Hennessy Advisors Inc. Invests $7.85 Million in Alignment Healthcare, Inc. $ALHC

Key Points

• Hennessy Advisors Inc. has invested approximately $7.85 million in Alignment Healthcare, acquiring 560,900 shares, representing about 0.28% of the company's stock.
• Alignment Healthcare reported a 49.0% year-over-year increase in quarterly revenue, reaching $1.02 billion, while also surpassing analysts' earnings estimates.
• Insider sales included CEO John E. Kao selling 355,018 shares valued at $5.83 million, indicating a 7.26% decrease in his stake in the company.

Hennessy Advisors Inc. acquired a new stake in Alignment Healthcare, Inc. (NASDAQ:ALHC - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 560,900 shares of the company's stock, valued at approximately $7,853,000. Hennessy Advisors Inc. owned about 0.28% of Alignment Healthcare at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of ALHC. Invesco Ltd. raised its holdings in Alignment Healthcare by 1,415.7% in the 1st quarter. Invesco Ltd. now owns 1,875,790 shares of the company's stock valued at $34,927,000 after acquiring an additional 1,752,033 shares during the last quarter. Vanguard Group Inc. raised its holdings in Alignment Healthcare by 13.2% in the 1st quarter. Vanguard Group Inc. now owns 11,113,896 shares of the company's stock valued at $206,941,000 after acquiring an additional 1,295,825 shares during the last quarter. 8 Knots Management LLC raised its holdings in Alignment Healthcare by 28.9% in the 1st quarter. 8 Knots Management LLC now owns 4,715,472 shares of the company's stock valued at $87,802,000 after acquiring an additional 1,056,777 shares during the last quarter. Voya Investment Management LLC raised its holdings in Alignment Healthcare by 408.3% in the 1st quarter. Voya Investment Management LLC now owns 1,293,414 shares of the company's stock valued at $24,083,000 after acquiring an additional 1,038,940 shares during the last quarter. Finally, Assenagon Asset Management S.A. raised its holdings in Alignment Healthcare by 124.8% in the 2nd quarter. Assenagon Asset Management S.A. now owns 1,869,035 shares of the company's stock valued at $26,166,000 after acquiring an additional 1,037,638 shares during the last quarter. Institutional investors and hedge funds own 86.19% of the company's stock.

Alignment Healthcare Stock Performance

NASDAQ:ALHC opened at $16.62 on Friday. The company has a debt-to-equity ratio of 2.29, a quick ratio of 1.66 and a current ratio of 1.66. The stock has a market capitalization of $3.29 billion, a P/E ratio of -59.36 and a beta of 1.18. The company has a 50 day moving average price of $15.59 and a 200 day moving average price of $15.67. Alignment Healthcare, Inc. has a fifty-two week low of $10.11 and a fifty-two week high of $21.06.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.07 earnings per share for the quarter, topping analysts' consensus estimates of ($0.07) by $0.14. The firm had revenue of $1.02 billion during the quarter, compared to analysts' expectations of $960.25 million. Alignment Healthcare had a negative net margin of 1.53% and a negative return on equity of 43.68%. The firm's quarterly revenue was up 49.0% on a year-over-year basis. During the same quarter last year, the company posted ($0.13) EPS. Alignment Healthcare has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Equities research analysts forecast that Alignment Healthcare, Inc. will post -0.69 EPS for the current year.

Insider Activity

In related news, CEO John E. Kao sold 355,018 shares of the stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $16.41, for a total transaction of $5,825,845.38. Following the completion of the transaction, the chief executive officer owned 4,533,568 shares of the company's stock, valued at approximately $74,395,850.88. This trade represents a 7.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Robert L. Scavo sold 29,535 shares of the stock in a transaction that occurred on Wednesday, September 10th. The stock was sold at an average price of $16.41, for a total transaction of $484,669.35. Following the transaction, the insider directly owned 572,555 shares of the company's stock, valued at $9,395,627.55. The trade was a 4.91% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 7,388,173 shares of company stock worth $118,068,256 in the last three months. 7.00% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. KeyCorp upgraded shares of Alignment Healthcare from a "sector weight" rating to an "overweight" rating and set a $21.00 price objective for the company in a report on Monday, August 25th. Wall Street Zen cut shares of Alignment Healthcare from a "buy" rating to a "hold" rating in a research note on Sunday, August 10th. Barclays raised shares of Alignment Healthcare from an "underweight" rating to an "equal weight" rating and increased their price target for the company from $9.00 to $13.00 in a research note on Thursday, July 31st. Weiss Ratings reissued a "sell (d-)" rating on shares of Alignment Healthcare in a research note on Saturday, September 27th. Finally, Zacks Research raised shares of Alignment Healthcare from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 29th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $18.83.

Alignment Healthcare Profile

Alignment Healthcare, Inc, a tech-enabled Medicare advantage company, operates consumer-centric health care platform for seniors in the United States. It provides customized health care designed to meet the needs of a diverse array of seniors through its Medicare advantage plans. The company was founded in 2013 and is based in Orange, California.

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