Alignment Healthcare (NASDAQ:ALHC) Shares Gap Down Following 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.

Shares of Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) gapped down before the market opened on Thursday following insider selling activity. 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 traded.

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

Analyst Ratings Changes

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

Alignment Healthcare Price Performance

The company has a debt-to-equity ratio of 2.29, a current ratio of 1.66 and a quick ratio of 1.66. The business's 50 day moving average price is $14.47 and its 200 day moving average price is $15.54. The stock has a market capitalization of $3.32 billion, a P/E ratio of -59.66 and a beta of 1.17.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $0.07 earnings per share (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 company had revenue of $1.02 billion for the quarter, compared to analysts' expectations of $960.25 million. During the same quarter last year, the company posted ($0.13) earnings per share. The firm's quarterly revenue was up 49.0% on a year-over-year basis. Alignment Healthcare has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Sell-side analysts forecast that Alignment Healthcare, Inc. will post -0.69 EPS for the current year.

Institutional Trading of Alignment Healthcare

A number of hedge funds have recently bought and sold shares of ALHC. Wellington Management Group LLP grew its stake in shares of Alignment Healthcare by 77.9% during the 4th quarter. Wellington Management Group LLP now owns 7,438,500 shares of the company's stock valued at $83,683,000 after purchasing an additional 3,257,630 shares during the period. Invesco Ltd. boosted its holdings in shares of Alignment Healthcare by 122.3% in the second quarter. Invesco Ltd. now owns 4,170,529 shares of the company's stock worth $58,387,000 after buying an additional 2,294,739 shares during the last quarter. Vanguard Group Inc. grew its position in Alignment Healthcare by 13.2% during the first quarter. Vanguard Group Inc. now owns 11,113,896 shares of the company's stock valued at $206,941,000 after buying an additional 1,295,825 shares during the period. Marshall Wace LLP increased its holdings in Alignment Healthcare by 173.3% during the second quarter. Marshall Wace LLP now owns 2,039,714 shares of the company's stock valued at $28,556,000 after buying an additional 1,293,416 shares during the last quarter. Finally, Qube Research & Technologies Ltd raised its position in Alignment Healthcare by 269.6% in the second quarter. Qube Research & Technologies Ltd now owns 1,523,986 shares of the company's stock worth $21,336,000 after acquiring an additional 1,111,685 shares during the period. Hedge funds and other institutional investors 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.