Alignment Healthcare (NASDAQ:ALHC) Shares Down 6.1% - Here's Why

Key Points

• Alignment Healthcare shares fell 6.1% to about $18.08 intraday, with 675,224 shares traded — roughly a 79% drop from its average session volume.
• Analysts remain broadly positive: MarketBeat shows a consensus of Moderate Buy and an average price target of $24.89 after several upgrades and raised targets from firms including JPMorgan and KeyCorp.
• The company beat quarterly estimates (EPS $0.05 vs. $0.01 estimate) and reported revenue up 33.3% year-over-year, but carries a high valuation (P/E ~202) and has seen significant insider selling (~1.47M shares over 90 days).

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report)'s stock price traded down 6.1% during trading on Tuesday . The company traded as low as $18.32 and last traded at $18.0760. 675,224 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 3,261,453 shares. The stock had previously closed at $19.26.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Zacks Research upgraded Alignment Healthcare from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 28th. JPMorgan Chase & Co. increased their target price on Alignment Healthcare from $23.00 to $26.00 and gave the company an "overweight" rating in a research report on Thursday, February 5th. Barclays raised their price target on Alignment Healthcare from $18.00 to $19.00 and gave the stock an "equal weight" rating in a research report on Friday. Wolfe Research began coverage on shares of Alignment Healthcare in a report on Friday, April 17th. They issued an "outperform" rating and a $24.00 target price for the company. Finally, KeyCorp reiterated an "overweight" rating and set a $28.00 price target on shares of Alignment Healthcare in a research note on Thursday, January 22nd. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $24.89.

Alignment Healthcare Trading Down 5.3%

The business's 50 day simple moving average is $19.38 and its 200 day simple moving average is $19.45. The company has a market capitalization of $3.77 billion, a price-to-earnings ratio of 202.04, a price-to-earnings-growth ratio of 4.16 and a beta of 1.26. The company has a debt-to-equity ratio of 1.56, a current ratio of 1.58 and a quick ratio of 1.58.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.04. Alignment Healthcare had a net margin of 0.47% and a return on equity of 11.50%. The company had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the firm earned ($0.05) earnings per share. Alignment Healthcare's revenue for the quarter was up 33.3% on a year-over-year basis. Research analysts anticipate that Alignment Healthcare, Inc. will post 0.13 EPS for the current year.

Insiders Place Their Bets

In other news, CEO John E. Kao sold 250,000 shares of the business's stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $21.01, for a total transaction of $5,252,500.00. Following the completion of the transaction, the chief executive officer owned 2,104,641 shares of the company's stock, valued at approximately $44,218,507.41. The trade was a 10.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Dawn Christine Maroney sold 36,749 shares of the company's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $17.84, for a total transaction of $655,602.16. Following the transaction, the president owned 1,058,813 shares of the company's stock, valued at $18,889,223.92. This represents a 3.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 1,474,097 shares of company stock valued at $28,679,550. 5.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Summit Securities Group LLC bought a new stake in shares of Alignment Healthcare during the 4th quarter worth about $26,000. Parallel Advisors LLC grew its stake in Alignment Healthcare by 87.7% in the 4th quarter. Parallel Advisors LLC now owns 1,654 shares of the company's stock valued at $33,000 after buying an additional 773 shares during the last quarter. Larson Financial Group LLC acquired a new position in Alignment Healthcare during the 3rd quarter worth $33,000. First Horizon Corp bought a new stake in Alignment Healthcare during the fourth quarter valued at about $39,000. Finally, GAMMA Investing LLC boosted its position in shares of Alignment Healthcare by 83.8% during the 4th quarter. GAMMA Investing LLC now owns 2,165 shares of the company's stock valued at $43,000 after acquiring an additional 987 shares in the last quarter. Institutional investors own 86.19% of the company's stock.

About Alignment Healthcare

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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