Alignment Healthcare, Inc. (NASDAQ:ALHC) Stock Has Average Target Price of $19.18

Key Points

• Analysts rate Alignment Healthcare “Moderate Buy,” with seven buy ratings and five holds; the average 12-month price target is $19.18 versus a recent share price of $7.55.
• The company reported quarterly EPS of $0.17, beating estimates of $0.13, while revenue rose 31.6% year over year to $1.34 billion.
• Institutional investors own 86.19% of the stock, but insiders sold more than $13.6 million in shares over the past 90 days. Recent analyst downgrades and concerns over a California Medicare Advantage plan’s 3.5-star rating remain key risks.

Shares of Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) have earned an average recommendation of "Moderate Buy" from the twelve ratings firms that are presently covering the company, MarketBeat reports. Five analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $19.18.

A number of research analysts have commented on the stock. Raymond James Financial lowered shares of Alignment Healthcare from a "strong-buy" rating to an "outperform" rating and dropped their price objective for the company from $22.00 to $19.00 in a research note on Monday, August 3rd. TD Cowen reiterated a "buy" rating on shares of Alignment Healthcare in a research note on Wednesday, September 16th. UBS Group reissued a "neutral" rating on shares of Alignment Healthcare in a report on Wednesday, July 8th. William Blair downgraded Alignment Healthcare from an "outperform" rating to a "market perform" rating in a research note on Friday. Finally, Barclays decreased their price objective on Alignment Healthcare from $16.00 to $10.00 and set an "equal weight" rating for the company in a research report on Tuesday.

Insider Buying and Selling

In other Alignment Healthcare news, CEO John E. Kao sold 27,400 shares of the company's stock in a transaction on 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 owned 590,766 shares in the company, valued at approximately $7,679,958. This represents a 4.43% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Joseph S. Konowiecki sold 23,511 shares of the firm's stock in a transaction 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 completion of the sale, the executive vice president owned 1,080,305 shares of the company's stock, valued at $9,301,426.05. This trade represents a 2.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 1,061,967 shares of company stock valued at $13,642,490 in the last ninety days. Company insiders own 5.20% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ALHC. William Blair Investment Management LLC acquired a new stake in Alignment Healthcare in the second quarter valued at about $184,799,000. Danica Pension Livsforsikringsaktieselskab purchased a new position in shares of Alignment Healthcare during the 2nd quarter worth approximately $87,794,000. Bank of New York Mellon Corp purchased a new position in shares of Alignment Healthcare during the 2nd quarter worth approximately $87,077,000. Bank of America Corp DE lifted its holdings in shares of Alignment Healthcare by 156.5% in the 1st quarter. Bank of America Corp DE now owns 3,215,667 shares of the company's stock valued at $56,660,000 after buying an additional 1,961,778 shares during the period. Finally, Allspring Global Investments Holdings LLC lifted its holdings in shares of Alignment Healthcare by 276.7% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 2,458,400 shares of the company's stock valued at $43,882,000 after buying an additional 1,805,752 shares during the period. 86.19% of the stock is currently owned by institutional investors and hedge funds.

Alignment Healthcare Stock Performance

Shares of ALHC opened at $7.55 on Friday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.22. The firm has a market cap of $1.57 billion, a PE ratio of 39.74 and a beta of 1.14. The company's 50 day simple moving average is $11.49 and its 200-day simple moving average is $16.63. Alignment Healthcare has a 12-month low of $6.01 and a 12-month high of $25.12.

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

More Alignment Healthcare News

Here are the key news stories impacting Alignment Healthcare this week:

• Positive Sentiment: Six of Alignment Healthcare’s seven eligible Medicare Advantage contracts earned CMS 2027 ratings of 4 Stars or higher, including three plans rated 4.5 Stars. The contracts cover Arizona, California, Nevada, North Carolina and Texas. Alignment Healthcare Earns 4 Stars or Higher for Six of Seven Eligible Medicare Advantage Contracts
• Positive Sentiment: JPMorgan lowered its price target from $22 to $10 but maintained an “overweight” rating, while KeyCorp reduced its target from $28 to $12 and also kept an “overweight” rating. These targets imply substantial upside from recent levels. Analyst Comments on Alignment Healthcare
• Neutral Sentiment: A reported October short-interest figure showed zero shares short and a zero-day days-to-cover ratio. That data suggests short covering is not a significant explanation for the session’s trading, although the figure appears inconsistent with the report’s description of a “significant increase.”
• Negative Sentiment: Alignment’s California H3815 HMO contract received a 3.5-Star rating, below the 4-Star threshold that can affect Medicare Advantage enrollment appeal and quality-related payments. The company disputes the result and plans to pursue administrative and legal remedies, but investors are concerned about potential effects on membership, revenue and future bonuses. Alignment Healthcare Stock Falls on 2027 Medicare Star Ratings
• Negative Sentiment: William Blair downgraded the stock to “Market Perform,” adding to the pressure from sharply reduced price targets. The market’s reaction indicates that the weaker California rating is outweighing the company’s otherwise strong plan-rating performance. William Blair Downgrades Alignment Healthcare
• Negative Sentiment: Chief Medical Officer Hyong Kim sold 32,479 shares to cover tax withholding on vested equity awards. The transaction is relatively small and tax-related, but it adds to investor scrutiny after recent insider selling. Alignment Healthcare Insider Share Sale

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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