Alignment Healthcare (NASDAQ:ALHC) Given New $12.00 Price Target at TD Cowen

Key Points

• TD Cowen lowered Alignment Healthcare’s price target from $21 to $12 while maintaining a “buy” rating, implying approximately 49% upside from the stock’s $8.04 price.
• Analyst sentiment has weakened overall, with recent downgrades from Zacks Research, William Blair, and others; however, seven analysts rate the stock a Buy and five rate it a Hold, resulting in a “Moderate Buy” consensus and an average $18 price target.
• Alignment Healthcare reported quarterly EPS of $0.17, beating estimates by $0.04, while revenue rose 31.6% year over year to $1.34 billion. Institutional investors own 86.19% of the company, though insiders sold more than 1.06 million shares worth $13.6 million during the last quarter.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) had its price target lowered by equities researchers at TD Cowen from $21.00 to $12.00 in a note issued to investors on Monday, Benzinga reports. The firm currently has a "buy" rating on the stock. TD Cowen's price target would indicate a potential upside of 49.35% from the stock's current price.

Several other equities analysts also recently commented on the stock. Zacks Research downgraded shares of Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Weiss Ratings cut shares of Alignment Healthcare from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday. William Blair downgraded shares of Alignment Healthcare from an "outperform" rating to a "market perform" rating in a report on Friday. Barclays decreased their price target on shares of Alignment Healthcare from $16.00 to $10.00 and set an "equal weight" rating on the stock in a research note on Tuesday, October 6th. Finally, KeyCorp decreased their price target on shares of Alignment Healthcare from $28.00 to $12.00 and set an "overweight" rating on the stock in a research note on Friday. Seven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $18.00.

Alignment Healthcare Price Performance

ALHC traded up $0.48 on Monday, hitting $8.04. 2,421,120 shares of the company's stock traded hands, compared to its average volume of 5,575,665. The company's 50 day simple moving average is $11.49 and its 200-day simple moving average is $16.63. The firm has a market cap of $1.67 billion, a price-to-earnings ratio of 42.25 and a beta of 1.14. Alignment Healthcare has a one year low of $6.01 and a one year high of $25.12. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.22.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.04. Alignment Healthcare had a return on equity of 20.02% and a net margin of 0.89%. The company had revenue of $1.34 billion for the quarter, compared to analysts' expectations of $1.31 billion. During the same period in the previous year, the firm earned $0.07 EPS. The firm's revenue was up 31.6% compared to the same quarter last year. As a group, research analysts anticipate that Alignment Healthcare will post 0.15 EPS for the current year.

Insider Transactions at Alignment Healthcare

In other news, EVP Joseph Konowiecki sold 23,511 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $8.61, for a total transaction of $202,429.71. Following the sale, the executive vice president directly owned 1,080,305 shares of the company's stock, valued at $9,301,426.05. This represents a 2.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hyong Kim sold 32,479 shares of the stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $8.30, for a total value of $269,575.70. Following the transaction, the insider owned 299,271 shares of the company's stock, valued at $2,483,949.30. This represents a 9.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 1,061,967 shares of company stock worth $13,642,490. 5.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Alignment Healthcare

Hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP lifted its holdings in shares of Alignment Healthcare by 9.8% in the 2nd quarter. Wellington Management Group LLP now owns 18,780,363 shares of the company's stock valued at $447,160,000 after acquiring an additional 1,681,427 shares during the last quarter. William Blair Investment Management LLC purchased a new position in Alignment Healthcare in the second quarter worth about $184,799,000. Danica Pension Livsforsikringsaktieselskab purchased a new position in Alignment Healthcare in the second quarter worth about $87,794,000. Bank of New York Mellon Corp bought a new stake in Alignment Healthcare during the second quarter worth approximately $87,077,000. Finally, Bank of America Corp DE increased its stake in Alignment Healthcare by 156.5% during the first quarter. Bank of America Corp DE now owns 3,215,667 shares of the company's stock worth $56,660,000 after acquiring an additional 1,961,778 shares during the last quarter. Hedge funds and other institutional investors own 86.19% of the company's stock.

Alignment Healthcare Company Profile

Alignment Healthcare, Inc is a technology-enabled Medicare Advantage company focused on providing health coverage and care services for older adults. The company offers Medicare Advantage plans that combine medical benefits with care coordination, wellness support, and other services designed to help members manage their health.

Alignment operates through an integrated healthcare model that uses its proprietary technology platform to support physicians, care teams, and members. Its services include personalized care management, clinical coordination, virtual and in-home support, and member assistance through its concierge-style approach.

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