KeyCorp Issues Pessimistic Forecast for Alignment Healthcare (NASDAQ:ALHC) Stock Price

Key Points

• KeyCorp cut its Alignment Healthcare price target from $28 to $12 while maintaining an “overweight” rating, implying roughly 37.8% upside from the prior close.
• Analyst sentiment remains generally positive, with seven Buy ratings and five Holds; MarketBeat reports a “Moderate Buy” consensus and an average target price of $21.40.
• Alignment Healthcare exceeded quarterly expectations, reporting $0.17 in earnings per share versus a $0.13 estimate and $1.34 billion in revenue, up 31.6% year over year. The stock opened at $8.71, near its 12-month low, while insiders have sold more than 1 million shares over the past three months.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) had its price objective lowered by investment analysts at KeyCorp from $28.00 to $12.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has an "overweight" rating on the stock. KeyCorp's price objective points to a potential upside of 37.77% from the company's previous close.

A number of other equities research analysts have also issued reports on the company. JPMorgan Chase & Co. cut their price target on Alignment Healthcare from $26.00 to $22.00 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. Raymond James Financial downgraded Alignment Healthcare from a "strong-buy" rating to an "outperform" rating and decreased their target price for the company from $22.00 to $19.00 in a research note on Monday, August 3rd. UBS Group restated a "neutral" rating on shares of Alignment Healthcare in a research note on Wednesday, July 8th. Zacks Research cut shares of Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Finally, TD Cowen reaffirmed a "buy" rating on shares of Alignment Healthcare in a research note on Wednesday, September 16th. Seven equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $21.40.

Alignment Healthcare Trading Up 1.9%

Alignment Healthcare stock opened at $8.71 on Friday. Alignment Healthcare has a 12-month low of $7.37 and a 12-month high of $25.12. The firm has a market capitalization of $1.81 billion, a price-to-earnings ratio of 45.84 and a beta of 1.14. The firm has a 50 day moving average of $11.64 and a 200 day moving average of $16.70. 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 issued its quarterly earnings results on Thursday, July 30th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.04. The business had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.31 billion. Alignment Healthcare had a net margin of 0.89% and a return on equity of 20.02%. The company's revenue for the quarter was up 31.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.07 earnings per share. As a group, research analysts predict that Alignment Healthcare will post 0.17 earnings per share for the current year.

Insider Buying and Selling at Alignment Healthcare

In other news, insider Hyong Kim sold 32,479 shares of the business's stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $8.30, for a total value of $269,575.70. Following the sale, the insider directly owned 299,271 shares in the company, valued at $2,483,949.30. The trade was a 9.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO John E. Kao sold 27,400 shares of the stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $13.00, for a total transaction of $356,200.00. Following the completion of the transaction, the chief executive officer directly owned 590,766 shares of the company's stock, valued at approximately $7,679,958. The trade was a 4.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,061,967 shares of company stock worth $13,642,490. Company insiders own 5.20% of the company's stock.

Institutional Investors Weigh In On Alignment Healthcare

Institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP increased its position in shares of Alignment Healthcare by 9.8% during the 2nd quarter. Wellington Management Group LLP now owns 18,780,363 shares of the company's stock valued at $447,160,000 after purchasing an additional 1,681,427 shares during the last quarter. William Blair Investment Management LLC purchased a new position in Alignment Healthcare during the second quarter worth $184,799,000. Danica Pension Livsforsikringsaktieselskab purchased a new position in Alignment Healthcare during the second quarter worth $87,794,000. Bank of New York Mellon Corp purchased a new position in Alignment Healthcare during the second quarter worth $87,077,000. Finally, Bank of America Corp DE increased its position 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 valued at $56,660,000 after acquiring an additional 1,961,778 shares during the last quarter. 86.19% of the stock is owned by institutional investors.

About Alignment Healthcare

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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