Alignment Healthcare (NASDAQ:ALHC) Reaches New 12-Month Low - Should You Sell?

Key Points

• Alignment Healthcare shares fell to a new 52-week low of $8.02, trading well below their 50-day and 200-day moving averages. The stock has a $1.73 billion market capitalization and a price-to-earnings ratio of 43.84.
• Despite the sell-off, analysts maintain a “Moderate Buy” consensus with an average price target of $23.60; seven analysts rate the stock Buy and four rate it Hold.
• The company recently exceeded quarterly expectations, reporting $0.17 EPS versus $0.13 expected and $1.34 billion in revenue, up 31.6% year over year. However, insiders sold more than 1.37 million shares worth approximately $20.5 million during the last quarter.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday . The stock traded as low as $8.02 and last traded at $8.33, with a volume of 13584026 shares traded. The stock had previously closed at $8.35.

Analyst Ratings Changes

Several analysts have recently issued reports on the company. TD Cowen reiterated a "buy" rating on shares of Alignment Healthcare in a research note on Wednesday, September 16th. Weiss Ratings restated a "hold (c-)" rating on shares of Alignment Healthcare in a report on Tuesday, August 4th. Zacks Research lowered Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. UBS Group reiterated a "neutral" rating on shares of Alignment Healthcare in a research note on Wednesday, July 8th. Finally, JPMorgan Chase & Co. lowered their price objective on Alignment Healthcare from $26.00 to $22.00 and set an "overweight" rating for the company in a research report on Tuesday, August 4th. Seven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $23.60.

Alignment Healthcare Trading Down 0.2%

The stock has a market cap of $1.73 billion, a price-to-earnings ratio of 43.84 and a beta of 1.11. The business's 50 day moving average is $14.72 and its 200 day moving average is $17.60. 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 quarterly earnings results on Thursday, July 30th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 the consensus estimate of $1.31 billion. During the same period in the previous year, the business earned $0.07 EPS. Alignment Healthcare's revenue for the quarter was up 31.6% on a year-over-year basis. As a group, equities analysts expect that Alignment Healthcare, Inc. will post 0.17 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Alignment Healthcare news, EVP Joseph S. Konowiecki sold 23,511 shares of the firm's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $8.61, for a total transaction of $202,429.71. Following the transaction, the executive vice president owned 1,080,305 shares of the company's stock, valued at approximately $9,301,426.05. This trade represents a 2.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO John E. Kao sold 27,400 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $13.00, for a total value of $356,200.00. Following the transaction, the chief executive officer owned 590,766 shares in the company, valued at $7,679,958. This represents a 4.43% decrease in their position. 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. Over the last quarter, insiders have sold 1,377,488 shares of company stock valued at $20,466,194. 5.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of ALHC. Versant Capital Management Inc raised its holdings 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 in the last quarter. Nykredit A S purchased a new position in Alignment Healthcare in the second quarter valued at about $36,000. Signature Equity Partners LLC acquired a new stake in shares of Alignment Healthcare during the 1st quarter valued at approximately $46,000. Caitong International Asset Management Co. Ltd lifted its position in shares of 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 acquiring an additional 3,623 shares during the period. Finally, GAMMA Investing LLC boosted its stake in shares of Alignment Healthcare by 46.6% during the 2nd quarter. GAMMA Investing LLC now owns 3,368 shares of the company's stock worth $80,000 after acquiring an additional 1,070 shares in the last quarter. Institutional investors and hedge funds own 86.19% of the company's stock.

Alignment Healthcare Company Profile

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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