The Bearish Case for Alnylam Pharmaceuticals

NASDAQ: ALNY | Alnylam Pharmaceuticals, Inc. News, Ratings, and Charts

ALNY – A head and shoulders pattern has formed in the chart of Alnylam Pharmaceuticals Inc. (ALNY). A breakdown could soon follow. Learn how to profit from this trade.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

A head and shoulders pattern has developed in the chart of Alnylam Pharmaceuticals Inc. (ALNY) and a breakdown is expected soon.

ALNY is a development-stage biopharmaceutical company focused on the development of novel therapeutics based on RNA interference (RNAi). The company’s pipeline of solutions is focused across three therapeutic areas: genetic medicines, cardio-metabolic disease, and hepatic infectious disease.

The company recently posted its latest financial results with earnings well under estimates and down year over year, but revenue outperformed and was up 79.6% from the prior year period. While the company has a broad pipeline of therapeutic candidates, most are in the early stages of development.

ALNY has a strong history of revenue growth, but has not had positive income over the last ten years. Though it does have a strong balance sheet with $1.8 billion in cash at the end of the quarter. While its gross margin is 83.2%, its net margin is a negative 222.2%.

The stock has a high valuation, with a Price to Sales ratio of 35.2 and a Price to Book ratio of 11.8. It has shown bearish short and mid-term momentum, but is up for the year. This has led to a “Neutral” rating in our POWR Ratings system, with a grade of D” in Trade Grade.

Take a look at the 1-year chart of ALNY below with the added notations:

  Chart of ALNY provided by TradingView

Over the past eight months, ALNY has created a major level of support at $120 (green). That line is also the “neckline” for the stock’s head and shoulders pattern (red).

Confirmation of the head and shoulders pattern would occur if ALNY were to break the support, and lower prices would be expected from there.  This bearish pattern implies a short trade to be entered on a break below the $120 neckline.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharpe, CMT

@cmtstockcoach


ALNY shares rose $0.19 (+0.15%) in premarket trading Friday. Year-to-date, ALNY has gained 7.67%, versus a 12.76% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp, CMT


Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ALNYGet RatingGet RatingGet Rating

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!


Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Are Stocks Off to the Races in December?

What propelled stocks (SPY) to new record highs once again to kick off December? And what is the outlook for the end of the year? Plus what stocks are likely to outperform as we turn the page to 2021? The answer to that and others awaits you in this timely market commentary below...

:  |  News, Ratings, and Charts

3 Top Growth Stocks to Buy and Hold for Long Term

Growth stocks generally outperform the broader market in the long run. And the recent sell-off of ‘stay-at-home’ stocks has created a great opportunity to buy at relatively attractive prices some high-growth stocks that were trading at high levels a few months ago. Apple (AAPL), Amazon (AMZN), and Facebook (FB) are examples of three such growth stocks that have plenty of upside from the current levels.

:  |  News, Ratings, and Charts

Swerve to Avoid these 2 Electric Vehicle Stocks in December!

The EV sector is currently witnessing a retreat as several new companies this year have entered the industry via reverse mergers to benefit from surging demand. Hence, weak players like Hyliion Holdings (HYLN) and Kandi Technologies (KNDI) should be avoided in the near-term because they have poor prospects and are susceptible to deeper pullbacks.

:  |  News, Ratings, and Charts

3 Top Airline Stocks to Buy for a Post Pandemic-World

Southwest Airlines Company (LUV), China Southern Airlines Company (ZNH), and Allegiant Travel Company (ALGT) are three top airline stocks that have major upside as pent-up demand for travel is unleashed sometime in 2021.

:  |  News, Ratings, and Charts

Swerve to Avoid these 2 Electric Vehicle Stocks in December!

The EV sector is currently witnessing a retreat as several new companies this year have entered the industry via reverse mergers to benefit from surging demand. Hence, weak players like Hyliion Holdings (HYLN) and Kandi Technologies (KNDI) should be avoided in the near-term because they have poor prospects and are susceptible to deeper pullbacks.

Read More Stories

More Alnylam Pharmaceuticals, Inc. (ALNY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ALNY News