Alignment Healthcare (NASDAQ:ALHC) Issues Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Key Points

• Alignment Healthcare reported earnings of $0.07 per share, exceeding expectations by $0.14, with revenues of $1.02 billion for the quarter, a 49% increase year-over-year.
• Stock performance shows shares trading at $12.97 with a market capitalization of $2.57 billion, while analysts maintain a consensus rating of "Moderate Buy" and an average price target of $17.61.
• Insider transactions involved significant sales, including approximately 17 million shares sold by a director, representing a 27.73% decrease in ownership, highlighting potential concerns about insider confidence.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) announced its earnings results on Wednesday. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.14, Zacks reports. The firm had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $960.25 million. Alignment Healthcare had a negative return on equity of 43.68% and a negative net margin of 1.53%. The firm's revenue for the quarter was up 49.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.13) EPS. Alignment Healthcare updated its FY 2025 guidance to EPS and its Q3 2025 guidance to EPS.

Alignment Healthcare Stock Performance

NASDAQ ALHC traded down $0.81 during trading on Friday, reaching $12.97. 3,566,563 shares of the company's stock were exchanged, compared to its average volume of 3,659,441. The business has a 50 day moving average price of $13.89 and a 200-day moving average price of $15.32. The stock has a market capitalization of $2.57 billion, a P/E ratio of -46.32 and a beta of 1.16. The company has a debt-to-equity ratio of 2.29, a current ratio of 1.66 and a quick ratio of 1.69. Alignment Healthcare has a fifty-two week low of $7.92 and a fifty-two week high of $21.06.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on ALHC shares. Stephens raised Alignment Healthcare to a "strong-buy" rating in a report on Monday, June 2nd. Stifel Nicolaus increased their target price on Alignment Healthcare from $18.00 to $23.00 and gave the stock a "buy" rating in a report on Tuesday, April 8th. Robert W. Baird increased their target price on Alignment Healthcare from $17.00 to $22.00 and gave the stock an "outperform" rating in a report on Tuesday, April 15th. UBS Group raised their price target on Alignment Healthcare from $16.00 to $17.00 and gave the company a "neutral" rating in a report on Friday, May 2nd. Finally, Barclays raised 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 report on Thursday. Four investment analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Alignment Healthcare currently has a consensus rating of "Moderate Buy" and an average price target of $17.61.

Insider Transactions at Alignment Healthcare

In other Alignment Healthcare news, insider Robert L. Scavo sold 60,000 shares of the company's stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $14.60, for a total transaction of $876,000.00. Following the completion of the sale, the insider directly owned 642,953 shares in the company, valued at $9,387,113.80. This represents a 8.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Atlantic (Aln Hlth) L. General sold 17,000,000 shares of the stock in a transaction on Monday, May 19th. The shares were sold at an average price of $15.28, for a total value of $259,760,000.00. Following the completion of the transaction, the director owned 44,302,175 shares of the company's stock, valued at $676,937,234. The trade was a 27.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 17,700,753 shares of company stock worth $269,911,757 over the last three months. Company insiders own 7.00% of the company's stock.

Institutional Trading of Alignment Healthcare

A number of large investors have recently bought and sold shares of ALHC. Royal Bank of Canada lifted its position in Alignment Healthcare by 92.6% in the 1st quarter. Royal Bank of Canada now owns 92,379 shares of the company's stock valued at $1,720,000 after acquiring an additional 44,413 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Alignment Healthcare by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 59,557 shares of the company's stock valued at $1,109,000 after acquiring an additional 2,594 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Alignment Healthcare by 79.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 972,715 shares of the company's stock valued at $18,112,000 after acquiring an additional 429,703 shares in the last quarter. Woodline Partners LP bought a new position in Alignment Healthcare in the 1st quarter valued at about $2,142,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Alignment Healthcare by 16.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 307,655 shares of the company's stock valued at $5,729,000 after acquiring an additional 44,452 shares in the last quarter. 86.19% of the stock is currently owned by institutional investors and hedge funds.

About Alignment Healthcare

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.

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