Alight (NYSE:ALIT) Announces Quarterly Earnings Results

Key Points

• Alight beat estimates with $0.06 EPS versus $0.03 expected and revenue of $534.0M (vs. $502.7M expected), but still reported a highly negative net margin of 136.91% despite a positive return on equity.
• Shares rallied about 9.3% to $0.89 on the results amid heavy volume, while analysts have cut ratings/targets and the consensus price target stands at $3.56.
• Several securities class actions have been filed against Alight and multiple law firms are soliciting lead‑plaintiffs ahead of the May 15, 2026 deadline, creating significant legal risk for the company.

Alight (NYSE:ALIT - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $0.06 earnings per share for the quarter, beating analysts' consensus estimates of $0.03 by $0.03, FiscalAI reports. The business had revenue of $534.00 million during the quarter, compared to analysts' expectations of $502.74 million. Alight had a positive return on equity of 9.61% and a negative net margin of 136.91%.

Alight Trading Up 9.3%

Shares of NYSE:ALIT traded up $0.08 during trading on Tuesday, reaching $0.89. The stock had a trading volume of 24,868,705 shares, compared to its average volume of 27,534,580. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.90. The stock has a market cap of $473.03 million, a P/E ratio of -0.15, a PEG ratio of 0.24 and a beta of 1.56. The business has a fifty day moving average price of $0.71 and a 200-day moving average price of $1.57. Alight has a fifty-two week low of $0.48 and a fifty-two week high of $6.11.

Analysts Set New Price Targets

ALIT has been the topic of a number of research reports. Needham & Company LLC cut shares of Alight from a "buy" rating to a "hold" rating in a research note on Thursday, February 19th. DA Davidson reduced their price target on shares of Alight from $6.00 to $5.00 and set a "buy" rating on the stock in a report on Tuesday, February 10th. Bank of America assumed coverage on shares of Alight in a research report on Tuesday, February 17th. They issued an "underperform" rating and a $1.40 price target on the stock. KeyCorp cut shares of Alight from an "overweight" rating to a "sector weight" rating in a research note on Thursday, February 19th. Finally, Citigroup downgraded Alight from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $6.50 to $1.00 in a research report on Friday, February 20th. Three investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Alight presently has an average rating of "Hold" and a consensus price target of $3.56.

Insider Transactions at Alight

In other news, CEO Rohit Verma bought 112,000 shares of the stock in a transaction on Thursday, March 12th. The stock was purchased at an average cost of $0.89 per share, with a total value of $99,680.00. Following the purchase, the chief executive officer owned 1,134,883 shares of the company's stock, valued at approximately $1,010,045.87. The trade was a 10.95% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Insiders have purchased a total of 242,000 shares of company stock worth $201,280 in the last quarter. 1.93% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Alight

Several hedge funds have recently made changes to their positions in the business. Corient Private Wealth LLC grew its position in shares of Alight by 58.1% in the fourth quarter. Corient Private Wealth LLC now owns 58,625 shares of the company's stock valued at $114,000 after purchasing an additional 21,552 shares during the period. Invesco Ltd. lifted its position in Alight by 20.2% during the fourth quarter. Invesco Ltd. now owns 584,213 shares of the company's stock worth $1,139,000 after buying an additional 98,310 shares during the period. Mercer Global Advisors Inc. ADV boosted its stake in Alight by 104.5% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 27,369 shares of the company's stock worth $53,000 after buying an additional 13,988 shares during the last quarter. EP Wealth Advisors LLC acquired a new stake in Alight in the 4th quarter worth about $90,000. Finally, Empowered Funds LLC grew its holdings in Alight by 6.5% in the 4th quarter. Empowered Funds LLC now owns 2,016,544 shares of the company's stock valued at $3,932,000 after buying an additional 123,610 shares during the period. Institutional investors and hedge funds own 96.74% of the company's stock.

Key Stories Impacting Alight

Here are the key news stories impacting Alight this week:

• Neutral Sentiment: Rosen Law Firm and affiliates are reminding ALIT shareholders of the May 15, 2026 lead‑plaintiff deadline and encouraging investors who bought during the class period to secure counsel. Read More.
• Neutral Sentiment: Faruqi & Faruqi, LLP and other firms (Rosen, Gross, Schall, DJS) are issuing similar investor notices about the May 15 lead‑plaintiff deadline and offering consultations — these are procedural alerts that increase public visibility of the litigation. Read More.
• Negative Sentiment: Bronstein, Gewirtz & Grossman says a class action has been filed against Alight and certain officers seeking damages for alleged securities law violations for purchases during the class period — this represents direct litigation exposure. Read More.
• Negative Sentiment: Bernstein Liebhard LLP announces a securities fraud class action has been filed on behalf of ALIT investors covering the same period — additional firms joining or publicizing claims increases the aggregate legal attention and potential settlement pressure. Read More.
• Negative Sentiment: Levi & Korsinsky highlights substantive allegations that Alight previously gave optimistic guidance (mid‑single‑digit revenue growth, a path to 28% margin in 2026, and $1B free cash flow by 2027), then later cancelled the dividend and said it missed internal targets and bookings — these specific allegations (inflated growth/dividend commitments) are the core factual claims that can drive damages and settlement size. Read More.

About Alight

Alight, Inc NYSE: ALIT is a leading provider of cloud-based human capital and financial solutions designed to help organizations and their employees navigate critical life and work events. The company offers a comprehensive suite of services, including payroll administration, benefits enrollment and management, workforce and analytics solutions, health and welfare support, and financial wellness programs. By integrating advanced technology with expert advisory services, Alight aims to simplify the administration of human resources and benefits functions, improve employee engagement and productivity, and drive cost efficiencies for its clients.

Alight's core platform leverages cloud architecture and automation to deliver scalable and secure solutions that address the needs of mid-sized and large enterprises.

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