Alkermes Plunges as Bearish Signals Dominate

Market Snapshot

Takeaway: AlkermesALKS-- (ALKS.O) has seen a price drop of -11.09% in recent weeks, with mixed signals from analysts and weak technical indicators. Current stance: caution advised.

News Highlights

Recent headlines paint a mixed picture of the broader market but offer little direct relevance to Alkermes. Here's what's caught attention:

• Regeneron's positive COPD results in late May highlighted promising drug developments, but the company’s shares still fell. This points to market skepticism around even strong trial outcomes.
• China’s manufacturing sector contracted slightly in May, though the pace of decline slowed. A deal with the U.S. over tariffs has raised hopes for improvement, but such macroeconomic shifts are slow to affect individual stocks like Alkermes.
• REX Shares’ new crypto ETF plans highlight growing interest in crypto asset exposure. While not directly related to Alkermes, these filings indicate broader risk appetite that could affect pharmaceuticals or biotech sectors indirectly if markets rally.

Analyst Views & Fundamentals

Analysts are split on Alkermes, with one calling it a “Buy” and another suggesting an “Underperform.” Here’s the breakdown:

• Average rating (simple mean): 3.50
• Weighted rating (performance-adjusted): 1.04
• Consistency: low — “There are differences” in ratings
• Price alignment: mixed — current price is falling (-11.09%) and aligns with the pessimistic weighted expectations

Key Fundamental Factors

• Profit-Market Value (Profit-MV): 0.62 – Internal diagnostic score: 2
• Quick Ratio: 3.27% – Internal diagnostic score: 2
• Return on Equity (ROE) vs. Price-to-Book (PB-ROE): 107.10% – Internal diagnostic score: 2
• Asset-Market Value (Asset-MV): -49.43% – Internal diagnostic score: 2
• Interest Coverage Ratio: 1,565.43% – Internal diagnostic score: 2
• Cost of Sales Ratio: 13.77% – Internal diagnostic score: 3
• Revenue-Market Value (Revenue-MV): -33.96% – Internal diagnostic score: 3

Money-Flow Trends

Big money is cautious, with negative overall fund flow trends across all categories. Notably:

• Overall inflow ratio: 47.17%
• Large-cap inflow ratio: 49.87% – still slightly positive but weak
• Block trading inflow ratio: 46.40% – suggesting institutional investors are also net sellers

While retail flows (Small trend) are also negative (-49.5%), the medium and large trends are slightly more positive. However, these are not enough to offset the overall bearish sentiment.

Key Technical Signals

From a technical standpoint, Alkermes is in a very weak position. Internal diagnostic score: 1.25 — the lowest of any category we review here.

• MACD Death Cross: 1.22 – a strong bearish signal
• RSI Overbought: 1.19 – suggests a possible reversal
• Inverted Hammer: 1.00 – another bearish reversal pattern
• Bullish Engulfing: 1.59 – this is the only mildly positive signal, but it's outweighed by the others

Recent Chart Patterns

• 2026-02-20: Bullish Engulfing — this may have briefly suggested a turnaround, but it was quickly invalidated
• 2026-02-13: Inverted Hammer — a classic bearish reversal pattern
• 2026-02-10: MACD Death Cross — another strong bearish signal

Key technical insights:

• Bearish signals (4) are dominant over bullish ones (0)
• Market activity is relatively quiet, with few recent signals
• Overall trend suggests weakness — “It is suggested to avoid it”

Conclusion

Alkermes appears to be in a very weak position across all fronts — technical, fundamental, and market flow. With an internal diagnostic score of 1.25, it’s one of the least attractive stocks on our radar. Analysts are also divided, with one of the two recent ratings having a poor historical performance record. Given the lack of positive momentum and the prevalence of bearish signals, investors may want to consider waiting for a more favorable entry point or avoid the stock altogether for now.