Why Is ALUMIS INC EQUITY (ALMS) Stock Up Today?

Why ALMS stock is up today

Alumis Inc (ALMS) shares surged 14.69% to $11.87 in a volatile session that followed a sharp decline in recent weeks. The stock opened lower but reversed sharply in afternoon trading, reaching a session high of $11.89. The rally appears to be driven by a mix of analyst activity and retail interest, as well as a reaction to recent downgrades and price target cuts.

What Happened

Guggenheim downgraded Alumis to Neutral from Buy after a mid-stage trial setback for the company’s systemic lupus erythematosus (SLE) candidate. This followed a similar downgrade from Morgan Stanley, which cut its price target for Alumis after the lupus trial failure. Oppenheimer also lowered its price target to $37 from $55, and Morgan Stanley reduced its target to $29 from $39. Meanwhile, H.C. Wainwright upgraded Alumis to Buy from Neutral, adding to the mixed analyst sentiment. The stock has been under pressure in recent sessions, having fallen 50.6% over the last eight days. The intraday reversal suggests a short-covering or speculative rebound.

What The Data Shows

The stock opened at $10.25, a 1.0% gap down from the prior close, and traded as low as $10.10 before climbing to a high of $11.89. Volume has reached 3.4 million shares, more than double the 3-month daily average. Unusual options activity has also been noted, with $140K in call premium and $135K in put premium traded. The stock is currently trading near the upper end of its 52-week range of $3.76 to $31.35. Recent insider transactions show multiple executives selling shares, with total sales of $534K reported in the last 90 days.

What To Watch

Alumis is not scheduled to report earnings in the near term. Investors should monitor the breadth of analyst coverage and any further updates on the lupus drug development.