Alight (NYSE:ALIT) Reaches New 12-Month Low on Analyst Downgrade

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) hit a new 52-week low during trading on Wednesday after Wedbush lowered their price target on the stock from $9.00 to $7.00. Wedbush currently has an outperform rating on the stock. Alight 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.

Several other brokerages have also issued reports on ALIT. Needham & Company LLC reduced their price target on Alight from $8.00 to $6.00 and set a "buy" rating for the company in a report on Wednesday. UBS Group reduced their price target on Alight from $10.00 to $6.50 and set a "buy" rating for the company in a report on Wednesday. One equities research analyst has rated the stock with a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $8.94.

Insiders Place Their Bets

In other Alight news, Director David D. Guilmette purchased 50,000 shares of the company's stock in a transaction on Tuesday, May 20th. The shares were bought at an average cost of $5.69 per share, with a total value of $284,500.00. Following the transaction, the director directly owned 600,750 shares in the company, valued at approximately $3,418,267.50. This represents 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. In the last three months, insiders purchased 55,216 shares of company stock valued at $307,636. 1.93% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Starboard Value LP increased its position in shares of Alight by 8.8% during the fourth quarter. Starboard Value LP now owns 47,228,000 shares of the company's stock valued at $326,818,000 after purchasing an additional 3,833,000 shares during the period. Cooper Creek Partners Management LLC increased its position in shares of Alight by 23.1% during the fourth quarter. Cooper Creek Partners Management LLC now owns 17,704,322 shares of the company's stock valued at $122,514,000 after purchasing an additional 3,322,705 shares during the period. J. Goldman & Co LP increased its position in shares of Alight by 105.3% during the fourth quarter. J. Goldman & Co LP now owns 5,774,590 shares of the company's stock valued at $39,960,000 after purchasing an additional 2,961,443 shares during the period. ArrowMark Colorado Holdings LLC increased its position in shares of Alight by 13.6% during the fourth quarter. ArrowMark Colorado Holdings LLC now owns 24,296,295 shares of the company's stock valued at $168,130,000 after purchasing an additional 2,901,108 shares during the period. Finally, BW Gestao de Investimentos Ltda. bought a new stake in shares of Alight during the fourth quarter valued at approximately $19,581,000. 96.74% of the stock is owned by institutional investors.

Alight Trading Down 4.3%

The firm has a market capitalization of $2.06 billion, a P/E ratio of -1.73 and a beta of 1.00. The company has a quick ratio of 1.18, a current ratio of 1.16 and a debt-to-equity ratio of 0.64. The business has a 50-day moving average price of $5.42 and a 200-day moving average price of $5.75.

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, meeting analysts' consensus estimates of $0.10. The business had revenue of $528.00 million for the quarter, compared to analysts' expectations of $525.26 million. Alight had a positive return on equity of 6.26% and a negative net margin of 50.37%. Alight's quarterly revenue was down 1.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.05 earnings per share. Analysts anticipate that Alight, Inc. will post 0.54 earnings per share for the current year.

Alight Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be given a $0.04 dividend. This represents a $0.16 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date is Tuesday, September 2nd. Alight's dividend payout ratio is -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.