Alignment Healthcare (NASDAQ:ALHC) Trading Down 7.5% - Here's Why

Key Points

• Alignment Healthcare shares fell 7.5% in mid-day trading Monday, with the stock dropping to as low as $14.18 before last trading near $14.17. Trading volume was below average, with about 2.23 million shares changing hands.
• Despite the decline, analysts remain generally bullish: the stock currently carries a Moderate Buy consensus with an average price target of $24.30. Recent firms have issued mixed updates, including JPMorgan raising its target to $26 while Barclays cut its target to $16.
• The company recently reported better-than-expected quarterly results, posting EPS of $0.05 versus estimates of $0.01 and revenue of $1.24 billion, up 33.3% year over year. However, insider selling has been notable, with insiders selling 1.57 million shares worth about $29.4 million over the last 90 days.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) dropped 7.5% during mid-day trading on Monday . The stock traded as low as $14.18 and last traded at $14.1650. Approximately 2,233,812 shares were traded during trading, a decline of 41% from the average daily volume of 3,811,681 shares. The stock had previously closed at $15.32.

Wall Street Analyst Weigh In

ALHC has been the topic of a number of research reports. JPMorgan Chase & Co. upped their target price on Alignment Healthcare from $23.00 to $26.00 and gave the company an "overweight" rating in a report on Thursday, February 5th. Wolfe Research initiated coverage on Alignment Healthcare in a report on Friday, April 17th. They issued an "outperform" rating and a $24.00 target price on the stock. Weiss Ratings upgraded Alignment Healthcare from a "sell (d-)" rating to a "hold (c-)" rating in a report on Thursday, May 7th. Barclays dropped their target price on Alignment Healthcare from $19.00 to $16.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 26th. Finally, Wall Street Zen upgraded Alignment Healthcare from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Two 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 MarketBeat.com, Alignment Healthcare presently has a consensus rating of "Moderate Buy" and an average price target of $24.30.

Alignment Healthcare Stock Down 10.0%

The stock has a market cap of $2.85 billion, a P/E ratio of 153.00, a PEG ratio of 2.15 and a beta of 1.14. The company has a quick ratio of 1.58, a current ratio of 1.58 and a debt-to-equity ratio of 1.56. The business has a 50-day simple moving average of $18.67 and a 200-day simple moving average of $19.40.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $0.05 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.01 by $0.04. The firm had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. Alignment Healthcare had a return on equity of 11.50% and a net margin of 0.47%.The company's revenue was up 33.3% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.05) earnings per share. Analysts expect that Alignment Healthcare, Inc. will post 0.19 EPS for the current year.

Insider Buying and Selling

In related news, insider Andreas P. Wagner sold 11,602 shares of the firm's stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $18.22, for a total value of $211,388.44. Following the completion of the transaction, the insider directly owned 148,628 shares of the company's stock, valued at $2,708,002.16. This trade represents a 7.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Christopher J. Joyce sold 18,013 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $17.79, for a total transaction of $320,451.27. Following the completion of the transaction, the insider owned 305,451 shares of the company's stock, valued at approximately $5,433,973.29. This represents a 5.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,569,859 shares of company stock valued at $29,433,158 in the last ninety days. Company insiders own 5.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Allworth Financial LP lifted its holdings in shares of Alignment Healthcare by 8.9% during the fourth quarter. Allworth Financial LP now owns 6,917 shares of the company's stock valued at $137,000 after acquiring an additional 566 shares during the period. State of Alaska Department of Revenue lifted its holdings in shares of Alignment Healthcare by 6.0% during the fourth quarter. State of Alaska Department of Revenue now owns 11,296 shares of the company's stock valued at $223,000 after acquiring an additional 636 shares during the period. Integrated Wealth Concepts LLC lifted its holdings in shares of Alignment Healthcare by 6.3% during the third quarter. Integrated Wealth Concepts LLC now owns 11,230 shares of the company's stock valued at $196,000 after acquiring an additional 665 shares during the period. Parallel Advisors LLC lifted its holdings in shares of Alignment Healthcare by 87.7% during the fourth quarter. Parallel Advisors LLC now owns 1,654 shares of the company's stock valued at $33,000 after acquiring an additional 773 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH raised its holdings in shares of Alignment Healthcare by 2.3% in the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 37,752 shares of the company's stock valued at $659,000 after buying an additional 844 shares during the last quarter. 86.19% of the stock is owned by institutional investors.

About Alignment Healthcare

Alignment Healthcare, Inc NASDAQ: ALHC is a health care company specializing in value-based care for Medicare Advantage beneficiaries. The company leverages an integrated care model that combines in-home clinical services, telehealth capabilities and digital health tools to manage chronic conditions, improve outcomes and enhance patient experience.

At the core of Alignment Healthcare's approach is a proprietary technology platform that aggregates real-time clinical and claims data to support preventive care, risk stratification and personalized care plans.

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