Alignment Healthcare (NASDAQ:ALHC) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

Error: Response status code does not indicate success: 429 (Too Many Requests).

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $13.00, but opened at $15.00. Alignment Healthcare shares last traded at $14.28, with a volume of 6,189,040 shares changing hands.

The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.14. The company had revenue of $1.02 billion for the quarter, compared to analyst estimates of $960.25 million. Alignment Healthcare had a negative return on equity of 80.49% and a negative net margin of 3.02%. The firm's revenue was up 49.0% on a year-over-year basis. During the same period in the previous year, the company posted ($0.13) earnings per share.

Analyst Upgrades and Downgrades

ALHC has been the topic of several recent research reports. Barclays upgraded shares of Alignment Healthcare from an "underweight" rating to an "equal weight" rating and set a $13.00 price target on the stock in a research report on Thursday. Robert W. Baird upped their price target on shares of Alignment Healthcare from $17.00 to $22.00 and gave the stock an "outperform" rating in a research report on Tuesday, April 15th. Stephens upgraded shares of Alignment Healthcare to a "strong-buy" rating in a report on Monday, June 2nd. UBS Group boosted their target price on Alignment Healthcare from $16.00 to $17.00 and gave the company a "neutral" rating in a report on Friday, May 2nd. Finally, Stifel Nicolaus lifted their price target on Alignment Healthcare from $18.00 to $23.00 and gave the stock a "buy" rating in a research report on Tuesday, April 8th. Four investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $17.61.

Insider Activity

In other news, CEO John E. Kao sold 180,000 shares of the company's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $13.41, for a total transaction of $2,413,800.00. Following the transaction, the chief executive officer owned 1,553,100 shares of the company's stock, valued at $20,827,071. This represents a 10.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Atlantic (Aln Hlth) L. General sold 17,000,000 shares of the business's stock in a transaction on Monday, May 19th. The shares were sold at an average price of $15.28, for a total transaction of $259,760,000.00. Following the completion of the sale, the director directly owned 44,302,175 shares in the company, valued at $676,937,234. This represents a 27.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 17,660,262 shares of company stock valued at $269,263,746. Corporate insiders own 7.00% of the company's stock.

Institutional Investors Weigh In On Alignment Healthcare

Several institutional investors and hedge funds have recently made changes to their positions in the stock. MCF Advisors LLC grew its stake in Alignment Healthcare by 87.6% during the first quarter. MCF Advisors LLC now owns 2,165 shares of the company's stock worth $40,000 after purchasing an additional 1,011 shares during the period. Skandinaviska Enskilda Banken AB publ acquired a new stake in Alignment Healthcare in the first quarter worth $42,000. Signaturefd LLC raised its holdings in shares of Alignment Healthcare by 142.6% during the second quarter. Signaturefd LLC now owns 3,768 shares of the company's stock valued at $53,000 after purchasing an additional 2,215 shares during the period. Amalgamated Bank boosted its position in shares of Alignment Healthcare by 21.6% during the 1st quarter. Amalgamated Bank now owns 3,466 shares of the company's stock worth $65,000 after purchasing an additional 616 shares in the last quarter. Finally, RiverPark Advisors LLC bought a new position in Alignment Healthcare in the fourth quarter worth approximately $106,000. Institutional investors and hedge funds own 86.19% of the company's stock.

Alignment Healthcare Stock Performance

The company has a fifty day moving average price of $13.93 and a 200 day moving average price of $15.33. The company has a debt-to-equity ratio of 2.95, a current ratio of 1.69 and a quick ratio of 1.69. The stock has a market cap of $2.80 billion, a P/E ratio of -29.66 and a beta of 1.16.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.