Alignment Healthcare (NASDAQ:ALHC) Stock Price Down 4.9% - What's Next?

Key Points

• Alignment Healthcare's stock price dropped 4.9%, trading at $16.60 after hitting a low of $16.76, with trading volume decreasing by 87% compared to the average session.
• Analyst ratings for Alignment Healthcare have been mixed, with significant upgrades from Zacks Research and Barclays, while Wall Street Zen downgraded the stock to a "hold" rating.
• Insider selling has been notable, with a director selling over 6 million shares recently, indicating a 20.25% decrease in their position in the company.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report)'s stock price fell 4.9% on Wednesday . The stock traded as low as $16.76 and last traded at $16.60. 414,830 shares were traded during trading, a decline of 87% from the average session volume of 3,150,849 shares. The stock had previously closed at $17.45.

Analyst Ratings Changes

A number of research firms have weighed in on ALHC. Wall Street Zen cut shares of Alignment Healthcare from a "buy" rating to a "hold" rating in a research report on Sunday, August 10th. Zacks Research raised shares of Alignment Healthcare from a "hold" rating to a "strong-buy" rating in a research note on Monday. Barclays upgraded Alignment Healthcare from an "underweight" rating to an "equal weight" rating and boosted their target price for the company from $9.00 to $13.00 in a research report on Thursday, July 31st. Finally, KeyCorp raised Alignment Healthcare from a "sector weight" rating to an "overweight" rating and set a $21.00 price target for the company in a research note on Monday, August 25th. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price 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 firm has a fifty day moving average of $15.32 and a two-hundred day moving average of $15.66. The stock has a market capitalization of $3.37 billion, a P/E ratio of -60.43 and a beta of 1.17.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.07 EPS for the quarter, beating 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 analyst estimates of $960.25 million. During the same quarter in the previous year, the business posted ($0.13) EPS. The company's quarterly revenue 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. On average, analysts predict that Alignment Healthcare, Inc. will post -0.69 EPS for the current year.

Insiders Place Their Bets

In other news, Director Atlantic (Aln Hlth) L. General sold 6,246,096 shares of the business's stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $16.01, for a total value of $99,999,996.96. Following the completion of the transaction, the director directly owned 24,596,079 shares of the company's stock, valued at approximately $393,783,224.79. The trade was a 20.25% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Christopher J. Joyce sold 30,939 shares of Alignment Healthcare stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $16.41, for a total value of $507,708.99. Following the completion of the transaction, the insider owned 343,592 shares in the company, valued at $5,638,344.72. This trade represents a 8.26% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 7,388,173 shares of company stock worth $118,068,256. Insiders own 6.60% of the company's stock.

Hedge Funds Weigh In On Alignment Healthcare

Large investors have recently made changes to their positions in the business. Teacher Retirement System of Texas boosted its position in shares of Alignment Healthcare by 109.1% in the 1st quarter. Teacher Retirement System of Texas now owns 47,447 shares of the company's stock worth $883,000 after purchasing an additional 24,755 shares in the last quarter. New York State Common Retirement Fund boosted its holdings in Alignment Healthcare by 100.9% in the first quarter. New York State Common Retirement Fund now owns 165,642 shares of the company's stock worth $3,084,000 after acquiring an additional 83,187 shares in the last quarter. Victory Capital Management Inc. grew its stake in shares of Alignment Healthcare by 905.7% during the first quarter. Victory Capital Management Inc. now owns 114,397 shares of the company's stock worth $2,130,000 after acquiring an additional 103,022 shares during the last quarter. GAMMA Investing LLC increased its holdings in shares of Alignment Healthcare by 3,216.9% during the first quarter. GAMMA Investing LLC now owns 23,815 shares of the company's stock valued at $443,000 after acquiring an additional 23,097 shares in the last quarter. Finally, Raymond James Financial Inc. raised its position in shares of Alignment Healthcare by 31.1% in the 1st quarter. Raymond James Financial Inc. now owns 206,174 shares of the company's stock valued at $3,839,000 after purchasing an additional 48,901 shares during the last quarter. 86.19% of the stock is owned by institutional investors and hedge funds.

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.

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