, reaching $378.1 million, driven by proprietary products VIVITROL, ARISTADA, and LYBALVI. The company also reported non-GAAP earnings per share of $0.72, slightly above the estimated $0.70. Stifel upgraded Alkermes from Hold to Buy and raised the price target to $36, based on a positive outlook for the company's orexin program, particularly the ALKS2680 candidate. H.C. Wainwright maintained a Neutral stance on Alkermes with a price target of $37.00, while Piper Sandler adjusted its price target to $37.00, maintaining an Overweight rating. Goldman Sachs (NYSE:GS) endorsed the stock with a Buy rating but lowered the price target to $30.00. Leerink Partners maintained a Market Perform rating with a $28.00 price target. These developments indicate an active interest in Alkermes' pipeline, particularly the ALKS2680 program, which is advancing into Phase 2 trials for narcolepsy and idiopathic hypersomnia. Despite an anticipated reduction in EBITDA due to changes in manufacturing and royalty revenues, Alkermes remains focused on its growth strategy.
InvestingPro Insights
In light of Craig C. Hopkinson's recent stock sale, it's worth examining some key financial metrics and insights about Alkermes plc (NASDAQ:ALKS) from InvestingPro.
The company's financial health appears robust, with InvestingPro Data showing a market capitalization of $4.74 billion. Alkermes boasts a strong gross profit margin of 83.17% for the last twelve months as of Q3 2024, indicating efficient cost management and pricing power in its pharmaceutical operations.
An InvestingPro Tip highlights that Alkermes holds more cash than debt on its balance sheet, which aligns with another tip stating that the company's liquid assets exceed short-term obligations. This strong liquidity position provides financial flexibility and reduces risk, potentially explaining why executives like Hopkinson might feel comfortable adjusting their holdings.
Despite the recent insider sale, Alkermes has shown impressive market performance. InvestingPro Data reveals a 13.97% price return over the past week and a 17.89% return over the last year. This positive momentum might suggest that the market remains optimistic about the company's prospects, even as some insiders reduce their stakes.
For investors seeking a deeper understanding of Alkermes' financial position and future outlook, InvestingPro offers 8 additional tips not mentioned here. These insights could provide valuable context for interpreting insider transactions and evaluating the company's potential.
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