Alkermes plc (NASDAQ: ALKS): The Best-Of-Breed For Investing?


    T. Rowe Price Associates, Inc. (I. recently announced the acquisition of new stake in Alkermes plc (NASDAQ:ALKS). The institutional investor has increased its shareholding in the Healthcare company by 0.44% to 24.11 million shares with purchase of 0.11 million shares. This fresh investment now brings its stake to 15.19% valued currently at $467.77 million. In addition, Wellington Management Co. LLP raised its holdings by 0.1 million to 21.93 million shares. And The Vanguard Group, Inc. has lifted its position by 2.51% or 0.37 million shares – to 15.02 million shares.

    With over 1.32 million Alkermes plc (ALKS) shares trading Tuesday and a closing price of $19.42 on the day, the dollar volume was approximately $25.54 million. The shares have shown a positive weekly performance of 2.00% and its price on 07/21/20 lost nearly -1.57%. Currently, there are 158.10M common shares owned by the public and among those 157.26M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for ALKS have a consensus price objective of $19.27. The analysts have set the share’s price value over the next 12 months at a high of $26.00 and a low of $16.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Alkermes plc stock is 2.90 for the next 12 months. The average price target is -1.73% below its last price level and a downside to the estimated low will see the stock lose -21.38% over that period. But an upside of 25.31% will see the stock hit the forecast high price target while mean target price for the stock is $18.00.

    Insiders at the company have transacted a total of 86 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 46 of these insider trades were purchases, accounting for 1,148,796 shares. Insider sales of the common stock occurred on 40 occasions, with total insider shares sold totaling 992,410 shares.

    The top 3 mutual fund holders in Alkermes plc are Vanguard Health Care Fund, T Rowe Price Mid Cap Growth Fund, and Vanguard Total Stock Market Index. Vanguard Health Care Fund owns 13.61 million shares of the company’s stock, all valued at over $264.01 million. The company bought an additional 0.25 million shares recently to bring their total holdings to about 8.57% of the shares outstanding. T Rowe Price Mid Cap Growth Fund sold 12900.0 shares to see its total holdings shrink to 7.48 million shares valued at over $145.18 million and representing 4.71% of the shares outstanding. Vanguard Total Stock Market Index sold 45116.0 shares to bring its total holdings to over 4.5 million shares at a value of $87.32 million. Vanguard Total Stock Market Index now owns shares totaling to 2.84% of the shares outstanding.

    Shares of Alkermes plc (NASDAQ: ALKS) opened at $19.82, up $0.09 from a prior closing price of $19.73. However, the script later closed the day at $19.42, down -1.57%. The company’s stock has a 5-day price change of 2.00% and 19.65% over the past three months. ALKS shares are trading -4.80% year to date (YTD), with the 12-month market performance down to -14.94% lower. It has a 12-month low price of $11.98 and touched a high of $25.35 over the same period. Currently, 1.32 million shares have been traded, compared to an average intraday trading volume of 1.61 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.09%, 9.80%, and 7.31% respectively.

    Institutional ownership of Alkermes plc (NASDAQ: ALKS) shares accounts for 96.66% of the company’s 158.10M shares outstanding. Mutual fund holders own 43.38%, while other institutional holders and individual stakeholders account for 56.70% and 1.29% respectively.

    It has a market capitalization of $3.07B and a beta (3y monthly) value of 1.47. The earnings-per-share (ttm) stands at -$0.88. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.92% over the week and 4.30% over the month.

    Analysts forecast that Alkermes plc (ALKS) will achieve an EPS of -$0.01 for the current quarter, -$0.01 for the next quarter and $0.42 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.13 while analysts give the company a high EPS estimate of $0.06. Comparatively, EPS for the current quarter was $0.09 a year ago. Earnings per share for the fiscal year are expected to decrease by -39.40%, and 2250.00% over the next financial year. EPS should grow at an annualized rate of 24.00% over the next five years, compared to -43.30% over the past 5-year period.

    Looking at the support for the ALKS, a number of firms have released research notes about the stock. H.C. Wainwright stated their Neutral rating for the stock in a research note on February 14, 2020, with the firm’s price target at $26-$25. JP Morgan coverage for the Alkermes plc (ALKS) stock in a research note released on February 14, 2020 offered a Neutral rating with a price target of $21. BofA/Merrill was of a view on February 14, 2020 that the stock is Neutral, while Mizuho gave the stock Neutral rating on February 06, 2020, issuing a price target of. Wolfe Research on their part issued Peer Perform rating on January 31, 2020.


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