KeyCorp Has Pessimistic Outlook of Alight Q2 Earnings

Key Points

• KeyCorp cut its Q2 2026 EPS estimate for Alight to $0.52 from $0.60, signaling a more cautious near-term outlook ahead of the company’s earnings.
• The firm still expects earnings growth later on, projecting FY2026 EPS of $4.12 and FY2027 EPS of $5.04, even though it trimmed some near-term forecasts.
• Wall Street views remain mixed on Alight, with the stock carrying a consensus Hold rating and an average target price of $62.57 despite recent analyst changes.

Alight, Inc. (NYSE:ALIT - Free Report) - KeyCorp decreased their Q2 2026 earnings estimates for shares of Alight in a report issued on Thursday, July 2nd. KeyCorp analyst S. Schoenhaus now expects that the company will post earnings per share of $0.52 for the quarter, down from their previous estimate of $0.60. The consensus estimate for Alight's current full-year earnings is $5.60 per share. KeyCorp also issued estimates for Alight's Q3 2026 earnings at $0.87 EPS, Q4 2026 earnings at $1.64 EPS, FY2026 earnings at $4.12 EPS, Q1 2027 earnings at $0.87 EPS, Q2 2027 earnings at $1.07 EPS, Q3 2027 earnings at $1.27 EPS, Q4 2027 earnings at $1.84 EPS and FY2027 earnings at $5.04 EPS.

ALIT has been the subject of a number of other reports. DA Davidson increased their price target on Alight from $2.00 to $40.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Wall Street Zen raised Alight from a "sell" rating to a "hold" rating in a research note on Saturday, April 25th. Finally, Weiss Ratings lowered Alight from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, May 7th. Three analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $62.57.

Alight Trading Up 5.1%

Alight stock opened at $20.00 on Thursday. Alight has a 12-month low of $9.58 and a 12-month high of $120.80. The company has a debt-to-equity ratio of 1.92, a current ratio of 1.42 and a quick ratio of 1.42. The stock has a market capitalization of $534.65 million, a PE ratio of -0.17, a price-to-earnings-growth ratio of 0.30 and a beta of 1.66. The firm has a 50 day simple moving average of $14.88 and a 200-day simple moving average of $20.24.

Hedge Funds Weigh In On Alight

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Strs Ohio acquired a new stake in Alight during the 1st quarter valued at $25,000. EverSource Wealth Advisors LLC boosted its position in shares of Alight by 152.1% in the second quarter. EverSource Wealth Advisors LLC now owns 5,201 shares of the company's stock worth $29,000 after buying an additional 3,138 shares during the period. Danske Bank A S purchased a new position in shares of Alight during the third quarter valued at $31,000. Peapack Gladstone Financial Corp purchased a new position in shares of Alight during the second quarter valued at $64,000. Finally, Jones Financial Companies Lllp grew its holdings in shares of Alight by 1,776.2% during the first quarter. Jones Financial Companies Lllp now owns 11,257 shares of the company's stock valued at $67,000 after buying an additional 10,657 shares in the last quarter. Institutional investors and hedge funds own 96.74% of the company's stock.

Trending Headlines about Alight

Here are the key news stories impacting Alight this week:

• Positive Sentiment: KeyCorp raised several forward earnings estimates for Alight, including FY2027 EPS to $5.04 from $5.00, Q4 2027 EPS to $1.84 from $1.80, Q3 2027 EPS to $1.27 from $1.20, and Q2 2027 EPS to $1.07 from $1.00, suggesting improved expectations for profitability.
• Neutral Sentiment: KeyCorp also kept its broader longer-term outlook on Alight mixed, trimming FY2026 EPS to $4.12 from $4.20 while still projecting earnings growth into 2027.
• Positive Sentiment: Alight and BNY announced an integrated retirement plan solution aimed at improving plan administration and investing support, which could help strengthen the company’s product offering and relationships with retirement-plan clients. Article Title

Alight Company Profile

Alight, Inc NYSE: ALIT is a leading provider of cloud-based human capital and financial solutions designed to help organizations and their employees navigate critical life and work events. The company offers a comprehensive suite of services, including payroll administration, benefits enrollment and management, workforce and analytics solutions, health and welfare support, and financial wellness programs. By integrating advanced technology with expert advisory services, Alight aims to simplify the administration of human resources and benefits functions, improve employee engagement and productivity, and drive cost efficiencies for its clients.

Alight's core platform leverages cloud architecture and automation to deliver scalable and secure solutions that address the needs of mid-sized and large enterprises.

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