Traders Purchase High Volume of Call Options on Alignment Healthcare (NASDAQ:ALHC)

Key Points

• Unusual options activity: Traders purchased 30,068 call options on Alignment Healthcare, roughly 1,049% above the typical daily volume of 2,617 contracts.
• Analyst outlook remains moderately bullish: Seven analysts rate the stock Buy and four rate it Hold, producing a consensus “Moderate Buy” rating and an average price target of $23.60, despite several recent target and rating reductions.
• Shares have declined sharply: ALHC opened at $7.91, near its $7.37 one-year low, while insiders sold more than 1.32 million shares worth approximately $19.3 million over the past three months, primarily to cover tax obligations on vested equity awards.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) saw some unusual options trading on Wednesday. Stock traders acquired 30,068 call options on the stock. This is an increase of approximately 1,049% compared to the typical daily volume of 2,617 call options.

Analyst Upgrades and Downgrades

ALHC has been the subject of a number of recent research reports. Zacks Research lowered Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Weiss Ratings raised Alignment Healthcare from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday. Raymond James Financial cut Alignment Healthcare from a "strong-buy" rating to an "outperform" rating and reduced their price target for the company from $22.00 to $19.00 in a research report on Monday, August 3rd. JPMorgan Chase & Co. decreased 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 report on Saturday, August 1st. 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.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $23.60.

Alignment Healthcare Trading Down 0.3%

ALHC opened at $7.91 on Wednesday. The firm has a market capitalization of $1.64 billion, a price-to-earnings ratio of 41.63 and a beta of 1.11. The business has a 50 day simple moving average of $13.16 and a two-hundred day simple moving average of $17.16. Alignment Healthcare has a one year low of $7.37 and a one year high of $25.12. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.70 and a quick ratio of 1.70.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.17 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.31 billion. During the same quarter in the prior year, the company earned $0.07 EPS. The business's revenue was up 31.6% compared to the same quarter last year. Analysts predict that Alignment Healthcare will post 0.17 EPS for the current year.

Insider Activity

In related news, President Dawn Maroney sold 122,707 shares of Alignment Healthcare stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $12.68, for a total transaction of $1,555,924.76. Following the sale, the president directly owned 794,606 shares in the company, valued at $10,075,604.08. This trade represents a 13.38% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Joseph Konowiecki sold 23,511 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $8.61, for a total value of $202,429.71. Following the completion of the sale, the executive vice president directly owned 1,080,305 shares of the company's stock, valued at approximately $9,301,426.05. The trade was a 2.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 1,327,488 shares of company stock valued at $19,291,194. 5.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Alignment Healthcare

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc lifted its position in shares of Alignment Healthcare by 463.3% in the second quarter. Versant Capital Management Inc now owns 1,380 shares of the company's stock valued at $33,000 after acquiring an additional 1,135 shares in the last quarter. Nykredit A S purchased a new position in Alignment Healthcare in the second quarter worth about $36,000. Signature Equity Partners LLC purchased a new position in shares of Alignment Healthcare in the 1st quarter worth approximately $46,000. GAMMA Investing LLC increased 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 acquiring an additional 1,070 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its holdings in Alignment Healthcare by 51,757.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,630 shares of the company's stock valued at $72,000 after purchasing an additional 3,623 shares during the last quarter. 86.19% of the stock is owned by hedge funds and other institutional investors.

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.

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