7 Analysts Assess Alkermes: What You Need To Know

Throughout the last three months, 7 analysts have evaluated Alkermes ALKS, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

In the assessment of 12-month price targets, analysts unveil insights for Alkermes, presenting an average target of $37.14, a high estimate of $50.00, and a low estimate of $25.00. This current average reflects an increase of 5.36% from the previous average price target of $35.25.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of Alkermes by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Alkermes. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alkermes compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Alkermes's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Alkermes's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Alkermes analyst ratings.

Delving into Alkermes's Background

Alkermes PLC is a fully integrated biotechnology company that applies its proprietary technologies to research, develop, and commercialize pharmaceutical products designed for unmet medical needs in therapeutic areas. The company utilizes several to develop and commercialize products and, in so doing, access technological, financial, marketing, manufacturing, and other resources. Alkermes either purchases active drug products from third parties or receives them from its third-party licensees to formulate products using its technologies. It operates in U.S., which derives maximum revenue, Ireland and Rest of the world.

Breaking Down Alkermes's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Alkermes's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 23.89%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 29.88%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.82%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Alkermes's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.11% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Alkermes's debt-to-equity ratio is below the industry average. With a ratio of 0.31, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.