ALKS Should I Buy
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Alkermes Plc (ALKS) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. While the company has positive developments such as the acquisition of Avadel and a bullish moving average trend, the recent price decline, insider selling, and weak financial performance in the latest quarter suggest caution. The absence of strong proprietary trading signals and mixed sentiment from options and analysts further supports a hold recommendation.
The MACD is negative and expanding downward, indicating bearish momentum. RSI is neutral at 37.991, not signaling overbought or oversold conditions. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading near its support level of 33.369, with resistance at 35.128. Overall, the technical indicators are mixed, with no strong buy signal.
Acquisition of Avadel, adding FDA-approved LUMRYZ® to its portfolio, which strengthens its position in the sleep medicine market.
Positive Vibrance-2 results and increased price target from Truist to $55, reflecting optimism around the alixorexton program.
Insider selling has increased by 824.05% over the last month, signaling potential lack of confidence from company insiders.
Recent price decline of -4.64% in the regular market and -3.58% in pre-market trading.
Net income and EPS declined YoY in Q3 2025, indicating weaker profitability.
In Q3 2025, revenue increased by 4.24% YoY to $394.19M, but net income dropped by -10.41% to $82.76M. EPS also declined by -10.91% to 0.49. Gross margin improved to 86.91%, up 4.32% YoY, but overall profitability metrics are under pressure.
Analysts have mixed views. Truist raised its price target to $55 and maintains a Buy rating, citing positive Vibrance-2 results. However, Jefferies lowered its price target for Avadel (acquired by Alkermes) to $22.50, reflecting skepticism about competing bids. Guggenheim's commentary on Alkermes' alixorexton results was mixed, describing them as 'relatively underwhelming.'
