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Alignment Healthcare (NASDAQ:ALHC) Stock Price Up 9% on Earnings Beat

Alignment Healthcare logo with Medical background

Key Points

  • Alignment Healthcare's stock rose 9% following an earnings report that beat expectations, with shares trading up to $12.92 from a previous close of $11.78.
  • The company reported $0.07 earnings per share, exceeding the consensus estimate of a loss of ($0.07) by $0.14.
  • Several analysts have increased their price targets for Alignment Healthcare, with Robert W. Baird setting a new target at $22.00 and Stifel Nicolaus raising theirs to $23.00, indicating positive market sentiment.
  • Five stocks we like better than Alignment Healthcare.

Shares of Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) traded up 9% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $12.92 and last traded at $12.85. 4,919,784 shares traded hands during mid-day trading, an increase of 70% from the average session volume of 2,900,526 shares. The stock had previously closed at $11.78.

The company reported $0.07 earnings per share for the quarter, topping analysts' consensus estimates of ($0.07) by $0.14. The business had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $960.25 million. Alignment Healthcare had a negative return on equity of 46.95% and a negative net margin of 1.53%. The firm's revenue for the quarter 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 Ratings Changes

A number of research firms recently commented on ALHC. UBS Group increased their price target on Alignment Healthcare from $16.00 to $17.00 and gave the company a "neutral" rating in a research report on Friday, May 2nd. Robert W. Baird lifted their price objective on Alignment Healthcare from $17.00 to $22.00 and gave the stock an "outperform" rating in a report on Tuesday, April 15th. Stifel Nicolaus raised their target price on Alignment Healthcare from $18.00 to $23.00 and gave the stock a "buy" rating in a research note on Tuesday, April 8th. Stephens raised shares of Alignment Healthcare to a "strong-buy" rating in a report on Monday, June 2nd. Finally, Barclays upgraded Alignment Healthcare from an "underweight" rating to an "equal weight" rating and increased their price objective for the company from $9.00 to $13.00 in a research report on Thursday. Four analysts have rated the stock with a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Alignment Healthcare currently has a consensus rating of "Moderate Buy" and a consensus price target of $17.61.

View Our Latest Stock Report on ALHC

Insider Transactions at Alignment Healthcare

In related news, insider Robert L. Scavo sold 40,863 shares of the stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $15.20, for a total transaction of $621,117.60. Following the sale, the insider directly owned 602,090 shares of the company's stock, valued at $9,151,768. This trade represents a 6.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, President Dawn Christine Maroney sold 30,000 shares of the stock in a transaction on Monday, July 14th. The shares were sold at an average price of $13.44, for a total value of $403,200.00. Following the sale, the president directly owned 2,042,899 shares in the company, valued at $27,456,562.56. This trade represents a 1.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 17,660,262 shares of company stock valued at $269,263,746. 7.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Alignment Healthcare by 13.2% in the first quarter. Vanguard Group Inc. now owns 11,113,896 shares of the company's stock worth $206,941,000 after purchasing an additional 1,295,825 shares during the last quarter. T. Rowe Price Investment Management Inc. raised its stake in Alignment Healthcare by 5.0% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 9,078,113 shares of the company's stock valued at $169,035,000 after purchasing an additional 429,071 shares during the period. Wellington Management Group LLP raised its stake in Alignment Healthcare by 0.9% during the 1st quarter. Wellington Management Group LLP now owns 7,509,057 shares of the company's stock valued at $139,819,000 after purchasing an additional 70,557 shares during the period. Hood River Capital Management LLC raised its stake in Alignment Healthcare by 39.6% during the 4th quarter. Hood River Capital Management LLC now owns 4,952,995 shares of the company's stock valued at $55,721,000 after purchasing an additional 1,405,212 shares during the period. Finally, 8 Knots Management LLC increased its stake in Alignment Healthcare by 28.9% in the 1st quarter. 8 Knots Management LLC now owns 4,715,472 shares of the company's stock worth $87,802,000 after acquiring an additional 1,056,777 shares during the last quarter. 86.19% of the stock is owned by hedge funds and other institutional investors.

Alignment Healthcare Trading Down 3.8%

The company has a current ratio of 1.69, a quick ratio of 1.69 and a debt-to-equity ratio of 2.95. The stock has a 50 day simple moving average of $13.92 and a 200-day simple moving average of $15.33. The firm has a market cap of $2.62 billion, a P/E ratio of -47.35 and a beta of 1.16.

Alignment Healthcare Company Profile

(Get Free Report)

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.

Read More

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