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On February 23, 2026 Gilead Sciences announced a cash acquisition of Arcellx at $115 per share plus a $5 contingent value right; multiple regulatory clearances followed and Gilead extended its tender offer into late April 2026. Form 4 filings show a senior Arcellx executive sold shares in late February, and a shareholder-class-action investigation opened in late February tied to the deal announcement.
Technical Analysis
ADX & Directional Indicators: ADX at 68.57 signals a very strong trend environment. DI+ registers 49.07 and is decreasing, which indicates bullish momentum losing strength; DI- at 8.05 is decreasing, which reduces bearish pressure but leaves DI+ dominant for now. The combination suggests the current directional strength may contract even while the underlying trend remains strong.
MACD: MACD of 2.82 is decreasing and sits below the signal line (3.85), which signals a bearish momentum shift despite positive absolute MACD value; this aligns with a cooling of upward momentum relative to recent levels.
MRO: MRO reads 25.45 and is decreasing; the positive MRO implies price sits above the model target and presents downside pressure, with the decreasing MRO indicating that potential for mean reversion has begun to diminish.
RSI & Overbought Condition: RSI at 73.91 and rising denotes an overbought state and elevates the probability of a short-term pullback.
Price vs Moving Averages & Volatility: Last close $115.05 sits above the 20-day average ($114.85), 50-day ($104.27) and 200-day ($82.05); the 12-day EMA is rising. Bollinger bands remain extremely tight (~$114.59–$115.12) indicating low intraday volatility at the current level. Volume (475,563) trails the 10-day and longer-term averages, suggesting limited buying breadth behind the recent price level.
Fundamental Analysis
Profitability & Cashflow: Net loss of $58,112,000 and EBITDA of -$56,443,000 reflect ongoing operating losses; operating cash flow stands at -$58,175,000 and free cash flow at -$58,939,000. Cash and short-term investments total $450,334,000, and the current ratio equals 4.44, indicating a strong near-term liquidity position relative to current liabilities ($104,202,000).
Margins & Trends: EBIT margin measures -35.12% with a QoQ improvement of 2.12 percentage points and a YoY improvement of 10.76 percentage points. Compared with the industry peer mean (-0.75% EBIT margin), Arcellx’s EBIT margin sits well below the industry peer mean and inside the peer low–high range.
Revenue & R&D: Total revenue recorded $1,654,000 with QoQ revenue growth of 93.07% and YoY revenue growth of 61.01%; R&D expense equals $34,095,000, reflecting a development-stage cost base that dwarfs current top-line receipts.
Valuation Multiples: Price-to-book at 10.67 sits above the industry peer mean (book multiple ~5.19). P/S at 2,596.34 and a negative P/E reflect very high market valuation relative to current revenue and negative earnings. Forward multiples remain negative or extreme, consistent with a transaction premium embedded in market pricing.
Balance Sheet Structure: Total debt approximates $51,919,000 (debt-to-assets ~8.6%), indicating low leverage. Interest income exceeds interest expense, producing an interest coverage ratio reported as very high in nominal terms. Return on equity and assets remain negative (ROE -14.44%, ROA -9.23%), consistent with development-stage losses.
