Alight (NYSE:ALIT) Sets New 12-Month Low - Time to Sell?

Key Points

• Alight, Inc. (NYSE:ALIT) has reached a new 52-week low, trading as low as $4.09 and last at $4.20, down from a previous close of $5.13.
• Investment analysts have provided mixed ratings, with one hold rating and six buy ratings; the average target price is $9.86, significantly above the current trading price.
• Alight recently declared a quarterly dividend of $0.04 per share, yielding 3.8%, despite a negative dividend payout ratio of -114.29%.

Alight, Inc. (NYSE:ALIT - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $4.09 and last traded at $4.20, with a volume of 31738068 shares. The stock had previously closed at $5.13.

Analysts Set New Price Targets

Several equities analysts have weighed in on ALIT shares. Wedbush dropped their target price on Alight from $9.00 to $7.00 and set an "outperform" rating for the company in a research report on Wednesday. UBS Group lowered their price objective on shares of Alight from $10.00 to $6.50 and set a "buy" rating for the company in a research note on Wednesday. Finally, Needham & Company LLC cut their target price on shares of Alight from $8.00 to $6.00 and set a "buy" rating on the stock in a research note on Wednesday. One investment analyst has rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $8.94.

Alight Stock Down 8.4%

The company has a debt-to-equity ratio of 0.64, a current ratio of 1.16 and a quick ratio of 1.18. The company has a market cap of $2.14 billion, a PE ratio of -1.80 and a beta of 1.00. The business's 50 day moving average is $5.46 and its 200-day moving average is $5.78.

Alight (NYSE:ALIT - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.10 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.10. The business had revenue of $528.00 million during the quarter, compared to analysts' expectations of $525.26 million. Alight had a negative net margin of 50.37% and a positive return on equity of 6.26%. The company's revenue for the quarter was down 1.9% on a year-over-year basis. During the same period in the previous year, the company earned $0.05 EPS. As a group, analysts predict that Alight, Inc. will post 0.54 EPS for the current year.

Alight Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.04 per share. This represents a $0.16 annualized dividend and a dividend yield of 4.0%. The ex-dividend date of this dividend is Tuesday, September 2nd. Alight's dividend payout ratio is currently -7.24%.

Insider Activity at Alight

In other Alight news, Director David D. Guilmette bought 50,000 shares of the business's stock in a transaction dated Tuesday, May 20th. The shares were acquired at an average price of $5.69 per share, with a total value of $284,500.00. Following the transaction, the director owned 600,750 shares of the company's stock, valued at approximately $3,418,267.50. The trade was a 9.08% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 1.93% of the company's stock.

Hedge Funds Weigh In On Alight

Several hedge funds have recently added to or reduced their stakes in ALIT. Strs Ohio acquired a new stake in shares of Alight in the 1st quarter valued at about $25,000. CWM LLC lifted its stake in Alight by 364.8% in the first quarter. CWM LLC now owns 5,104 shares of the company's stock valued at $30,000 after buying an additional 4,006 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Alight by 82.8% in the first quarter. Caitong International Asset Management Co. Ltd now owns 5,184 shares of the company's stock valued at $31,000 after acquiring an additional 2,348 shares during the period. GAMMA Investing LLC grew its position in shares of Alight by 5,505.8% during the first quarter. GAMMA Investing LLC now owns 7,792 shares of the company's stock worth $46,000 after acquiring an additional 7,653 shares during the last quarter. Finally, Public Employees Retirement System of Ohio grew its position in shares of Alight by 40.8% during the fourth quarter. Public Employees Retirement System of Ohio now owns 7,101 shares of the company's stock worth $49,000 after acquiring an additional 2,059 shares during the last quarter. 96.74% of the stock is currently owned by hedge funds and other institutional investors.

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.