JPMorgan Chase & Co. Lowers Alignment Healthcare (NASDAQ:ALHC) Price Target to $22.00

Key Points

• JPMorgan lowered Alignment Healthcare’s price target from $26 to $22 while maintaining an “overweight” rating, implying roughly 60% upside from the prior close.
• ALHC shares fell 5.5% to $13.77, well below the analyst consensus price target of $23.60; the broader analyst consensus remains “Moderate Buy.”
• The company exceeded quarterly expectations, reporting $0.17 in EPS versus $0.13 expected and $1.34 billion in revenue, up 31.6% year over year.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) had its target price lowered by investment analysts at JPMorgan Chase & Co. from $26.00 to $22.00 in a note issued to investors on Tuesday,Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 59.83% from the stock's previous close.

Several other research firms have also weighed in on ALHC. Wolfe Research started coverage on Alignment Healthcare in a research report on Friday, April 17th. They set an "outperform" rating and a $24.00 price target on the stock. KeyCorp reissued an "overweight" rating on shares of Alignment Healthcare in a research report on Wednesday, June 10th. Barclays lowered their price target on shares of Alignment Healthcare from $19.00 to $16.00 and set an "equal weight" rating for the company in a research report on Tuesday, May 26th. Wall Street Zen lowered shares of Alignment Healthcare from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, Zacks Research cut shares of Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Seven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $23.60.

Alignment Healthcare Trading Down 5.5%

Shares of ALHC traded down $0.80 during trading hours on Tuesday, reaching $13.77. 5,974,613 shares of the company traded hands, compared to its average volume of 4,516,670. Alignment Healthcare has a 12 month low of $13.05 and a 12 month high of $25.12. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.22. The company's fifty day moving average price is $19.67 and its two-hundred day moving average price is $19.71. The company has a market capitalization of $2.85 billion, a price-to-earnings ratio of 72.27, a price-to-earnings-growth ratio of 1.98 and a beta of 1.10.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last released 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. The company had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.31 billion. Alignment Healthcare had a net margin of 0.89% and a return on equity of 20.02%. Alignment Healthcare's revenue was up 31.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.07 earnings per share. Equities research analysts predict that Alignment Healthcare will post 0.2 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Alignment Healthcare news, insider Mark D. Kent bought 14,848 shares of the business's stock in a transaction on Tuesday, June 2nd. The shares were acquired at an average cost of $13.31 per share, for a total transaction of $197,626.88. Following the purchase, the insider owned 14,848 shares in the company, valued at approximately $197,626.88. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Hyong Kim sold 35,951 shares of Alignment Healthcare stock in a transaction on Friday, June 12th. The stock was sold at an average price of $19.86, for a total value of $713,986.86. Following the completion of the sale, the insider directly owned 331,750 shares of the company's stock, valued at approximately $6,588,555. The trade was a 9.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 1,039,951 shares of company stock valued at $19,976,967. 5.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alignment Healthcare

Several institutional investors have recently modified their holdings of ALHC. Handelsbanken Fonder AB lifted its stake in Alignment Healthcare by 85.7% during the 2nd quarter. Handelsbanken Fonder AB now owns 55,700 shares of the company's stock valued at $1,326,000 after acquiring an additional 25,700 shares during the period. GAMMA Investing LLC lifted its position in Alignment Healthcare by 46.6% during the second quarter. GAMMA Investing LLC now owns 3,368 shares of the company's stock valued at $80,000 after purchasing an additional 1,070 shares during the period. Versant Capital Management Inc lifted its position in Alignment Healthcare by 463.3% during the second quarter. Versant Capital Management Inc now owns 1,380 shares of the company's stock valued at $33,000 after purchasing an additional 1,135 shares during the period. Bank of America Corp DE boosted its holdings in Alignment Healthcare by 156.5% in the first quarter. Bank of America Corp DE now owns 3,215,667 shares of the company's stock worth $56,660,000 after purchasing an additional 1,961,778 shares during the last quarter. Finally, Edgestream Partners L.P. bought a new stake in Alignment Healthcare in the 1st quarter worth approximately $4,852,000. 86.19% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Alignment Healthcare

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

• Positive Sentiment: Oversold conditions could support a rebound: Zacks reported that ALHC is technically oversold after declining 37.6% in four weeks. The report also noted that Wall Street analysts have been raising earnings estimates, which could provide a near-term catalyst if selling pressure eases. Zacks turnaround analysis
• Positive Sentiment: Raymond James still sees upside: Although the firm lowered its rating from “strong buy” to “outperform” and cut its price target from $22 to $19, the revised target remains well above the recently cited market price, implying substantial potential appreciation. The change nevertheless signals reduced conviction. Analyst rating report

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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