Arcellx Shares Slide 6.2% Amid Mixed Analyst Ratings

Shares of Arcellx, Inc. (NASDAQ:ACLX) dropped by 6.2% during mid-day trading on Thursday, reaching a low of $68.57 before closing at $68.40. This decline follows a previous closing price of $72.94, with trading volume significantly increased at 919,670 shares, marking a 40% rise from the average session volume of 656,541 shares.

Analyst evaluations of Arcellx have been varied, contributing to the stock’s recent volatility. Wolfe Research initiated coverage on Arcellx on November 18, 2023, assigning a “peer perform” rating. In contrast, Weiss Ratings reaffirmed a “sell (D-)” rating on October 8, 2023. Cantor Fitzgerald also reissued a “neutral” rating with a target price of $88.00 on October 9, 2023. On the more optimistic side, Stifel Nicolaus set a target price of $129.00 with a “buy” rating on October 16, 2023, while Citigroup reiterated a “buy” rating on November 24, 2023. Overall, eight research analysts have rated Arcellx as a “buy,” while two have assigned a “hold” rating, and one has given a “sell” rating. According to data from MarketBeat.com, the company currently holds a consensus rating of “Moderate Buy” with an average price target of $115.50.

Recent Earnings Report and Insider Activity

Arcellx released its most recent quarterly earnings report on November 5, 2023. The company reported an earnings per share (EPS) of ($0.99), which fell short of analysts’ expectations of ($0.96) by $0.03. Furthermore, Arcellx reported a negative return on equity of 51.13% and a net margin of 607.01%. The firm’s revenue for the quarter stood at $4.95 million, a significant decline from the consensus estimate of $11.24 million. Looking ahead, analysts predict that Arcellx will report an EPS of ($1.58) for the current fiscal year.

In related news, insider Christopher Heery sold 340 shares of Arcellx on November 17, 2023, at an average price of $90.00, totaling $30,600.00. Following this transaction, Heery’s ownership in the company decreased by 54.49%, leaving him with 284 shares valued at $25,560. Over the last quarter, company insiders have sold a total of 37,486 shares, amounting to approximately $3,030,736 in value. Currently, insiders hold 8.35% of Arcellx’s stock.

Institutional Stakeholders and Company Overview

Numerous institutional investors and hedge funds have altered their positions in Arcellx recently. MAI Capital Management acquired a new stake in the company during the third quarter, valued at about $26,000. CWM LLC increased its stake by 267% during the same period and now owns 345 shares valued at $28,000. Additionally, State of Wyoming purchased a new position in Arcellx worth $28,000, while Ramirez Asset Management Inc. and Abich Financial Wealth Management LLC also acquired new stakes valued at $41,000 and $62,000, respectively. Institutional investors currently hold an impressive 96.03% of the company’s stock.

Founded to develop innovative immunotherapies, Arcellx, Inc. operates primarily in the United States. The company’s lead product candidate, anitocabtagene autoleucel, is currently undergoing a phase 2 clinical trial aimed at treating patients with relapsed or refractory multiple myeloma (rrMM). As the market continues to react to both financial results and analyst insights, Arcellx remains a company to watch in the biotech sector.