Alight, Inc. (NYSE:ALIT) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Alight, Inc. has received a consensus recommendation of "Moderate Buy" with six analysts issuing buy ratings and one rating the stock a sell.
• The average twelve-month price target for Alight is $8.75, although multiple analysts have recently lowered their individual targets to between $6.00 and $7.00.
• Alight recently announced a quarterly dividend of $0.04, which corresponds to a 5.0% dividend yield despite a negative payout ratio.

Alight, Inc. (NYSE:ALIT - Get Free Report) has received an average recommendation of "Moderate Buy" from the seven research firms that are currently covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating and six have issued a buy rating on the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $8.75.

A number of equities analysts recently weighed in on the stock. Wedbush lowered their target price on shares of Alight from $9.00 to $7.00 and set an "outperform" rating for the company in a research note on Wednesday, August 6th. Needham & Company LLC decreased their price target on Alight from $8.00 to $6.00 and set a "buy" rating for the company in a report on Wednesday, August 6th. UBS Group dropped their price objective on Alight from $10.00 to $6.50 and set a "buy" rating on the stock in a research note on Wednesday, August 6th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Alight in a research note on Wednesday.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ALIT. Stanley Capital Management LLC raised its holdings in shares of Alight by 47.6% during the first quarter. Stanley Capital Management LLC now owns 3,100,835 shares of the company's stock valued at $18,388,000 after purchasing an additional 1,000,000 shares during the period. Teacher Retirement System of Texas acquired a new stake in shares of Alight in the 1st quarter valued at about $428,000. Charles Schwab Investment Management Inc. increased its position in Alight by 9.3% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 5,936,028 shares of the company's stock valued at $35,201,000 after buying an additional 506,666 shares in the last quarter. Vanguard Group Inc. raised its stake in Alight by 3.8% during the 1st quarter. Vanguard Group Inc. now owns 42,429,297 shares of the company's stock worth $251,606,000 after buying an additional 1,548,078 shares during the period. Finally, Clearline Capital LP boosted its holdings in Alight by 3.3% in the first quarter. Clearline Capital LP now owns 5,038,659 shares of the company's stock worth $29,879,000 after acquiring an additional 162,732 shares in the last quarter. 96.74% of the stock is owned by institutional investors.

Alight Stock Performance

NYSE ALIT opened at $3.19 on Thursday. The company has a market capitalization of $1.72 billion, a price-to-earnings ratio of -1.44 and a beta of 1.02. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.64. Alight has a twelve month low of $3.05 and a twelve month high of $8.93. The stock has a fifty day simple moving average of $3.72 and a 200 day simple moving average of $4.87.

Alight (NYSE:ALIT - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.10 EPS for the quarter, meeting the consensus estimate of $0.10. Alight had a positive return on equity of 6.26% and a negative net margin of 50.37%.The business had revenue of $528.00 million for the quarter, compared to analysts' expectations of $525.26 million. During the same period in the prior year, the business posted $0.05 earnings per share. The firm's revenue was down 1.9% on a year-over-year basis. Alight has set its FY 2025 guidance at 0.580-0.640 EPS. Sell-side analysts expect that Alight will post 0.54 EPS for the current year.

Alight Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were paid a $0.04 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $0.16 annualized dividend and a dividend yield of 5.0%. Alight's payout ratio is currently -7.24%.

Alight Company Profile

Alight, Inc provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software.

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