Alignment Healthcare (NASDAQ:ALHC) CEO John Kao Sells 298,000 Shares

Key Points

• CEO John Kao sold 298,000 shares of Alignment Healthcare on July 10 for about $5.92 million, reducing his stake by 21.49%. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
• The stock was trading around $21.20, near its 1-year high of $25.12, with a market cap of about $4.38 billion. It also has a high valuation, with a P/E ratio of 235.56.
• Alignment Healthcare recently reported better-than-expected earnings, posting $0.05 EPS versus $0.01 expected and revenue of $1.24 billion, up 33.3% year over year. Analysts currently rate the stock Moderate Buy with a consensus price target of $24.30.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) CEO John Kao sold 298,000 shares of the firm's stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $19.86, for a total transaction of $5,918,280.00. Following the transaction, the chief executive officer owned 1,088,766 shares of the company's stock, valued at approximately $21,622,892.76. This represents a 21.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Alignment Healthcare Price Performance

NASDAQ ALHC traded up $0.82 during trading on Tuesday, reaching $21.20. 3,269,161 shares of the company traded hands, compared to its average volume of 4,427,796. Alignment Healthcare, Inc. has a 1-year low of $11.63 and a 1-year high of $25.12. The company has a market cap of $4.38 billion, a price-to-earnings ratio of 235.56, a P/E/G ratio of 2.68 and a beta of 1.05. The stock's 50 day moving average price is $19.03 and its two-hundred day moving average price is $19.79. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.58 and a current ratio of 1.58.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $0.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.01 by $0.04. The business had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. Alignment Healthcare had a return on equity of 11.50% and a net margin of 0.47%.Alignment Healthcare's quarterly revenue was up 33.3% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.05) EPS. As a group, analysts anticipate that Alignment Healthcare, Inc. will post 0.2 EPS for the current year.

Institutional Investors Weigh In On Alignment Healthcare

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ALHC. Vanguard Group Inc. lifted its position in shares of Alignment Healthcare by 10.9% during the fourth quarter. Vanguard Group Inc. now owns 15,492,802 shares of the company's stock worth $305,983,000 after purchasing an additional 1,524,218 shares in the last quarter. Wellington Management Group LLP increased its holdings in shares of Alignment Healthcare by 26.9% in the fourth quarter. Wellington Management Group LLP now owns 14,070,893 shares of the company's stock valued at $277,900,000 after purchasing an additional 2,981,166 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its holdings in shares of Alignment Healthcare by 0.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 12,643,784 shares of the company's stock valued at $249,715,000 after purchasing an additional 79,268 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Alignment Healthcare by 38.9% in the fourth quarter. Invesco Ltd. now owns 6,202,592 shares of the company's stock valued at $122,501,000 after purchasing an additional 1,735,962 shares in the last quarter. Finally, 8 Knots Management LLC raised its position in Alignment Healthcare by 6.4% in the 2nd quarter. 8 Knots Management LLC now owns 5,015,881 shares of the company's stock worth $70,222,000 after purchasing an additional 300,409 shares during the last quarter. Institutional investors and hedge funds own 86.19% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on ALHC. Zacks Research cut shares of Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Raymond James Financial set a $22.00 price target on shares of Alignment Healthcare in a research report on Thursday, May 7th. KeyCorp reaffirmed an "overweight" rating on shares of Alignment Healthcare in a report on Wednesday, June 10th. UBS Group reissued a "neutral" rating on shares of Alignment Healthcare in a report on Wednesday, July 8th. Finally, Weiss Ratings raised Alignment Healthcare from a "sell (d-)" rating to a "hold (c-)" rating in a report on Thursday, May 7th. Six analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Alignment Healthcare currently has a consensus rating of "Moderate Buy" and a consensus price target of $24.30.

Alignment Healthcare Company Profile

Alignment Healthcare, Inc NASDAQ: ALHC is a health care company specializing in value-based care for Medicare Advantage beneficiaries. The company leverages an integrated care model that combines in-home clinical services, telehealth capabilities and digital health tools to manage chronic conditions, improve outcomes and enhance patient experience.

At the core of Alignment Healthcare's approach is a proprietary technology platform that aggregates real-time clinical and claims data to support preventive care, risk stratification and personalized care plans.

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