Alight (NYSE:ALIT) Sets New 52-Week Low - Time to Sell?

Key Points

• Alight, Inc. reached a new 52-week low with shares trading at $3.78, following a volume of 821,818 shares on Thursday.
• Recent analyst forecasts saw a reduction in Alight's price objectives, with UBS lowering it to $6.50 and Needham to $6.00, while maintaining a "buy" rating.
• The company reported a quarterly earnings meeting consensus estimates at $0.10 per share, despite a negative net margin of 50.37% and a revenue decline of 1.9% year-over-year.

Alight, Inc. (NYSE:ALIT - Get Free Report)'s share price reached a new 52-week low during trading on Thursday . The company traded as low as $3.78 and last traded at $3.79, with a volume of 821818 shares. The stock had previously closed at $3.88.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on ALIT. UBS Group reduced their price objective on Alight from $10.00 to $6.50 and set a "buy" rating for the company in a research report on Wednesday, August 6th. Needham & Company LLC dropped their target price on shares of Alight from $8.00 to $6.00 and set a "buy" rating on the stock in a report on Wednesday, August 6th. Finally, Wedbush dropped their target price on shares of Alight from $9.00 to $7.00 and set an "outperform" rating on the stock in a report on Wednesday, August 6th. One equities research analyst has rated the stock with a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $8.94.

Alight Price Performance

The stock's 50-day moving average price is $5.33 and its 200-day moving average price is $5.70. The company has a market capitalization of $2.03 billion, a price-to-earnings ratio of -1.71 and a beta of 1.00. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.64.

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 the consensus estimate of $0.10. Alight had a negative net margin of 50.37% and a positive return on equity of 6.26%. 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 business posted $0.05 earnings per share. Alight's revenue was down 1.9% compared to the same quarter last year. Equities research analysts anticipate that Alight, Inc. will post 0.54 earnings per share for the current year.

Alight Dividend Announcement

The business 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. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.16 annualized dividend and a dividend yield of 4.2%. Alight's dividend payout ratio is currently -7.24%.

Insiders Place Their Bets

In other Alight news, Director David D. Guilmette bought 50,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The stock was acquired at an average price of $5.69 per share, with a total value of $284,500.00. Following the completion of the transaction, the director owned 600,750 shares in the company, valued at approximately $3,418,267.50. This trade represents a 9.08% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have acquired a total of 55,216 shares of company stock valued at $307,636 over the last ninety days. 1.93% of the stock is currently owned by company insiders.

Institutional Trading of Alight

Several hedge funds and other institutional investors have recently bought and sold shares of ALIT. Norges Bank bought a new position in Alight in the 2nd quarter valued at about $28,596,000. Starboard Value LP grew its holdings in shares of Alight by 8.8% during the 4th 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 last quarter. J. Goldman & Co LP grew its holdings in shares of Alight by 105.3% during the 4th 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 last quarter. ArrowMark Colorado Holdings LLC grew its holdings in shares of Alight by 13.6% during the 4th 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 last quarter. Finally, BW Gestao de Investimentos Ltda. bought a new stake in shares of Alight during the 4th quarter valued at approximately $19,581,000. Institutional investors and hedge funds own 96.74% of the company's stock.

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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