Alector Inc. ALEC Stock Analysis

Alector Inc. is a biopharmaceutical company that trades under the ticker ALEC.

ALEC stock has recently shown great technical strength, closing at $26.45/share on 9/17/21.

Alector Inc. ALEC Stock Technical Performance Broken Down

Alector Inc. ALEC Stock Technical Performance For The Last Year

ALEC Stock Price: $26.81

10 Day Moving-Average: $24.42

50 Day Moving-Average: $27.97

200 Day Moving-Average: $20.87

RSI: 54.2

MACD: -0.649

After yesterday’s Bullish MACD crossover, ALEC looks to have more room to run with positive momentum in the near-term.

Although the broader market is not looking stable at the moment, ALEC stock has gone up almost every day of September, while maintaining a relatively even RSI.

While their share price is 4% below the 50 Day MA, there looks to be positive momentum to push ALEC stock price higher, bringing the 10 Day MA higher with it.

Alector Inc. ALEC Stock As A Long-Term Investment Opportunity

Alector Inc. looks to have some positive attributes that long-term focused investors may want to take advantage of.

ALEC’s Total Cash (mrq)is $319.6M, while only having $49.6M in Total Debt (mrq).

They also have a 78.8% % Institutional Ownership rate, showing that larger investors are fans of their stock.

They do not offer a Dividend Yield, and do not have a positive P/E (ttm).

However, some investors may be interested in their high cash/low debt levels & use ALEC stock to get exposure to biopharmaceutical companies.

Alector Inc. ALEC Stock As A Short-Term Trade Opportunity With Options

ALEC stock looks set to carry their positive momentum higher in the near-term, so I am looking at their 10/15 expiration dated options.

From the calls perspective, the $25 & $30 strike prices look appealing, with $25 being in-the-money already.

Friday was the expiration date for their September options, so expect to see more Open Interest coming in the coming days as more contracts are written.

From a puts perspective, the $35 & $30 puts look appealing, with notably lower Open Interest, showing bullishness from market participants.

Tying It All Together

All-in-all ALEC stock looks to have many advantages that are worth taking a closer look at.

Longer-term focused investors will like their low debt/high cash levels, as well as their industry exposure.

Short-term traders can still benefit from their current momentum, while also being able to profit from the current volatility that looks set to hit markets this week.

Overall, Alector Inc. stock is worth taking a closer look at, no matter your trading style & timeframe.

*** I DO NOT OWN SHARES OF ALEC STOCK ***

Leave a Reply

Your email address will not be published. Required fields are marked *