Valuation Conclusion: The current valuation as determined by WMDST classifies the stock as over-valued, driven by a market capitalization near $4.29 billion against minimal revenue and persistent operating losses; liquidity and low leverage mitigate immediate solvency risk but do not justify the multiple absent near-term revenue conversion or deal completion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-26 |
| NEXT REPORT DATE: | 2026-05-28 |
| CASH FLOW | Begin Period Cash Flow | $ 81.6 M |
| Operating Cash Flow | $ -58.17 M | |
| Capital Expenditures | $ -764.00 K | |
| Change In Working Capital | $ -17.93 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 1.3 M | |
| End Period Cash Flow | $ 82.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.7 M | |
| Forward Revenue | $ 178.5 K | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 1.6 M | |
| Depreciation and Amortization | $ 1.6 M | |
| Research and Development | $ 34.1 M | |
| Total Operating Expenses | $ 65.3 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | $ -56.44 M | |
| EBIT | $ -58.08 M | |
| Operating Income | $ -63.68 M | |
| Interest Income | $ 5.6 M | |
| Interest Expense | $ -12.00 K | |
| Net Interest Income | $ 5.6 M | |
| Income Before Tax | $ -58.07 M | |
| Tax Provision | $ 40.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ -58.11 M | |
| Net Income From Continuing Operations | $ -58.11 M | |
| EARNINGS | ||
| EPS Estimate | $ -1.05 | |
| EPS Actual | $ -1.01 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 3.81 % | |
| Forward EPS | $ -0.43 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 604.0 M | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 402.4 M | |
| Total Current Assets | $ 462.2 M | |
| Cash and Short-Term Investments | $ 450.3 M | |
| Cash | $ 80.3 M | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | $ 5.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 5.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 104.2 M | |
| Net Debt | — | |
| Total Debt | $ 51.9 M | |
| Total Liabilities | $ 201.6 M | |
| EQUITY | ||
| Total Equity | $ 402.4 M | |
| Retained Earnings | $ -725.76 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.95 | |
| Shares Outstanding | 57.929 M | |
| Revenue Per-Share | $ 0.03 | |
| VALUATION | Market Capitalization | $ 4.3 B |
| Enterprise Value | $ 3.9 B | |
| Enterprise Multiple | -69.024 | |
| Enterprise Multiple QoQ | -11.983 % | |
| Enterprise Multiple YoY | -8.634 % | |
| Enterprise Multiple IPRWA | high: 67.346 median: 47.169 mean: 12.483 ACLX: -69.024 low: -114.076 |
|
| EV/R | 2355.456 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.501 | |
| Asset To Liability | 2.995 | |
| Debt To Capital | 0.114 | |
| Debt To Assets | 0.086 | |
| Debt To Assets QoQ | 8.865 % | |
| Debt To Assets YoY | 13.061 % | |
| Debt To Assets IPRWA | high: 1.032 mean: 0.121 ACLX: 0.086 median: 0.003 low: 0.0 |
|
| Debt To Equity | 0.129 | |
| Debt To Equity QoQ | 9.812 % | |
| Debt To Equity YoY | 8.519 % | |
| Debt To Equity IPRWA | high: 1.524 mean: 0.136 ACLX: 0.129 median: 0.005 low: -0.893 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 10.673 | |
| Price To Book QoQ | 1.401 % | |
| Price To Book YoY | 26.383 % | |
| Price To Book IPRWA | high: 19.432 ACLX: 10.673 median: 6.164 mean: 5.19 low: -10.511 |
|
| Price To Earnings (P/E) | -73.397 | |
| Price To Earnings QoQ | -9.512 % | |
| Price To Earnings YoY | -10.229 % | |
| Price To Earnings IPRWA | high: 71.892 mean: -21.065 median: -32.121 ACLX: -73.397 low: -107.019 |
|
| PE/G Ratio | -36.335 | |
| Price To Sales (P/S) | 2596.336 | |
| Price To Sales QoQ | 176.956 % | |
| Price To Sales YoY | 931.982 % | |
| Price To Sales IPRWA | ACLX: 2596.336 high: 773.807 mean: 49.096 median: 20.207 low: -75.758 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -187.856 | |
