Alignment Healthcare Target of Unusually Large Options Trading (NASDAQ:ALHC)

Key Points

• Unusual options activity: Traders purchased 19,456 Alignment Healthcare call options, roughly 996% above the average daily volume, even as the stock fell 22.2% to $10.07 on heavy trading.
• Quarterly performance exceeded expectations: Alignment Healthcare reported $0.17 in quarterly EPS versus a $0.13 consensus estimate, while revenue rose 31.6% year over year to $1.34 billion.
• Analyst outlook remains moderately bullish: The stock has a consensus “Moderate Buy” rating and an average price target of $23.60, although insiders sold more than 1.3 million shares worth approximately $19.9 million over the past 90 days.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) was the target of some unusual options trading activity on Tuesday. Traders bought 19,456 call options on the stock. This is an increase of approximately 996% compared to the average daily volume of 1,775 call options.

Alignment Healthcare Trading Down 22.2%

Shares of Alignment Healthcare stock traded down $2.87 during mid-day trading on Tuesday, hitting $10.07. 12,889,357 shares of the stock were exchanged, compared to its average volume of 4,604,944. Alignment Healthcare has a twelve month low of $9.98 and a twelve month high of $25.12. The stock has a market capitalization of $2.09 billion, a price-to-earnings ratio of 52.94 and a beta of 1.11. The company has a 50-day simple moving average of $15.94 and a 200 day simple moving average of $17.97. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.22.

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, beating the consensus estimate 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 analysts' expectations of $1.31 billion. During the same quarter in the previous year, the business earned $0.07 EPS. The firm's revenue was up 31.6% on a year-over-year basis. Research analysts forecast that Alignment Healthcare will post 0.17 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. TD Cowen reiterated a "buy" rating on shares of Alignment Healthcare in a research note on Monday, August 3rd. Zacks Research cut shares of Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. UBS Group reissued a "neutral" rating on shares of Alignment Healthcare in a report on Wednesday, July 8th. Weiss Ratings restated a "hold (c-)" rating on shares of Alignment Healthcare in a research report on Tuesday, August 4th. Finally, Barclays decreased their price objective on 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. Seven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $23.60.

Insiders Place Their Bets

In other news, EVP Joseph Konowiecki sold 25,000 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $24.00, for a total value of $600,000.00. Following the sale, the executive vice president directly owned 1,103,816 shares in the company, valued at approximately $26,491,584. This trade represents a 2.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Dawn Maroney sold 122,707 shares of the company's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $12.68, for a total value of $1,555,924.76. Following the sale, the president owned 794,606 shares in the company, valued at approximately $10,075,604.08. This trade represents a 13.38% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,326,577 shares of company stock worth $19,907,564 over the last 90 days. Corporate insiders own 5.20% of the company's stock.

Hedge Funds Weigh In On Alignment Healthcare

Hedge funds and other institutional investors have recently made changes to their positions in the business. WINTON GROUP Ltd acquired a new position in shares of Alignment Healthcare during the second quarter worth about $1,164,000. Arizona State Retirement System raised its holdings in Alignment Healthcare by 15.8% in the second quarter. Arizona State Retirement System now owns 53,553 shares of the company's stock valued at $1,275,000 after acquiring an additional 7,318 shares in the last quarter. Nykredit A S acquired a new stake in shares of Alignment Healthcare in the 2nd quarter valued at about $36,000. Corient Private Wealth LP increased its holdings in shares of Alignment Healthcare by 128.2% in the 2nd quarter. Corient Private Wealth LP now owns 136,505 shares of the company's stock valued at $3,250,000 after acquiring an additional 76,677 shares during the last quarter. Finally, HighTower Advisors LLC bought a new position in shares of Alignment Healthcare in the 2nd quarter worth about $755,000. Institutional investors and hedge funds own 86.19% of the company's stock.

About Alignment Healthcare

Alignment Healthcare, Inc is a technology-enabled healthcare company that provides Medicare Advantage health plans and care-management services for older adults. Through its Alignment Health Plan subsidiary, the company offers insurance coverage designed for Medicare-eligible members, including primary and specialty care coordination, prescription drug benefits, preventive services and access to a network of healthcare providers.

The company combines health-plan operations with proprietary technology intended to support personalized care.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.