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Allogene Therapeutics Rose 27% on ALLO-501 Trial Data


Nov. 20 2020, Updated 5:15 p.m. ET

Allogene Therapeutics stock rose 27.5% in pre-market today at 6:54 AM ET. Notably, the stock rose after the biotechnology company reported the abstract associated with a forthcoming oral presentation at the ASCO (American Society of Clinical Oncology) Annual Meeting.

In a press release, Allogene Therapeutics said, “This will be the first data from Allogene’s Phase 1 dose escalation ALPHA study of ALLO-501 in relapsed/refractory non-Hodgkin lymphoma (NHL). This study utilizes ALLO-647, Allogene’s anti-CD52 monoclonal antibody, as a part of its differentiated lymphodepletion regimen.” The report also said, “The ASCO abstract includes preliminary data on the first nine patients treated with escalating doses of ALLO-501 and lower dose (39mg) ALLO-647. No dose limiting toxicities or graft-vs-host disease (GvHD) was observed.”

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First-quarter earnings results

In the first quarter, Allogene Therapeutics’ research and development expenses rose 79.6% YoY (year-over-year) to $42.0 million. Likewise, the company’s total operating expenses rose 58.2% YoY to $57.68 million. In the first quarter, Allogene Therapeutics reported an EPS of -$0.50 compared to -$0.32 in the first quarter of 2019. The earnings beat analysts’ consensus estimate of -$0.58 per share for the first quarter.

Analysts’ recommendations for Allogene Therapeutics

Currently, 16 Wall Street analysts cover Allogene Therapeutics. Among the analysts, 11 recommend a “buy” and five recommend a “hold.” None of the analysts recommend a “sell.” Wall Street analysts’ mean 12-month target price on the stock is $37.31, which implies a 20.4% gain from the current level of $30.98. The consensus target price for the stock has risen from $34.46 in April—a rise of about 8%.

Many analysts revised their target price for Allogene Therapeutics stock after its abstract report today.

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  • Oppenheimer increased its target price from $44 to $50.
  • Jefferies increased its target price from $37 to $45.
  • Canaccord Genuity increased its target price from $36 to $44.
  • H.C. Wainwright increased its target price from $35 to $42.
  • Suntrust Robinson downgraded the stock from “buy” to “hold” and increased its target price from $29 to $32.

Stock returns

Allogene Therapeutics stock fell 4.8% on Wednesday and ended the day at $30.98. At this closing price, the company’s market cap is $3.9 billion. Notably, the stock is trading 13.0% below its 52-week high of $35.61 and 77.7% above its 52-week low of $17.43.

Based on Allogene Therapeutics’ closing price on Wednesday, the stock was trading 5.9% above its 20-day moving average of $29.26. The stock is trading 25.2% above its 50-day moving average of $24.74 and 24.5% above its 100-day moving average of $24.89. Meanwhile, the stock’s 14-day relative strength index score of 59 implies that it isn’t overbought or oversold.

Allogene Therapeutics’ lower, middle, and upper Bollinger Bands are $25.13, $29.26, and $33.39, respectively. The stock closed near its middle Bollinger Band level, which suggests that it’s neutral.

On Wednesday, the Dow Jones Industrial Average (NYSEARCA:DIA) declined by 517 points or 2.2%. Also, the S&P 500 (NYSEARCA:SPY) and the Nasdaq Composite fell 1.75% and 1.55%, respectively. To learn more, read Goldman Sachs Warns about a US Stock Market Crash.


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