Alight (NYSE:ALIT) Trading Up 6.4% - Still a Buy?

Key Points

• Alight, Inc. (NYSE:ALIT) shares rose by 6.4% to trade between $3.92 and $4.09, with a total of 7,099,987 shares exchanged, marking an 11% decline from average trading volume.
• Analyst ratings have recently been downgraded, with Needham & Company lowering their price target from $8.00 to $6.00 while maintaining a "buy" rating.
• The company declared a quarterly dividend of $0.04, resulting in an annualized yield of 4.1%, set to be paid on September 15th to shareholders of record as of September 2nd.

Shares of Alight, Inc. (NYSE:ALIT - Get Free Report) traded up 6.4% on Tuesday . The company traded as high as $3.92 and last traded at $4.09. 7,099,987 shares were traded during mid-day trading, a decline of 11% from the average session volume of 7,997,159 shares. The stock had previously closed at $3.84.

Wall Street Analysts Forecast Growth

ALIT has been the topic of several analyst reports. Wedbush cut their target price on Alight from $9.00 to $7.00 and set an "outperform" rating on the stock in a research report on Wednesday, August 6th. UBS Group cut their price objective on shares of Alight from $10.00 to $6.50 and set a "buy" rating on the stock in a report on Wednesday, August 6th. Finally, Needham & Company LLC reduced their target price on shares of Alight from $8.00 to $6.00 and set a "buy" rating for the company in a research note on Wednesday, August 6th. Six investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company presently has an average rating of "Buy" and an average target price of $8.75.

Alight Price Performance

The stock has a market cap of $2.03 billion, a P/E ratio of -1.70 and a beta of 1.01. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.16 and a current ratio of 1.16. The business has a 50 day simple moving average of $4.80 and a 200-day simple moving average of $5.35.

Alight (NYSE:ALIT - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported $0.10 EPS for the quarter, hitting analysts' consensus estimates of $0.10. The company 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 business's revenue for the quarter was down 1.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.05 EPS. Alight has set its FY 2025 guidance at 0.580-0.640 EPS. On average, sell-side analysts forecast that Alight, Inc. will post 0.54 EPS for the current year.

Alight Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd will be paid 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 payout ratio is presently -7.24%.

Institutional Investors Weigh In On Alight

Several large investors have recently modified their holdings of the stock. Public Employees Retirement System of Ohio raised its holdings in shares of Alight by 40.8% in the 4th quarter. Public Employees Retirement System of Ohio now owns 7,101 shares of the company's stock worth $49,000 after purchasing an additional 2,059 shares during the period. Amalgamated Bank raised its stake in shares of Alight by 17.2% in the first quarter. Amalgamated Bank now owns 14,534 shares of the company's stock valued at $86,000 after buying an additional 2,133 shares during the period. Caitong International Asset Management Co. Ltd raised its stake 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 buying an additional 2,348 shares during the period. Winslow Asset Management Inc. lifted its position in shares of Alight by 18.6% during the 1st quarter. Winslow Asset Management Inc. now owns 15,905 shares of the company's stock valued at $94,000 after buying an additional 2,500 shares during the last quarter. Finally, Shay Capital LLC grew its stake in shares of Alight by 2.4% during the 4th quarter. Shay Capital LLC now owns 128,000 shares of the company's stock worth $886,000 after acquiring an additional 3,000 shares during the period. Hedge funds and other institutional investors 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.