| Forward PE/G | -92.998 | |
| Forward P/S | 26084.157 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.062 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.003 | |
| Asset Turnover Ratio QoQ | -66.108 % | |
| Asset Turnover Ratio YoY | -87.282 % | |
| Asset Turnover Ratio IPRWA | high: 0.406 mean: 0.117 median: 0.109 ACLX: 0.003 low: -0.066 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 937.301 mean: 230.304 median: 192.562 ACLX: 0 low: -852.294 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.005 | |
| CapEx To Revenue | -0.462 | |
| CapEx To Depreciation | -0.466 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 402.4 M | |
| Net Invested Capital | $ 402.4 M | |
| Invested Capital | $ 402.4 M | |
| Net Tangible Assets | $ 402.4 M | |
| Net Working Capital | $ 358.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 4.322 | |
| Current Ratio | 4.435 | |
| Current Ratio QoQ | 11.236 % | |
| Current Ratio YoY | -7.189 % | |
| Current Ratio IPRWA | high: 27.397 ACLX: 4.435 mean: 3.911 median: 2.827 low: 0.027 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -0.92 | |
| Cost Of Debt | -0.018 % | |
| Interest Coverage Ratio | 4840.333 | |
| Interest Coverage Ratio QoQ | -204.129 % | |
| Interest Coverage Ratio YoY | -174.354 % | |
| Interest Coverage Ratio IPRWA | ACLX: 4840.333 high: 671.002 mean: 40.497 median: 3.11 low: -1571.333 |
|
| Operating Cash Flow Ratio | -0.529 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -7.917 % | |
| Revenue Growth | -66.579 % | |
| Revenue Growth QoQ | 93.067 % | |
| Revenue Growth YoY | 61.006 % | |
| Revenue Growth IPRWA | high: 443.939 % mean: 13.38 % median: 3.233 % ACLX: -66.579 % low: -242.388 % |
|
| Earnings Growth | 2.02 % | |
| Earnings Growth QoQ | -62.023 % | |
| Earnings Growth YoY | -97.514 % | |
| Earnings Growth IPRWA | high: 204.0 % ACLX: 2.02 % median: -14.286 % mean: -16.994 % low: -237.5 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | -3511.729 % | |
| EBIT Margin QoQ | 211.567 % | |
| EBIT Margin YoY | 1076.459 % | |
| EBIT Margin IPRWA | high: 3501.566 % median: 21.25 % mean: -75.477 % ACLX: -3511.729 % low: -7602.597 % |
|
| Return On Sales (ROS) | -3850.242 % | |
| Return On Sales QoQ | 208.451 % | |
| Return On Sales YoY | 1189.863 % | |
| Return On Sales IPRWA | high: 1116.376 % median: 27.297 % mean: -84.574 % ACLX: -3850.242 % low: -7602.597 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -58.94 M | |
| Free Cash Flow Yield | -1.372 % | |
| Free Cash Flow Yield QoQ | 28.585 % | |
| Free Cash Flow Yield YoY | 10.914 % | |
| Free Cash Flow Yield IPRWA | high: 21.452 % median: 0.303 % mean: 0.161 % ACLX: -1.372 % low: -51.848 % |
|
| Free Cash Growth | 19.061 % | |
| Free Cash Growth QoQ | -17.438 % | |
| Free Cash Growth YoY | -107.134 % | |
| Free Cash Growth IPRWA | high: 177.21 % ACLX: 19.061 % median: -24.526 % mean: -33.037 % low: -201.25 % |
|
| Free Cash To Net Income | 1.014 | |
| Cash Flow Margin | -3331.258 % | |
| Cash Flow To Earnings | 0.948 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -9.225 % | |
| Return On Assets QoQ | 5.429 % | |
| Return On Assets YoY | 44.615 % | |
| Return On Assets IPRWA | high: 33.814 % median: 1.099 % mean: -2.697 % ACLX: -9.225 % low: -65.985 % |
|
| Return On Capital Employed (ROCE) | -11.622 % | |
| Return On Equity (ROE) | -0.144 | |
| Return On Equity QoQ | 14.129 % | |
| Return On Equity YoY | 39.519 % | |
| Return On Equity IPRWA | high: 0.809 median: 0.039 mean: 0.001 ACLX: -0.144 low: -1.16 |
|
| DuPont ROE | -13.808 % | |
| Return On Invested Capital (ROIC) | -11.405 % | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | -268.963 % | |
| Return On Invested Capital IPRWA | high: 50.944 % median: 3.016 % mean: -0.088 % ACLX: -11.405 % low: -58.737 % |
|