Alight (NYSE:ALIT) Stock Price Down 14.2% - Should You Sell?

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)'s share price 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 changed 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.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on ALIT. Wedbush lowered their target price on Alight from $9.00 to $7.00 and set an "outperform" rating for the company in a research note on Wednesday. UBS Group lowered their target price on 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 lowered their target price on Alight from $8.00 to $6.00 and set a "buy" rating for the company in a research note on Wednesday. One analyst has rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $8.94.

Alight Stock Performance

The company has a market capitalization of $2.06 billion, a price-to-earnings ratio of -1.73 and a beta of 1.00. 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 stock has a 50 day moving average price of $5.42 and a two-hundred day moving average price of $5.75.

Alight (NYSE:ALIT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.10 earnings per share (EPS) for the quarter, meeting the consensus estimate 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%. The firm's quarterly revenue was down 1.9% compared to the same quarter last year. During the same quarter last year, the business earned $0.05 earnings per share. On average, analysts predict that Alight, Inc. will post 0.54 EPS for the current fiscal year.

Alight Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be issued a $0.04 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $0.16 annualized dividend and a yield of 4.2%. Alight's dividend payout ratio (DPR) is currently -7.24%.

Insider Transactions at Alight

In other news, Director David D. Guilmette purchased 50,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The shares were acquired at an average price of $5.69 per share, for a total transaction of $284,500.00. Following the completion of the acquisition, the director directly owned 600,750 shares in the company, valued at approximately $3,418,267.50. The trade was a 9.08% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders bought a total of 55,216 shares of company stock valued at $307,636 in the last quarter. 1.93% of the stock is owned by company insiders.

Hedge Funds Weigh In On Alight

Hedge funds have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio boosted its holdings in 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 buying an additional 2,059 shares during the last quarter. Amalgamated Bank boosted its holdings in Alight by 17.2% during the first quarter. Amalgamated Bank now owns 14,534 shares of the company's stock worth $86,000 after buying an additional 2,133 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in Alight by 82.8% during the first quarter. Caitong International Asset Management Co. Ltd now owns 5,184 shares of the company's stock worth $31,000 after buying an additional 2,348 shares during the last quarter. Winslow Asset Management Inc. boosted its holdings in Alight by 18.6% during the first quarter. Winslow Asset Management Inc. now owns 15,905 shares of the company's stock worth $94,000 after buying an additional 2,500 shares during the last quarter. Finally, Shay Capital LLC boosted its holdings in Alight by 2.4% during the fourth quarter. Shay Capital LLC now owns 128,000 shares of the company's stock worth $886,000 after buying an additional 3,000 shares during the last quarter. Institutional investors own 96.74% of the company's stock.

About Alight

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.