Alight (NYSE:ALIT) Stock Price Down 14.2% - Here's What Happened

Key Points

• Alight, Inc. (NYSE:ALIT) experienced a significant stock price drop of 14.2%, trading as low as $4.63 before stabilizing at $4.40, marking a substantial decline in trading volume.
• Analyst ratings have shifted, with Wedbush lowering its target price from $11.00 to $9.00 while maintaining an "outperform" rating, leading to an average target price of $9.86.
• The company recently declared a quarterly dividend of $0.04 per share, reflecting a yield of 3.8%, although its dividend payout ratio is notably negative at -114.29%.

Alight, Inc. (NYSE:ALIT - Get Free Report) traded down 14.2% during mid-day trading on Tuesday . The stock traded as low as $4.63 and last traded at $4.40. 783,801 shares traded hands during trading, a decline of 90% from the average session volume of 7,644,706 shares. The stock had previously closed at $5.13.

Wall Street Analysts Forecast Growth

ALIT has been the subject of a number of recent research reports. Needham & Company LLC cut their price objective on Alight from $8.00 to $6.00 and set a "buy" rating for the company in a research note on Wednesday. UBS Group decreased their price objective on shares of Alight from $10.00 to $6.50 and set a "buy" rating on the stock in a research report on Wednesday. Finally, Wedbush dropped their target price on shares of Alight from $9.00 to $7.00 and set an "outperform" rating for the company in a report on Wednesday. One investment analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $8.94.

Alight Stock Performance

The company has a market capitalization of $2.18 billion, a price-to-earnings ratio of -1.83 and a beta of 1.00. 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 stock's 50-day moving average price is $5.49 and its 200-day moving average price is $5.80.

Alight (NYSE:ALIT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.10 earnings per share for the quarter, hitting analysts' consensus estimates of $0.10. The company had revenue of $528.00 million for the quarter, compared to the consensus estimate of $525.26 million. Alight had a negative net margin of 50.37% and a positive return on equity of 5.83%. Alight's revenue was down 1.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.05 earnings per share. As a group, equities research analysts expect that Alight, Inc. will post 0.54 earnings per share 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 $0.04 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.16 annualized dividend and a dividend yield of 3.9%. Alight's dividend payout ratio is presently -114.29%.

Insider Buying and Selling

In other news, Director David D. Guilmette acquired 50,000 shares of the firm's stock in a transaction on Tuesday, May 20th. The stock was 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 acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 1.93% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alight

A number of hedge funds have recently bought and sold shares of ALIT. Pictet Asset Management Holding SA lifted its position in shares of Alight by 9.5% in the 4th quarter. Pictet Asset Management Holding SA now owns 51,138 shares of the company's stock worth $354,000 after buying an additional 4,442 shares during the last quarter. Arrowstreet Capital Limited Partnership acquired a new position in Alight during the 4th quarter valued at approximately $644,000. Alliancebernstein L.P. grew its stake in Alight by 9.6% during the 4th quarter. Alliancebernstein L.P. now owns 473,430 shares of the company's stock worth $3,276,000 after buying an additional 41,600 shares during the last quarter. Wells Fargo & Company MN lifted its stake in Alight by 7.3% in the fourth quarter. Wells Fargo & Company MN now owns 294,377 shares of the company's stock valued at $2,037,000 after buying an additional 19,944 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd bought a new stake in Alight in the fourth quarter valued at $439,000. 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.