Allurion Soared Over 200% Today, But is the Weight-Loss Stock a Buy?

Allurion (ALUR), valued at all of $9.59 million by market cap, has exploded higher in early trading, up more than 200% to test the waters above $11 per share. Investors are cheering Thursday’s news that the Massachusetts-based company will conduct a clinical study to combine their gastric balloon-based Allurion Program with GLP-1 agonists to enhance muscle mass retention during weight loss.

“The goal of our study would be to prove that, by combining the Allurion Balloon and Allurion Virtual Care Suite with GLP-1 therapy, patients can lose significant weight while increasing muscle mass and improving overall body composition," explained founder and CEO Dr. Shantanu Gaur in a press release. “We are optimistic that this would be a significant addition to the possibilities of GLP-1 therapies and, if proven, could become the gold standard for obesity care.”

Separately, ALUR said this morning they have entered a securities purchase agreement to raise approximately $7.4 million for working capital and general corporate purposes. This is part of their strategy to improve financial stability amid cash burn challenges. The offering is priced at $6.00 per share, well below today’s early high of $16.81.

ALUR stock is now looking to take out resistance at its 50-day moving average on heavy volume, though the round $20 level remains a serious technical obstacle. The shares have tumbled 87.8% over the past 52 weeks.

Analysts remain largely optimistic on the underperforming weight-loss stock. With four analysts in coverage, the average rating is a “Strong Buy,” and the average price target of $28.67 suggests additional upside potential of about 150% from current prices.