Insider Selling: Avalo Therapeutics (NASDAQ:AVTX) Insider Sells 75,063 Shares of Stock

May 8, 2026 by InsiderTrades.com

Key Points

Insider Paul Varki sold 75,063 shares on May 6 under a pre‑arranged Rule 10b5‑1 plan at an average $20.17 for about $1.514M, reducing his direct holding by ~95% to 3,634 shares.
Avalo reported positive Phase 2 LOTUS topline results and priced an underwritten $375M public offering to fund a planned registrational Phase 3, prompting analyst upgrades and a stock rally but raising near‑term dilution and volatility concerns.

Avalo Therapeutics, Inc. (NASDAQ:AVTX - Get Free Report) insider Paul Varki sold 75,063 shares of the firm's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $20.17, for a total transaction of $1,514,020.71. Following the transaction, the insider directly owned 3,634 shares in the company, valued at approximately $73,297.78. The trade was a 95.38% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Avalo Therapeutics Trading Up 4.9%

AVTX stock opened at $22.87 on Friday. The firm's 50-day moving average is $15.61 and its two-hundred day moving average is $16.35. The company has a market capitalization of $610.86 million, a price-to-earnings ratio of -3.99 and a beta of 0.78. Avalo Therapeutics, Inc. has a 52 week low of $3.39 and a 52 week high of $24.27.

Avalo Therapeutics (NASDAQ:AVTX - Get Free Report) last posted its quarterly earnings data on Monday, March 23rd. The company reported ($0.37) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.54) by $1.17. The company had revenue of $0.06 million during the quarter, compared to the consensus estimate of ($0.21) million. On average, equities research analysts predict that Avalo Therapeutics, Inc. will post -3.38 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on AVTX shares. Citizens Jmp lifted their price target on Avalo Therapeutics from $52.00 to $62.00 and gave the company a "market outperform" rating in a research report on Wednesday. Citigroup restated an "outperform" rating on shares of Avalo Therapeutics in a report on Wednesday. BTIG Research raised their target price on Avalo Therapeutics from $40.00 to $58.00 and gave the company a "buy" rating in a research note on Wednesday. Wolfe Research assumed coverage on Avalo Therapeutics in a report on Thursday, April 9th. They set an "outperform" rating and a $48.00 target price on the stock. Finally, Guggenheim started coverage on shares of Avalo Therapeutics in a research report on Monday, February 2nd. They issued a "buy" rating and a $50.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $48.14.

View Our Latest Analysis on AVTX

Key Headlines Impacting Avalo Therapeutics

Here are the key news stories impacting Avalo Therapeutics this week:

Positive Sentiment: Positive Phase 2 LOTUS topline results announced for abdakibart (met primary HiSCR75 endpoint at Week 16 for both doses, benefits on key secondaries and a favorable safety profile); company plans to advance to registrational Phase 3 — this is the primary catalyst behind the rally as it materially derisks the program's clinical path. QuiverQuant: LOTUS results & financing
Positive Sentiment: Several firms raised ratings/targets after the data: BTIG ($58 PT), Citizens JMP (to $62), Wedbush (to $40) — analyst upgrades amplify buying interest and signal stronger Street conviction on upside if Phase 3 succeeds. BTIG price target raise
Neutral Sentiment: Underwritten public offering priced to raise roughly $375M (19.73M shares + 1.4M pre‑funded warrants at $17.75) to fund abdakibart Phase 3 and corporate purposes — materially increases cash runway (positive for program execution) but will change capitalization. Offering expected to close May 7, 2026. GlobeNewswire: $375M offering
Negative Sentiment: Planned share sale implies near‑term dilution for existing holders; depending on takeup and any exercise of underwriter's option, EPS/ownership will be diluted and could cap upside until Phase 3 readouts. QuiverQuant: offering details & implications
Negative Sentiment: Insider selling disclosed — Paul Varki sold 75,063 shares under a pre‑arranged Rule 10b5‑1 plan (filed with the SEC); large insider sales can be interpreted negatively by some investors despite 10b5‑1 context. SEC Form 4: Varki sale
Negative Sentiment: Unusually large put option activity was reported (heavy put purchases), which can signal hedging or speculative bets against the stock and may add volatility. Options flow report

Institutional Investors Weigh In On Avalo Therapeutics

Large investors have recently modified their holdings of the stock. Patient Square Capital LP purchased a new position in Avalo Therapeutics in the 3rd quarter worth about $1,271,000. Cantor Fitzgerald L. P. purchased a new stake in Avalo Therapeutics during the third quarter valued at about $1,083,000. Boothbay Fund Management LLC lifted its stake in Avalo Therapeutics by 1,916.6% during the third quarter. Boothbay Fund Management LLC now owns 228,297 shares of the company's stock valued at $2,902,000 after buying an additional 216,976 shares in the last quarter. Ally Bridge Group NY LLC acquired a new position in shares of Avalo Therapeutics in the third quarter worth about $2,264,000. Finally, Aberdeen Group plc acquired a new position in shares of Avalo Therapeutics in the third quarter worth about $925,000. 87.06% of the stock is owned by institutional investors.

About Avalo Therapeutics

(Get Free Report)

Avalo Therapeutics is a clinical-stage biotechnology company focused on the discovery, development and commercialization of novel therapies for cardiometabolic, fibrotic and inflammatory diseases. The company's proprietary drug-design platform enables the creation of long-acting prodrugs with optimized pharmacokinetic profiles, aiming to improve efficacy, safety and patient adherence. By leveraging this technology, Avalo seeks to address key drivers of disease progression that remain underserved by existing treatments.

Its lead programs include AVTX-002, a first-in-class prodrug candidate designed to inhibit angiotensinogen for the treatment of hypertension and related cardiovascular disorders, and AVTX-006, an early-stage candidate targeting pathways implicated in fibrosis and metabolic dysfunction.