Alignment Healthcare (NASDAQ:ALHC) Lowered to Hold Rating by Wall Street Zen

Key Points

• Alignment Healthcare has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, while other analysts have mixed ratings ranging from "strong buy" to "equal weight."
• The company's shares saw a 4.7% increase on Friday, with a market cap of approximately $2.87 billion and a consensus price target of $18.56.
• Despite a quarterly earnings report showing a revenue increase of 49% year-over-year, Alignment Healthcare posted a negative return on equity of 43.68%.

Wall Street Zen lowered shares of Alignment Healthcare (NASDAQ:ALHC - Free Report) from a buy rating to a hold rating in a research note published on Sunday morning.

Other equities research analysts also recently issued reports about the stock. Robert W. Baird raised their price target on shares of Alignment Healthcare from $17.00 to $22.00 and gave the company an "outperform" rating in a research note on Tuesday, April 15th. UBS Group raised their price target on shares of Alignment Healthcare from $16.00 to $17.00 and gave the company a "neutral" rating in a research note on Friday, May 2nd. Stephens upgraded shares of Alignment Healthcare to a "strong-buy" rating in a research note on Monday, June 2nd. Finally, Barclays upgraded shares of Alignment Healthcare from an "underweight" rating to an "equal weight" rating and raised their price target for the company from $9.00 to $13.00 in a research note on Thursday, July 31st. Five investment analysts have rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $18.56.

Alignment Healthcare Price Performance

Alignment Healthcare stock traded up $0.03 during trading hours on Friday, reaching $14.64. 1,744,588 shares of the stock were exchanged, compared to its average volume of 3,012,907. The company has a market cap of $2.90 billion, a P/E ratio of -52.28 and a beta of 1.16. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 2.29. Alignment Healthcare has a twelve month low of $8.17 and a twelve month high of $21.06. The stock has a 50 day moving average of $13.76 and a two-hundred day moving average of $15.31.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.07) by $0.14. Alignment Healthcare had a negative net margin of 1.53% and a negative return on equity of 43.68%. The firm had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $960.25 million. During the same period in the prior year, the company posted ($0.13) earnings per share. The business's revenue for the quarter was up 49.0% on a year-over-year basis. Equities analysts expect that Alignment Healthcare will post -0.69 EPS for the current fiscal year.

Insider Activity

In other Alignment Healthcare news, CEO John E. Kao sold 180,000 shares of the firm's stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $13.41, for a total transaction of $2,413,800.00. Following the completion of the transaction, the chief executive officer owned 1,553,100 shares in the company, valued at approximately $20,827,071. This trade represents a 10.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Atlantic (Aln Hlth) L. General sold 17,000,000 shares of the firm's stock in a transaction that occurred on Monday, May 19th. The stock was sold at an average price of $15.28, for a total transaction of $259,760,000.00. Following the transaction, the director owned 44,302,175 shares of the company's stock, valued at approximately $676,937,234. The trade was a 27.73% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 17,610,753 shares of company stock worth $268,576,157. 6.60% of the stock is owned by insiders.

Institutional Trading of Alignment Healthcare

Hedge funds have recently bought and sold shares of the business. MCF Advisors LLC increased its stake in Alignment Healthcare by 87.6% during the 1st quarter. MCF Advisors LLC now owns 2,165 shares of the company's stock valued at $40,000 after purchasing an additional 1,011 shares in the last quarter. Skandinaviska Enskilda Banken AB publ bought a new stake in Alignment Healthcare during the 1st quarter valued at $42,000. SBI Securities Co. Ltd. increased its stake in Alignment Healthcare by 4,868.9% during the 2nd quarter. SBI Securities Co. Ltd. now owns 3,031 shares of the company's stock valued at $42,000 after purchasing an additional 2,970 shares in the last quarter. KBC Group NV bought a new stake in Alignment Healthcare during the 2nd quarter valued at $44,000. Finally, Signaturefd LLC increased its stake in Alignment Healthcare by 142.6% during the 2nd quarter. Signaturefd LLC now owns 3,768 shares of the company's stock valued at $53,000 after purchasing an additional 2,215 shares in the last quarter. Institutional investors and hedge funds own 86.19% of the company's stock.

Alignment Healthcare Company Profile

Alignment Healthcare, Inc, a tech-enabled Medicare advantage company, operates consumer-centric health care platform for seniors in the United States. It provides customized health care designed to meet the needs of a diverse array of seniors through its Medicare advantage plans. The company was founded in 2013 and is based in Orange, California.