Hsbc Holdings PLC Invests $1.76 Million in Alignment Healthcare, Inc. $ALHC

Key Points

• HSBC Holdings initiated a position in Alignment Healthcare, buying 73,936 shares worth approximately $1.76 million during the second quarter. Institutional investors collectively own 86.19% of ALHC.
• Analysts maintain a generally positive outlook, with seven Buy ratings and four Holds, producing a “Moderate Buy” consensus and an average price target of $23.60, despite several recent target reductions.
• Alignment Healthcare exceeded quarterly expectations, reporting adjusted EPS of $0.17 versus $0.13 estimated and revenue of $1.34 billion, up 31.6% year over year. However, insiders sold more than 1 million shares worth $18.6 million over the past 90 days.

Hsbc Holdings PLC bought a new position in shares of Alignment Healthcare, Inc. (NASDAQ:ALHC - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 73,936 shares of the company's stock, valued at approximately $1,765,000.

Other institutional investors also recently bought and sold shares of the company. PDT Partners LLC bought a new stake in Alignment Healthcare in the 2nd quarter valued at $2,155,000. Osterweis Capital Management Inc. bought a new position in shares of Alignment Healthcare during the 2nd quarter valued at about $14,381,000. Legal & General Group Plc purchased a new position in shares of Alignment Healthcare during the second quarter valued at about $9,664,000. The Manufacturers Life Insurance Company purchased a new position in shares of Alignment Healthcare during the second quarter valued at about $4,827,000. Finally, Algert Global LLC increased its holdings in shares of Alignment Healthcare by 119.2% in the second quarter. Algert Global LLC now owns 153,730 shares of the company's stock worth $3,660,000 after purchasing an additional 83,608 shares during the last quarter. 86.19% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on ALHC. JPMorgan Chase & Co. dropped 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. TD Cowen reiterated a "buy" rating on shares of Alignment Healthcare in a research report on Monday, August 3rd. Raymond James Financial cut shares of Alignment Healthcare from a "strong-buy" rating to an "outperform" rating and reduced their price target for the stock from $22.00 to $19.00 in a research report on Monday, August 3rd. Zacks Research lowered shares of Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Alignment Healthcare in a report on Tuesday, August 4th. Seven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $23.60.

Insider Activity

In related news, CEO John E. Kao sold 298,000 shares of the company's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $13.88, for a total transaction of $4,136,240.00. Following the transaction, the chief executive officer directly owned 790,766 shares in the company, valued at approximately $10,975,832.08. This represents a 27.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Joseph S. Konowiecki sold 25,000 shares of the firm's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $24.00, for a total transaction of $600,000.00. Following the completion of the sale, the executive vice president directly owned 1,103,816 shares of the company's stock, valued at approximately $26,491,584. The trade was a 2.21% 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 sold 1,009,951 shares of company stock worth $18,597,287 in the last 90 days. Company insiders own 5.20% of the company's stock.

Alignment Healthcare Stock Performance

NASDAQ ALHC opened at $13.62 on Monday. The business's 50 day moving average price is $18.09 and its 200-day moving average price is $18.52. Alignment Healthcare, Inc. has a fifty-two week low of $12.70 and a fifty-two week high of $25.12. The company has a market cap of $2.83 billion, a P/E ratio of 71.69 and a beta of 1.10. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.70 and a current ratio of 1.70.

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 (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 during the quarter, compared to the consensus estimate of $1.31 billion. During the same period last year, the company earned $0.07 earnings per share. Alignment Healthcare's revenue was up 31.6% on a year-over-year basis. Sell-side analysts predict that Alignment Healthcare, Inc. will post 0.17 earnings per share for the current year.

About Alignment Healthcare

Alignment Healthcare, Inc NASDAQ: ALHC is a health care company specializing in value-based care for Medicare Advantage beneficiaries. The company leverages an integrated care model that combines in-home clinical services, telehealth capabilities and digital health tools to manage chronic conditions, improve outcomes and enhance patient experience.

At the core of Alignment Healthcare's approach is a proprietary technology platform that aggregates real-time clinical and claims data to support preventive care, risk stratification and personalized care plans.

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