Alight (NYSE:ALIT) Posts Quarterly Earnings Results, Hits Estimates

Key Points

• Alight Inc. reported quarterly earnings of $0.10 EPS, meeting analysts' estimates, but showed a negative net margin of 2.65% with a revenue decline of 1.9% year-over-year.
• The company declared a quarterly dividend of $0.04, which translates to an annualized yield of 3.8%, with a significant dividend payout ratio of -114.29%.
• Alight's stock has a current price of $4.23, with institutional investors holding 96.74% of the shares and recent analyst ratings reflecting a consensus target price of $9.86.

Alight (NYSE:ALIT - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.10 EPS for the quarter, hitting analysts' consensus estimates of $0.10, Zacks reports. Alight had a negative net margin of 2.65% and a positive return on equity of 5.74%. During the same quarter in the previous year, the business earned $0.05 earnings per share. The business's revenue for the quarter was down 1.9% on a year-over-year basis.

Alight Stock Performance

Shares of NYSE:ALIT traded down $0.90 during trading hours on Tuesday, hitting $4.23. The stock had a trading volume of 8,343,010 shares, compared to its average volume of 7,680,128. The stock's fifty day simple moving average is $5.54 and its 200 day simple moving average is $5.83. Alight has a 1-year low of $4.09 and a 1-year high of $8.93. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.18 and a current ratio of 1.18. The firm has a market capitalization of $2.28 billion, a price-to-earnings ratio of -30.18 and a beta of 1.00.

Alight Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be paid a $0.04 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $0.16 annualized dividend and a dividend yield of 3.8%. Alight's dividend payout ratio (DPR) is presently -114.29%.

Insider Buying and Selling

In other news, Director David D. Guilmette bought 50,000 shares of the company's stock in a transaction that occurred on Tuesday, May 20th. The shares were purchased at an average price of $5.69 per share, for a total transaction of $284,500.00. Following the acquisition, the director directly owned 600,750 shares of the company's stock, valued at $3,418,267.50. The trade was a 9.08% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 1.93% of the company's stock.

Institutional Investors Weigh In On Alight

Several large investors have recently made changes to their positions in ALIT. Royal Bank of Canada grew its holdings in shares of Alight by 3.6% during the 1st quarter. Royal Bank of Canada now owns 159,901 shares of the company's stock valued at $948,000 after purchasing an additional 5,525 shares during the last quarter. AQR Capital Management LLC bought a new position in Alight during the first quarter valued at about $434,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Alight by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 249,753 shares of the company's stock worth $1,481,000 after purchasing an additional 10,893 shares during the period. Jones Financial Companies Lllp boosted its position in shares of Alight by 1,776.2% in the first quarter. Jones Financial Companies Lllp now owns 11,257 shares of the company's stock valued at $67,000 after acquiring an additional 10,657 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Alight by 7.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,027,103 shares of the company's stock valued at $6,091,000 after purchasing an additional 66,771 shares during the last quarter. Institutional investors own 96.74% of the company's stock.

Analyst Upgrades and Downgrades

ALIT has been the topic of several research analyst reports. Needham & Company LLC reissued a "buy" rating and set a $8.00 target price on shares of Alight in a research note on Friday, June 20th. Wedbush cut their price target on Alight from $11.00 to $9.00 and set an "outperform" rating on the stock in a report on Friday, May 9th. One equities research analyst has rated the stock with a hold rating and six have given a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $9.86.

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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