Alignment Healthcare (NASDAQ:ALHC) Shares Gap Down on Insider Selling

Key Points

• Alignment Healthcare shares gapped down by 4.24%, opening at $15.75 after CEO John E. Kao sold 180,000 shares and another 355,018 shares, resulting in a significant decrease in his ownership position.
• The stock currently has a consensus rating of "Moderate Buy" with a target price of $18.83, reflecting mixed sentiments among analysts following recent rating changes by several brokerages.
• Despite the recent insider selling, Alignment Healthcare reported a 49% increase in revenue year-over-year, totaling $1.02 billion, and exceeded earnings expectations in its last quarterly report.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) gapped down before the market opened on Thursday after an insider sold shares in the company. The stock had previously closed at $16.45, but opened at $15.75. Alignment Healthcare shares last traded at $15.37, with a volume of 1,686,016 shares trading hands.

Specifically, CEO John E. Kao sold 180,000 shares of the stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $16.42, for a total value of $2,955,600.00. Following the sale, the chief executive officer directly owned 1,193,100 shares of the company's stock, valued at $19,590,702. This represents a 13.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO John E. Kao sold 355,018 shares of the firm's stock in a transaction that occurred on Wednesday, September 10th. The stock was sold at an average price of $16.41, for a total transaction of $5,825,845.38. Following the transaction, the chief executive officer directly owned 4,533,568 shares in the company, valued at approximately $74,395,850.88. This trade represents a 7.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, Director Joseph S. Konowiecki sold 25,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $17.00, for a total transaction of $425,000.00. Following the transaction, the director directly owned 1,127,049 shares of the company's stock, valued at approximately $19,159,833. This trade represents a 2.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ALHC. Wall Street Zen lowered shares of Alignment Healthcare from a "buy" rating to a "hold" rating in a report on Sunday, August 10th. Zacks Research raised shares of Alignment Healthcare to a "hold" rating in a report on Friday, August 8th. Barclays raised shares of Alignment Healthcare from an "underweight" rating to an "equal weight" rating and lifted their price objective for the company from $9.00 to $13.00 in a report on Thursday, July 31st. KeyCorp raised shares of Alignment Healthcare from a "sector weight" rating to an "overweight" rating and set a $21.00 price objective on the stock in a report on Monday, August 25th. Finally, Stephens upgraded shares of Alignment Healthcare to a "strong-buy" rating in a research note on Monday, June 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.83.

Alignment Healthcare Trading Down 7.1%

The company's 50 day simple moving average is $14.32 and its two-hundred day simple moving average is $15.47. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 2.29. The company has a market capitalization of $3.03 billion, a price-to-earnings ratio of -54.55 and a beta of 1.17.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.07 EPS for the quarter, topping the consensus estimate 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 business had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $960.25 million. During the same period in the previous year, the firm posted ($0.13) earnings per share. The business's revenue for the quarter was up 49.0% compared to the same quarter last year. Alignment Healthcare has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, research analysts anticipate that Alignment Healthcare, Inc. will post -0.69 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Alignment Healthcare

Several institutional investors and hedge funds have recently made changes to their positions in ALHC. MCF Advisors LLC raised its stake in shares of Alignment Healthcare by 87.6% in the 1st quarter. MCF Advisors LLC now owns 2,165 shares of the company's stock valued at $40,000 after acquiring an additional 1,011 shares during the period. Skandinaviska Enskilda Banken AB publ acquired a new position in shares of Alignment Healthcare in the 1st quarter valued at $42,000. SBI Securities Co. Ltd. boosted its holdings in shares of Alignment Healthcare by 4,868.9% in the 2nd quarter. SBI Securities Co. Ltd. now owns 3,031 shares of the company's stock valued at $42,000 after buying an additional 2,970 shares in the last quarter. KBC Group NV acquired a new position in shares of Alignment Healthcare in the 2nd quarter valued at $44,000. Finally, Signaturefd LLC boosted its holdings in shares of Alignment Healthcare by 142.6% in the 2nd quarter. Signaturefd LLC now owns 3,768 shares of the company's stock valued at $53,000 after buying an additional 2,215 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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