Alkermes (NASDAQ:ALKS) Trading Down 6.7% Following Weak Earnings
by Danessa Lincoln · The Markets DailyAlkermes plc (NASDAQ:ALKS – Get Free Report)’s share price traded down 6.7% on Wednesday following a dissappointing earnings announcement. The company traded as low as $30.54 and last traded at $31.1550. 670,308 shares changed hands during trading, a decline of 65% from the average session volume of 1,940,193 shares. The stock had previously closed at $33.39.
The company reported $0.29 earnings per share for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.14). Alkermes had a net margin of 22.27% and a return on equity of 21.81%. The firm had revenue of $384.55 million for the quarter, compared to the consensus estimate of $380.44 million. During the same period last year, the firm earned $1.05 earnings per share. The company’s revenue for the quarter was down 10.6% on a year-over-year basis. Alkermes has set its FY 2026 guidance at -0.798–0.680 EPS.
Trending Headlines about Alkermes
Here are the key news stories impacting Alkermes this week:
- Positive Sentiment: Wolfe Research initiated coverage with an “outperform” rating and $45 price target — provides a bullish analyst catalyst and a sizable upside to current levels. Wolfe Research initiation
- Positive Sentiment: Board announced an orderly CEO succession: Richard Pops will retire July 31, 2026, and COO Blair Jackson will become CEO Aug. 1, 2026 — reduces leadership uncertainty and signals continuity. CEO Succession Press Release
- Neutral Sentiment: Alkermes to present at the TD Cowen Health Care Conference — visibility event for investors but not an immediate earnings driver. Conference presentation
- Neutral Sentiment: Media noted the company recently closed the Avadel acquisition ahead of these results — strategic context for revenue/growth but impact depends on integration and margins. Avadel acquisition coverage
- Neutral Sentiment: Reported short-interest data in the feed is noisy/zeroed out and not informative for near‑term squeezes (no clear signal).
- Negative Sentiment: Q4 EPS missed: Alkermes reported $0.29 EPS vs. consensus $0.43, and revenue $384.6M (slightly above estimates) with revenue down ~10.6% y/y — suggests margin pressure and weaker profitability versus expectations. Earnings press release / slides Conference call
- Negative Sentiment: Crucial FY‑2026 guidance missed expectations: Alkermes updated EPS guidance to -0.798 to -0.680 vs. consensus ~1.63 — a materially weaker profitability outlook that explains the negative market reaction despite revenue guidance near street. FY2026 guidance press release
Wall Street Analysts Forecast Growth
A number of equities analysts have recently issued reports on ALKS shares. Weiss Ratings reiterated a “hold (c+)” rating on shares of Alkermes in a research note on Monday, December 29th. Wells Fargo & Company dropped their target price on Alkermes from $42.00 to $37.00 and set an “overweight” rating on the stock in a research report on Thursday, November 13th. Zacks Research lowered Alkermes from a “strong-buy” rating to a “hold” rating in a research report on Thursday, February 19th. Bank of America raised their price objective on Alkermes from $33.00 to $34.00 and gave the company a “neutral” rating in a research report on Friday, February 20th. Finally, Wolfe Research began coverage on shares of Alkermes in a report on Monday. They issued an “outperform” rating and a $45.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $44.00.
Read Our Latest Stock Report on Alkermes
Insider Activity at Alkermes
In other Alkermes news, Director Shane Cooke sold 61,200 shares of the firm’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $34.57, for a total value of $2,115,684.00. Following the completion of the transaction, the director owned 103,744 shares of the company’s stock, valued at approximately $3,586,430.08. This trade represents a 37.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Craig C. Hopkinson sold 9,000 shares of the business’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $33.93, for a total transaction of $305,370.00. Following the sale, the executive vice president directly owned 57,740 shares in the company, valued at $1,959,118.20. This trade represents a 13.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 148,148 shares of company stock worth $5,028,378. 4.40% of the stock is owned by insiders.
Institutional Inflows and Outflows
A number of hedge funds have recently modified their holdings of the company. Capital Fund Management S.A. acquired a new stake in Alkermes during the 2nd quarter valued at approximately $1,142,000. Public Sector Pension Investment Board raised its holdings in shares of Alkermes by 11.6% during the third quarter. Public Sector Pension Investment Board now owns 710,700 shares of the company’s stock worth $21,321,000 after purchasing an additional 73,787 shares during the last quarter. New York State Common Retirement Fund lifted its position in Alkermes by 38.9% during the third quarter. New York State Common Retirement Fund now owns 195,999 shares of the company’s stock valued at $5,880,000 after purchasing an additional 54,915 shares during the period. Robeco Institutional Asset Management B.V. lifted its position in Alkermes by 18.6% during the third quarter. Robeco Institutional Asset Management B.V. now owns 134,387 shares of the company’s stock valued at $4,032,000 after purchasing an additional 21,067 shares during the period. Finally, Allianz Asset Management GmbH boosted its holdings in Alkermes by 3,908.2% in the third quarter. Allianz Asset Management GmbH now owns 524,795 shares of the company’s stock valued at $15,744,000 after purchasing an additional 511,702 shares during the last quarter. 95.21% of the stock is owned by institutional investors and hedge funds.
Alkermes Trading Down 5.4%
The firm has a 50-day simple moving average of $31.38 and a two-hundred day simple moving average of $30.17. The company has a market capitalization of $5.22 billion, a price-to-earnings ratio of 15.53 and a beta of 0.49.
Alkermes Company Profile
Alkermes plc is a biopharmaceutical company focused on developing innovative medicines to address unmet needs in the central nervous system (CNS). The company applies its proprietary drug delivery technologies and therapeutic expertise to advance treatments for addiction, schizophrenia, bipolar I disorder and depression. Alkermes’ portfolio includes both commercial products and a pipeline of investigational therapies designed to improve patient outcomes and support long-term disease management.
Alkermes’ commercial franchise features several approved products.