Alignment Healthcare, Inc. (NASDAQ:ALHC) Stock Has Consensus Price Target of $14.00

Key Points

• Analyst sentiment is mixed: 13 firms rate Alignment Healthcare “Hold” on average, with six Buy, six Hold and one Sell rating; the average 12-month price target is $14.
• Quarterly revenue beat expectations: Revenue rose 36.7% year over year to $1.36 billion, topping the $1.31 billion consensus, while adjusted performance matched expectations at a loss of $0.04 per share.
• Insiders sold about 1.06 million shares worth $13.6 million over the past 90 days. The reported CEO sale was under a pre-arranged trading plan, and the president’s sale covered tax withholding obligations.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) has been given an average recommendation of "Hold" by the thirteen research firms that are currently covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, six have given a hold recommendation and six have issued a buy recommendation on the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $14.00.

A number of research analysts have recently issued reports on the stock. Wall Street Zen cut shares of Alignment Healthcare from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. William Blair lowered Alignment Healthcare from an "outperform" rating to a "market perform" rating in a research report on Friday, October 9th. Needham & Company LLC initiated coverage on Alignment Healthcare in a report on Wednesday, October 28th. They set a "hold" rating for the company. KeyCorp downgraded Alignment Healthcare from an "overweight" rating to a "sector weight" rating in a research report on Friday, October 30th. Finally, TD Cowen cut their price objective on Alignment Healthcare from $12.00 to $10.00 and set a "buy" rating for the company in a research report on Monday.

Alignment Healthcare Trading Up 10.1%

Shares of Alignment Healthcare stock opened at $8.14 on Thursday. The stock has a market capitalization of $1.70 billion, a P/E ratio of 62.62 and a beta of 1.07. The company has a quick ratio of 1.71, a current ratio of 1.71 and a debt-to-equity ratio of 1.17. The company has a 50-day simple moving average of $9.52 and a 200 day simple moving average of $16.61. 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 quarterly earnings results on Thursday, October 29th. The company reported ($0.04) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.04). The firm had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.31 billion. Alignment Healthcare had a net margin of 0.59% and a return on equity of 12.46%. The firm's quarterly revenue was up 36.7% on a year-over-year basis. During the same period last year, the firm posted $0.02 EPS. Research analysts expect that Alignment Healthcare will post 0.09 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, President Dawn Maroney sold 122,707 shares of Alignment Healthcare stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $12.68, for a total value of $1,555,924.76. Following the completion of the transaction, the president directly owned 794,606 shares of the company's stock, valued at $10,075,604.08. The trade was a 13.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO John Kao sold 27,400 shares of the company's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $13.00, for a total transaction of $356,200.00. Following the transaction, the chief executive officer owned 590,766 shares in the company, valued at approximately $7,679,958. This trade represents 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. Insiders have sold a total of 1,061,967 shares of company stock worth $13,642,490 over the last ninety days. Company insiders own 5.20% of the company's stock.

Institutional Investors Weigh In On Alignment Healthcare

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ALHC. Bank of America Corp DE raised its position in shares of Alignment Healthcare by 156.5% during 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 acquiring an additional 1,961,778 shares during the last quarter. Formula Growth Ltd. bought a new position in shares of Alignment Healthcare in the 2nd quarter worth $5,270,000. Bank of New York Mellon Corp bought a new position in shares of Alignment Healthcare in the 2nd quarter worth $87,077,000. Principal Financial Group Inc. boosted its position in shares of Alignment Healthcare by 36.5% in the 1st quarter. Principal Financial Group Inc. now owns 544,274 shares of the company's stock worth $9,590,000 after purchasing an additional 145,491 shares during the last quarter. Finally, Corient Private Wealth LP bought a new position in shares of Alignment Healthcare in the 2nd quarter worth $3,247,000. Institutional investors and hedge funds own 86.19% of the company's stock.

Alignment Healthcare Company Profile

Alignment Healthcare, Inc is a technology-enabled health insurance company focused on providing Medicare Advantage plans for seniors. The company combines health plan coverage with care coordination and clinical services designed to help members manage chronic conditions, access providers and navigate the health care system.

Its offerings include Medicare Advantage plans, supplemental benefits and member support services. Alignment also uses its proprietary technology platform, including the Alignment Virtual Application (AVA), to support care teams, analyze health information and help deliver more personalized services to members.

Founded in 2013, Alignment Healthcare serves Medicare-eligible consumers in selected markets, including California, Florida, Nevada and North Carolina.

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