Alignment Healthcare (NASDAQ:ALHC) Hits New 52-Week Low After Analyst Downgrade

Key Points

• Alignment Healthcare shares hit a new 52-week low, trading as low as $7.29 after KeyCorp cut its price target from $28 to $12, despite maintaining an overweight rating.
• Analyst sentiment remains mixed but broadly positive: the stock has a consensus “Moderate Buy” rating and an average price target of $21.40, while other firms have also recently lowered their targets.
• Insiders sold shares primarily to cover tax obligations tied to vested equity awards, while institutional ownership remains high at 86.19%. The company’s latest quarter beat earnings and revenue estimates, with revenue up 31.6% year over year.

Shares of Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) hit a new 52-week low during trading on Friday after KeyCorp lowered their price target on the stock from $28.00 to $12.00. KeyCorp currently has an overweight rating on the stock. Alignment Healthcare traded as low as $7.29 and last traded at $6.2860, with a volume of 940382 shares. The stock had previously closed at $8.71.

ALHC has been the topic of a number of other reports. UBS Group restated a "neutral" rating on shares of Alignment Healthcare in a report on Wednesday, July 8th. Barclays decreased their price objective on Alignment Healthcare from $16.00 to $10.00 and set an "equal weight" rating for the company in a report on Tuesday. TD Cowen reissued a "buy" rating on shares of Alignment Healthcare in a research report on Wednesday, September 16th. JPMorgan Chase & Co. cut their target price on Alignment Healthcare from $26.00 to $22.00 and set an "overweight" rating on the stock in a research note on Tuesday, August 4th. Finally, Raymond James Financial downgraded Alignment Healthcare from a "strong-buy" rating to an "outperform" rating and reduced their price target for the stock from $22.00 to $19.00 in a research report on Monday, August 3rd. Seven equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, Alignment Healthcare has a consensus rating of "Moderate Buy" and an average target price of $21.40.

Insider Buying and Selling

In related news, 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 transaction 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 represents a 13.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through 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 that occurred on Thursday, September 17th. The shares were sold at an average price of $8.61, for a total value of $202,429.71. Following the transaction, the executive vice president directly owned 1,080,305 shares of the company's stock, valued at $9,301,426.05. This trade represents a 2.13% decrease in their ownership of the stock. 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. Insiders sold a total of 1,061,967 shares of company stock worth $13,642,490 in the last three months. Insiders own 5.20% of the company's stock.

Hedge Funds Weigh In On Alignment Healthcare

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of America Corp DE boosted its holdings in shares of Alignment Healthcare by 156.5% during the 1st quarter. Bank of America Corp DE now owns 3,215,667 shares of the company's stock worth $56,660,000 after buying an additional 1,961,778 shares during the period. Bank of New York Mellon Corp acquired a new stake in Alignment Healthcare during the second quarter worth approximately $87,077,000. Formula Growth Ltd. acquired a new stake in Alignment Healthcare during the second quarter worth approximately $5,270,000. Principal Financial Group Inc. boosted its holdings in shares of Alignment Healthcare by 36.5% during the first quarter. Principal Financial Group Inc. now owns 544,274 shares of the company's stock worth $9,590,000 after acquiring an additional 145,491 shares during the period. Finally, GSA Capital Partners LLP bought a new stake in shares of Alignment Healthcare during the second quarter worth approximately $2,057,000. 86.19% of the stock is owned by institutional investors.

Alignment Healthcare Stock Down 22.1%

The company has a market cap of $1.41 billion, a price-to-earnings ratio of 35.03 and a beta of 1.14. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.70 and a quick ratio of 1.70. The firm has a 50-day moving average price of $11.64 and a 200 day moving average price of $16.70.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $1.31 billion. During the same period last year, the firm earned $0.07 earnings per share. Alignment Healthcare's revenue for the quarter was up 31.6% compared to the same quarter last year. Sell-side analysts predict that Alignment Healthcare, Inc. will post 0.17 EPS for the current year.

About Alignment Healthcare

Alignment Healthcare, Inc is a technology-enabled Medicare Advantage company focused on providing health coverage and care services for older adults. The company offers Medicare Advantage plans that combine medical benefits with care coordination, wellness support, and other services designed to help members manage their health.

Alignment operates through an integrated healthcare model that uses its proprietary technology platform to support physicians, care teams, and members. Its services include personalized care management, clinical coordination, virtual and in-home support, and member assistance through its concierge-style approach.

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