Allogene stock touches 52-week low at $2 amid market challenges

Published 20/11/2024, 20:56
Allogene stock touches 52-week low at $2 amid market challenges

Allogene Therapeutics Inc . (NASDAQ:ALLO) stock has reached a 52-week low, trading at $2.00, as the biotechnology firm faces a challenging market environment. This new low comes as a significant downturn for the company, which has seen its stock price decrease by 28.55% over the past year. Investors are closely monitoring Allogene's performance, as the company navigates through a period of volatility and seeks to regain its footing in the competitive biotech sector. The 52-week low serves as a critical indicator for the company's valuation and is a key point of focus for stakeholders assessing the company's future prospects.

In other recent news, biotechnology company Allogene Therapeutics has experienced a series of significant developments. Piper Sandler has revised the company's stock price target down to $9 from the previous $11 while maintaining an Overweight rating, following Allogene's decision to halt new patient enrollment in the phase 1 cohort of its ALPHA2 study due to a slower-than-expected rate of enrollment. Concurrently, Allogene has made substantial progress in its clinical trials and financial standing. H.C. Wainwright upheld a Buy rating on Allogene, following encouraging data from the TRAVERSE trial, which showed a 38% objective response rate for ALLO-316 in treating adult patients with CD70+ advanced renal cell carcinoma. Despite a net loss of $66.3 million in the third quarter of 2024, Allogene maintains a robust cash balance of $403.4 million, expecting its cash runway to extend into the second half of 2026. Furthermore, the company's ALPHA3 trial for cema-cel, targeting large B cell lymphoma, is progressing with over half of the sites activated. Lastly, an IND filing for ALLO-329, targeting autoimmune diseases, is anticipated in Q1 2025.

InvestingPro Insights

Allogene Therapeutics Inc. (ALLO) is currently facing significant challenges, as reflected in its recent stock performance. InvestingPro data shows that the company's stock has taken a substantial hit, with a 22.06% decline in the past week and a 25.35% drop over the last month. This aligns with the article's mention of the stock reaching a 52-week low.

Despite these setbacks, InvestingPro Tips highlight that Allogene holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This financial positioning could provide some stability as the company navigates through its current difficulties.

However, investors should note that Allogene is quickly burning through cash and is not profitable over the last twelve months. The company's gross profit margin is weak, with a staggering -469,639.53% for the last twelve months as of Q3 2024, indicating significant challenges in its cost structure.

On a more positive note, 7 analysts have revised their earnings upwards for the upcoming period, suggesting some optimism about the company's near-term prospects. For investors seeking a deeper understanding of Allogene's financial health and market position, InvestingPro offers 13 additional tips that could provide valuable insights into the company's outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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