Alignment Healthcare (NASDAQ:ALHC) Trading Up 6.4% - Time to Buy?

Key Points

• Alignment Healthcare shares rose 6.4% in Tuesday trading, reaching as high as $18.28 on volume above the daily average.
• Analyst sentiment remains constructive, with recent price target increases from firms including TD Cowen, Baird, and KeyCorp; the stock now carries a consensus Moderate Buy rating and an average target of $24.60.
• The company’s latest earnings beat expectations, posting EPS of $0.05 versus $0.01 expected and revenue of $1.24 billion, while revenue jumped 33.3% year over year.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report)'s stock price was up 6.4% during mid-day trading on Tuesday . The stock traded as high as $18.28 and last traded at $18.2550. Approximately 4,131,171 shares traded hands during trading, an increase of 22% from the average daily volume of 3,393,101 shares. The stock had previously closed at $17.16.

Analyst Ratings Changes

Several analysts have issued reports on ALHC shares. TD Cowen boosted their price target on Alignment Healthcare from $18.50 to $25.00 and gave the company a "buy" rating in a report on Friday, January 16th. Wall Street Zen upgraded Alignment Healthcare from a "hold" rating to a "buy" rating in a research report on Saturday. Weiss Ratings upgraded Alignment Healthcare from a "sell (d-)" rating to a "hold (c-)" rating in a research report on Thursday. Robert W. Baird set a $28.00 target price on Alignment Healthcare in a research note on Friday, January 30th. Finally, KeyCorp restated an "overweight" rating and issued a $28.00 target price on shares of Alignment Healthcare in a research note on Thursday, January 22nd. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, Alignment Healthcare has an average rating of "Moderate Buy" and an average price target of $24.60.

Alignment Healthcare Price Performance

The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 1.56. The stock has a market capitalization of $3.83 billion, a price-to-earnings ratio of 206.67, a PEG ratio of 2.78 and a beta of 1.26. The stock has a 50-day moving average price of $19.17 and a 200 day moving average price of $19.47.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $0.05 EPS for the quarter, beating analysts' consensus estimates of $0.01 by $0.04. Alignment Healthcare had a return on equity of 11.50% and a net margin of 0.47%.The firm had revenue of $1.24 billion for the quarter, compared to analysts' expectations of $1.22 billion. During the same period last year, the firm earned ($0.05) EPS. The company's quarterly revenue was up 33.3% on a year-over-year basis. As a group, equities research analysts expect that Alignment Healthcare, Inc. will post 0.17 earnings per share for the current year.

Insider Activity

In related news, CEO John E. Kao sold 82,299 shares of Alignment Healthcare stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $20.80, for a total value of $1,711,819.20. Following the sale, the chief executive officer directly owned 1,806,641 shares in the company, valued at approximately $37,578,132.80. The trade was a 4.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Dawn Christine Maroney sold 30,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $20.87, for a total transaction of $626,100.00. Following the completion of the transaction, the president directly owned 1,028,813 shares in the company, valued at $21,471,327.31. This trade represents a 2.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 1,271,859 shares of company stock worth $24,536,138. 5.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Alignment Healthcare

Several hedge funds have recently made changes to their positions in ALHC. Royal Bank of Canada boosted its stake in shares of Alignment Healthcare by 92.6% during the first quarter. Royal Bank of Canada now owns 92,379 shares of the company's stock worth $1,720,000 after buying an additional 44,413 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Alignment Healthcare by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 59,557 shares of the company's stock worth $1,109,000 after buying an additional 2,594 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of Alignment Healthcare by 79.1% during the first quarter. Goldman Sachs Group Inc. now owns 972,715 shares of the company's stock worth $18,112,000 after buying an additional 429,703 shares during the period. Woodline Partners LP acquired a new stake in shares of Alignment Healthcare during the first quarter worth about $2,142,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Alignment Healthcare by 16.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 307,655 shares of the company's stock worth $5,729,000 after buying an additional 44,452 shares during the period. Institutional investors and hedge funds own 86.19% of the company's stock.

Alignment Healthcare Company Profile

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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