10 Best Biotech Penny Stocks to Buy Now

4. Alector, Inc. (NASDAQ:ALEC)

Number of Hedge Fund Holders: 24 

Alector, Inc. (NASDAQ:ALEC) is a clinical-stage biotechnology company focused on developing therapies for neurodegenerative diseases and immuno-neurology.  Alector has demonstrated noteworthy advancements in its clinical programs, specifically in the areas of frontotemporal dementia (FTD) and Alzheimer’s disease. AL001, which is their front-runner, has shown encouraging outcomes in FTD patients with progranulin mutations. Alector stated in January 2024 that it intended to raise money for its general company operations and future clinical pipeline breakthroughs through a public offering of common stock. With an emphasis on genetic forms of dementia and cutting-edge methods for treating immune dysfunction in the brain, Alector has established himself as a leader in immuno-neurology in response to the biotech industry’s growing interest in treatments for neurodegenerative diseases.

Alector, Inc. (NASDAQ:ALEC) holds a Moderate Buy rating based on analysis by 7 Wall Street analysts over the past 3 months. The average 12-month price target is $15.17, ranging from $9.00 to $35.00. This suggests a potential 234.14% increase from its current trading price of $4.54. In Q1 2024, 24 hedge funds held positions in the company. The hedge fund with the largest share was EcoR1 Capital with 4,056,548 shares worth $24,420,419, comprising 0.61% of the company’s total portfolio.

In Q1 2024, Alector, Inc. (NASDAQ:ALEC) reported collaboration revenue of $15.9 million, down slightly from $16.5 million in Q1 2023, primarily due to lower AL001 program revenue. Research and development expenses decreased to $45.2 million from $51.9 million which was driven by prioritization of late-stage programs and reduced personnel costs. The company recorded a net loss of $36.1 million, or $0.38 per share in the same period, improving from $45.9 million, or $0.55 per share, in Q1 2023. As of March 31, 2024, Alector held $562.1 million in cash, cash equivalents, and investments following a January 2024 follow-on financing.