Alight (NYSE:ALIT) Sets New 1-Year Low - Here's Why

Key Points

• Alight, Inc. (NYSE: ALIT) shares hit a new 52-week low of $3.28 amid analyst downgrades, with several firms reducing their price targets but maintaining a "buy" rating.
• The company's recent quarterly earnings showed a slight revenue decline, reporting $528 million compared to estimates, while maintaining an EPS of $0.10.
• Alight announced a quarterly dividend of $0.04 per share, representing an annual yield of 4.8%, despite a negative dividend payout ratio.

Alight, Inc. (NYSE:ALIT - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $3.28 and last traded at $3.29, with a volume of 160136 shares traded. The stock had previously closed at $3.34.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on ALIT. Needham & Company LLC cut their price objective on shares of Alight from $8.00 to $6.00 and set a "buy" rating on the stock in a research report on Wednesday, August 6th. UBS Group reduced their price target on Alight from $10.00 to $6.50 and set a "buy" rating on the stock in a research report on Wednesday, August 6th. Finally, Wedbush reduced their price target on Alight from $9.00 to $7.00 and set an "outperform" rating on the stock in a research report on Wednesday, August 6th. Six equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, Alight presently has an average rating of "Buy" and a consensus price target of $8.75.

Alight Stock Down 0.1%

The business has a fifty day moving average price of $4.29 and a two-hundred day moving average price of $5.10. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.16 and a quick ratio of 1.16. The firm has a market capitalization of $1.80 billion, a price-to-earnings ratio of -1.51 and a beta of 1.02.

Alight (NYSE:ALIT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $0.10 earnings per share for the quarter, meeting analysts' consensus estimates 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 analyst estimates of $525.26 million. During the same period in the prior year, the company earned $0.05 earnings per share. The company'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. On average, equities analysts expect that Alight, Inc. will post 0.54 earnings per share for the current year.

Alight Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were given a dividend of $0.04 per share. The ex-dividend date was Tuesday, September 2nd. This represents a $0.16 dividend on an annualized basis and a yield of 4.8%. Alight's payout ratio is currently -7.24%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ALIT. Nomura Holdings Inc. acquired a new position in Alight during the second quarter valued at $32,050,000. Norges Bank purchased a new stake in shares of Alight in the second quarter worth about $28,596,000. Man Group plc grew its stake in shares of Alight by 155.4% during the 2nd quarter. Man Group plc now owns 3,830,799 shares of the company's stock worth $21,682,000 after purchasing an additional 2,331,077 shares during the period. American Century Companies Inc. grew its stake in shares of Alight by 50.4% during the 1st quarter. American Century Companies Inc. now owns 6,920,646 shares of the company's stock worth $41,039,000 after purchasing an additional 2,319,685 shares during the period. Finally, Alberta Investment Management Corp acquired a new stake in shares of Alight during the 2nd quarter worth approximately $12,028,000. 96.74% of the stock is currently owned by institutional investors and hedge funds.

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.