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Alto Neuroscience , Inc. (NYSE:ANRO), a pharmaceutical company currently trading at $4.18 per share, has entered into a Sales Agreement with Leerink Partners LLC, initiating an "at the market" offering program. Today, the company announced the potential sale of common stock shares with an aggregate offering price of up to $75 million, based on a Registration Statement filed on the same day. The offering comes as the stock has experienced a significant decline, down nearly 80% over the past year. InvestingPro analysis reveals several key insights about the company’s financial position, with 8 additional ProTips available to subscribers.
The company, headquartered in Mountain View, California, may periodically sell shares through Leerink Partners, acting as the sales agent. Under the agreement, Leerink Partners will endeavor to sell the shares based on Alto Neuroscience’s instructions, earning a commission of up to 3.0% of the gross sales price per share sold. With a current market capitalization of approximately $116 million, analysts maintain a bullish outlook, with price targets ranging from $4 to $18 per share.
The offering allows Alto Neuroscience to sell shares directly on the market, with the flexibility to control the timing and amount of stock sold. The company emphasizes that there is no obligation to sell any shares and retains the right to suspend or terminate the offering at any time.
In conjunction with the offering announcement, Alto Neuroscience disclosed preliminary financial data, reporting approximately $168 million in cash and cash equivalents as of December 31, 2024. This strong cash position is reflected in the company’s impressive current ratio of 13.09, indicating solid short-term liquidity. However, the company cautions that these figures are preliminary and subject to change once financial closing procedures for the year are completed. InvestingPro data shows the company maintains a "Fair" overall financial health score, with detailed metrics and analysis available to subscribers.
This press release statement serves as the source for the information provided, and the company advises that the preliminary financial data should not be relied upon until final results are available. The financial data has not been audited or reviewed by the company’s independent registered public accounting firm, Deloitte & Touche LLP.
The announcement of the ATM offering and the preliminary financial data are intended to keep investors informed and do not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, Alto Neuroscience has been the focus of several analyst moves. Jones Trading initiated coverage on the company, assigning a Buy rating with a price target of $18.00. This target represents a significant upside from the current price and is based on the company’s ongoing clinical developments. On the other hand, Rodman & Renshaw downgraded Alto Neuroscience to a Neutral position after its Phase 2b study for ALTO-100 did not meet the primary endpoint in treating major depressive disorder (MDD). The firm also reduced the stock’s price target to $5.50, reflecting the company’s estimated cash position by the end of 2024.
Baird, while reducing the company’s price target to $10.00 from $32.00, maintained an Outperform rating. Despite the setback with ALTO-100, Alto Neuroscience remains active in its research endeavors, notably with the upcoming ALTO-300 readout. Additionally, the company has initiated a Phase 2 study of ALTO-101, a drug for Cognitive Impairment Associated with Schizophrenia. In a recent development, the company appointed Michael Hanley as its new Chief Operating Officer, a move that adds over 25 years of experience to the company’s product planning and portfolio strategy. These developments reflect Alto Neuroscience’s continued commitment to advancing its clinical trials and research efforts in the treatment of CNS diseases.
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