Stock Price & Analysis

Based on the analysis of Alkermes Plc (ALKS), the stock is currently trading at $34.26 with a market cap of $5.57 billion. While the company has shown strong earnings and revenue growth, insider selling and mixed institutional sentiment suggest caution. The stock is fairly valued, and without a clear uptrend, it is recommended to hold rather than buy or sell at this time.

The price prediction for ALKS stock in 2025 is approximately $38. This forecast is supported by strong Q4 earnings, a positive analyst consensus with an average price target of $39.30, and the stock's current momentum. However, potential headwinds include insider selling activity and technical resistance levels.

The S1 support level for ALKS Stock is $33.36 ,The R1 resistant level for ALKS Stock is $35.39.

As of the end of day on 2025-03-14, the price of ALKS Stock was $34.07.

The target price for ALKS Stock according to analyst rating is 38.42, with the highest price target at 46.00 and the lowest at 30.00. Analysts have a Moderate Buy rating on ALKS Stock overall.

The market cap of ALKS is $5.5B.

Analysis and Insights

To determine if ALKS is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

ALKS currently has a PE ratio of 13.08, which is slightly above the industry average, suggesting a premium valuation. However, its EV/EBITDA of 8.69 indicates it is fairly valued compared to peers. The stock's PS ratio of 3.13 reflects strong revenue growth relative to its price.

Financial Performance:

ALKS has shown strong revenue growth, with Q4 2024 revenue reaching $429.986M, up 22.8% YoY. Net income has also improved significantly, with Q4 net income of $146.503M, up 297.3% YoY. The company's gross margin of 85.55% and ROE of 33.89% highlight strong profitability and efficient equity use.

Market Sentiment:

Analysts have mixed opinions, with a consensus rating of Hold and an average price target of $39.30, implying 15.1% upside. Recent insider sales and mixed institutional activity suggest caution, despite strong earnings and guidance.

Conclusion:

ALKS is not significantly overvalued given its strong financial performance and growth prospects, despite a higher PE ratio. The stock's fair valuation and positive analyst sentiment suggest it is reasonably priced.

Alkermes plc is a global biopharmaceutical company that seeks to develop medicines in the field of neuroscience. The Company has a portfolio of commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder and a pipeline of clinical and preclinical candidates in development for neurological disorders. It focuses on commercial products, such as LYBALVI, ARISTADA/ARISTADA INITIO and VIVITROL, and advancing the development of pipeline programs focused on neurological disorders. LYBALVI is a once-daily, oral atypical antipsychotic drug for the treatment of adults with schizophrenia and for the treatment of adults with bipolar I disorder, as a maintenance monotherapy or for the acute treatment of manic or mixed episodes, as monotherapy or an adjunct to lithium or valproate. ARISTADA is an extended-release intramuscular injectable suspension for the treatment of schizophrenia. It has a manufacturing facility in Wilmington, Ohio.

Based on fundamental analysis, strong product sales, and pipeline potential, ALKS stock could reach $38 to $48 by 2030. Growth will depend on pipeline success, particularly ALKS 2680 for narcolepsy.

ALKS has a total of 2100 employees.