Alset Inc. Shares Rise 1.2% Amid Analyst Downgrades

Shares of Alset Inc. (NASDAQ:AEI) experienced a modest increase of 1.2% during trading on Monday, reaching a high of $2.57 before closing at $2.45. The trading volume was notably lower, with 15,566 shares exchanged, a significant drop of 79% from the average session volume of 75,273 shares. The stock had previously closed at $2.42.

Analysts Adjust Ratings on Alset

Recent reports from various research firms have raised concerns regarding the company’s performance. On October 4, 2023, analysts at Wall Street Zen downgraded Alset’s stock to a “sell” rating. Following this, Weiss Ratings reaffirmed a “sell (d-)” rating in a note issued on October 8. Currently, MarketBeat data indicates that the stock holds an average rating of “Sell” from analysts.

Despite the recent uptick in share price, the firm’s financial indicators present a more cautious outlook. Alset’s 50-day moving average price stands at $2.70, while the 200-day moving average is at $1.65. The company has a market capitalization of $95.74 million, a negative price-to-earnings ratio of -2.33, and a beta of 1.42.

Alset’s latest quarterly earnings, released on August 14, reported an earnings per share (EPS) of ($0.71) with revenue of $1.10 million. This resulted in a negative return on equity of 14.31% and a net margin of -77.86%.

Insider Transactions and Institutional Investments

In related news, Heng Fai Ambrose Chan, the CEO of Alset, sold 500,000 shares on September 12 at an average price of $2.67, totaling $1,335,000. Following this transaction, Chan retained ownership of 31,322,903 shares, valued at approximately $83,632,151.01. This sale indicates a 1.57% decrease in ownership, as disclosed in filings with the Securities and Exchange Commission (SEC).

Institutional trading activity has also been notable, with Vanguard Group Inc. increasing its stake in Alset by 2,757.1% in the third quarter. According to the latest SEC disclosure, Vanguard acquired an additional 596,572 shares, bringing its total holdings to 618,210 shares, which represent about 1.58% of the company, valued at $1,564,000.

Company insiders currently hold 90.30% of Alset’s shares, indicating a strong internal confidence in the company’s future, despite the recent challenges.

Alset Inc. operates in various sectors, including real estate development, financial services, digital transformation technologies, biohealth activities, and consumer products across the United States, Singapore, Hong Kong, Australia, and South Korea. The company is structured into four segments: Real Estate, Digital Transformation Technology, Biohealth, and Other Business Activities.

As Alset navigates these market dynamics, stakeholders are closely watching its performance amid shifting analyst sentiments and insider trading activities.