Insider Selling: Alignment Healthcare (NASDAQ:ALHC) CEO Sells 298,000 Shares of Stock

Key Points

• CEO John Kao sold 298,000 Alignment Healthcare shares at an average price of $13.88, generating approximately $4.14 million. The Rule 10b5-1 transaction reduced his direct ownership by 27.37% to 790,766 shares.
• Alignment Healthcare shares fell 4.1% to $13.78 during Monday trading, while the company’s latest quarterly results exceeded expectations: EPS was $0.17 versus $0.13 expected, and revenue rose 31.6% year over year to $1.34 billion.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $23.60, although some firms recently downgraded the stock or lowered price targets. Institutional investors own 86.19% of the company.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) CEO John Kao sold 298,000 shares of the company's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $13.88, for a total transaction of $4,136,240.00. Following the sale, the chief executive officer directly owned 790,766 shares in the company, valued at approximately $10,975,832.08. The trade was a 27.37% decrease in their ownership of the stock. The sale was disclosed in a document filed 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.

Alignment Healthcare Stock Down 4.1%

Alignment Healthcare stock traded down $0.59 during mid-day trading on Monday, reaching $13.78. 5,918,702 shares of the company's stock were exchanged, compared to its average volume of 4,592,385. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.22. Alignment Healthcare, Inc. has a twelve month low of $13.05 and a twelve month high of $25.12. The company has a market cap of $2.86 billion, a P/E ratio of 72.53 and a beta of 1.10. The company has a fifty day moving average of $19.51 and a 200-day moving average of $19.46.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.13 by $0.04. Alignment Healthcare had a net margin of 0.89% and a return on equity of 20.02%. The business had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter in the previous year, the firm posted $0.07 earnings per share. The company's quarterly revenue was up 31.6% compared to the same quarter last year. Sell-side analysts expect that Alignment Healthcare, Inc. will post 0.17 EPS for the current year.

Hedge Funds Weigh In On Alignment Healthcare

Institutional investors and hedge funds have recently modified their holdings of the company. Danica Pension Livsforsikringsaktieselskab acquired a new stake in Alignment Healthcare in the second quarter valued at $87,794,000. Citizens Financial Group Inc. RI purchased a new stake in Alignment Healthcare during the 2nd quarter worth about $793,000. Deutsche Bank AG acquired a new position in shares of Alignment Healthcare during the 2nd quarter worth about $5,151,000. Bank of New York Mellon Corp acquired a new position in shares of Alignment Healthcare during the 2nd quarter worth about $87,077,000. Finally, State of Wyoming purchased a new position in shares of Alignment Healthcare in the 2nd quarter valued at about $674,000. Institutional investors and hedge funds own 86.19% of the company's stock.

Analysts Set New Price Targets

ALHC has been the topic of several recent research reports. UBS Group restated a "neutral" rating on shares of Alignment Healthcare in a report on Wednesday, July 8th. KeyCorp reissued an "overweight" rating on shares of Alignment Healthcare in a research report on Wednesday, June 10th. Zacks Research lowered shares of Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. JPMorgan Chase & Co. reduced their target price on shares of Alignment Healthcare from $26.00 to $22.00 and set an "overweight" rating on the stock in a report on Tuesday, August 4th. Finally, Wall Street Zen downgraded shares of Alignment Healthcare from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Seven analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $23.60.

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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