Alx Oncology: A Study in Contrasting Market Sentiment

Shares of clinical-stage biopharmaceutical firm Alx Oncology Holdings Inc. are navigating a complex landscape defined by promising clinical developments and a simultaneous rise in analyst caution. The investment thesis is being pulled in opposing directions: fresh trial data provides fuel for optimism, while a recent downgrade to a "Sell" rating introduces a note of skepticism. Against this backdrop, a significant insider purchase by the CEO signals strong internal conviction.

The company's clinical progress forms a core part of the investment narrative. Its lead asset, evorpacept, continues to generate noteworthy data across multiple trials:

• In December 2025, Alx Oncology reported positive Phase 2 results for evorpacept in combination therapy for indolent B-cell non-Hodgkin lymphoma.
• Within the ASPEN-06 trial for HER2-positive gastric cancer, the evorpacept combination achieved a 65.0% response rate in patients with high CD47 expression. This compares favorably to the 26.1% response rate observed with standard therapy alone.
• The clinical calendar for 2026 is set to provide further catalysts. Initial safety data for the antibody-drug conjugate ALX2004 is anticipated in the first half of the year, with interim results from the ASPEN breast cancer study expected in the third quarter.

Financial Discipline and Analyst Divergence

Alx Oncology's third-quarter 2025 results presented a mixed financial picture. The company posted a loss per share (EPS) of ($0.41), missing the consensus estimate of ($0.37). However, management demonstrated improved cost control, reducing its GAAP net loss to ($22.1) million from ($30.7) million in the comparable prior-year period. This reduction was driven primarily by strategically lowered research and development expenditures. This financial discipline has extended the company's cash runway into the first quarter of 2027.

Should investors sell immediately? Or is it worth buying Alx Oncology Holdings ?

Analyst opinions on the stock currently reflect a clear split. The broader consensus recommendation remains a "Moderate Buy," based on ratings from five analysts advising "Buy," one suggesting "Hold," and one recommending "Sell." The average 12-month price target stands at $3.50. Notably, Jefferies recently initiated coverage with a $4.00 price target, implying substantial upside from the current trading level near $1.47. This optimistic view is countered by services like Wall Street Zen, which downgraded the stock to "Sell," aligning it with a "Sell (D-)" rating from Weiss Ratings.

Insider Confidence Amid Market Volatility

Trading in Alx Oncology shares has been characterized by significant volatility, with an average daily price movement of 7.22% over the past week. The stock's 50-day moving average is $1.52, while its 200-day moving average sits at $1.06. A notable vote of confidence came from within the company in September 2025, when CEO Jason Lettmann purchased over 71,000 shares, increasing his stake by more than 30%. Institutional investors maintain a dominant position, holding approximately 98% of the company's shares.

The upcoming quarterly report for Q4 2025 and the scheduled clinical data readouts in 2026 will serve as the next critical tests for Alx Oncology as it seeks to align its clinical promise with sustained market confidence.