Alignment Healthcare (NASDAQ:ALHC) Hits New 52-Week Low - Should You Sell?

Key Points

• Alignment Healthcare shares hit a new 52-week low, falling to $12.65 before last trading at $13.03, well below its 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $23.60, although JPMorgan and Barclays recently reduced their targets.
• The company exceeded quarterly earnings and revenue expectations, with revenue up 31.6% year over year, but insiders sold approximately $12.5 million of stock over the past 90 days.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $12.65 and last traded at $13.03, with a volume of 4899195 shares changing hands. The stock had previously closed at $13.46.

Analyst Ratings Changes

ALHC has been the topic of a number of research analyst reports. JPMorgan Chase & Co. lowered their price target on Alignment Healthcare from $26.00 to $22.00 and set an "overweight" rating on the stock in a report on Tuesday, August 4th. UBS Group restated a "neutral" rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Alignment Healthcare in a research note on Tuesday, August 4th. Barclays dropped their target price on Alignment Healthcare from $19.00 to $16.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 26th. Finally, KeyCorp restated an "overweight" rating on shares of Alignment Healthcare in a report on Wednesday, June 10th. Seven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Alignment Healthcare currently has a consensus rating of "Moderate Buy" and an average target price of $23.60.

Alignment Healthcare Stock Performance

The stock has a market cap of $2.70 billion, a P/E ratio of 68.58 and a beta of 1.11. The firm's 50-day moving average is $16.61 and its two-hundred day moving average is $18.13. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.22.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.04. The firm had revenue of $1.34 billion during the quarter, compared to analysts' expectations of $1.31 billion. Alignment Healthcare had a net margin of 0.89% and a return on equity of 20.02%. The company's revenue was up 31.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.07 earnings per share. As a group, research analysts expect that Alignment Healthcare, Inc. will post 0.17 EPS for the current year.

Insider Buying and Selling at Alignment Healthcare

In other Alignment Healthcare news, CEO John E. Kao sold 298,000 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $13.88, for a total transaction of $4,136,240.00. Following the transaction, the chief executive officer directly owned 790,766 shares in the company, valued at $10,975,832.08. This trade represents a 27.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Joseph S. Konowiecki sold 25,000 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $24.00, for a total value of $600,000.00. Following the transaction, the executive vice president 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 711,951 shares of company stock worth $12,530,007 in the last 90 days. 5.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Summit Securities Group LLC bought a new position in shares of Alignment Healthcare in the 4th quarter valued at approximately $26,000. Versant Capital Management Inc boosted 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 worth $33,000 after purchasing an additional 1,135 shares during the period. Nykredit A S acquired a new position in Alignment Healthcare during the second quarter valued at approximately $36,000. Parallel Advisors LLC grew its holdings in Alignment Healthcare by 87.7% during the fourth quarter. Parallel Advisors LLC now owns 1,654 shares of the company's stock valued at $33,000 after purchasing an additional 773 shares during the last quarter. Finally, Larson Financial Group LLC bought a new position in shares of Alignment Healthcare in the third quarter valued at approximately $33,000. Institutional investors and hedge funds own 86.19% of the company's stock.

Alignment Healthcare Company Profile

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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