Alignment Healthcare (NASDAQ:ALHC) Shares Down 6.9% - Here's What Happened

Key Points

• Alignment Healthcare shares fell 6.9% to approximately $7.60, with trading volume down 69% from its average.
• Analyst sentiment remains generally positive: seven analysts rate the stock Buy and four Hold, resulting in a “Moderate Buy” consensus and an average price target of $23.60.
• The company recently exceeded quarterly expectations, reporting $0.17 in EPS versus $0.13 expected and $1.34 billion in revenue, up 31.6% year over year. Insiders sold shares primarily to cover tax obligations, while institutional investors own 86.19% of the stock.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report)'s share price dropped 6.9% during trading on Thursday. The stock traded as low as $7.66 and last traded at $7.5960. Approximately 1,633,482 shares were traded during trading, a decline of 69% from the average daily volume of 5,276,623 shares. The stock had previously closed at $8.16.

Analyst Ratings Changes

Several analysts have weighed in on the company. UBS Group reaffirmed a "neutral" rating on shares of Alignment Healthcare in a report on Wednesday, July 8th. Weiss Ratings upgraded Alignment Healthcare from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, September 25th. Wall Street Zen lowered Alignment Healthcare from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. TD Cowen restated a "buy" rating on shares of Alignment Healthcare in a research report on Wednesday, September 16th. Finally, KeyCorp reaffirmed an "overweight" rating on shares of Alignment Healthcare in a research note on Wednesday, June 10th. Seven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $23.60.

Alignment Healthcare Trading Down 5.1%

The firm has a market cap of $1.61 billion, a P/E ratio of 41.03 and a beta of 1.11. 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 stock has a 50 day moving average of $12.91 and a 200 day moving average of $17.09.

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

Insider Buying and Selling

In other Alignment Healthcare news, President Dawn Maroney sold 122,707 shares of the company's stock in a transaction that occurred on 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 completion of the sale, the president owned 794,606 shares of the company's stock, valued at $10,075,604.08. This represents a 13.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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 transaction of $202,429.71. Following the transaction, the executive vice president owned 1,080,305 shares in the company, valued at $9,301,426.05. The trade was 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 1,327,488 shares of company stock worth $19,291,194 in the last quarter. 5.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Alignment Healthcare

Institutional investors and hedge funds have recently made changes to their positions in the business. WINTON GROUP Ltd purchased a new stake in Alignment Healthcare during the second quarter valued at about $1,164,000. Arizona State Retirement System increased its holdings in shares of Alignment Healthcare by 15.8% in the second quarter. Arizona State Retirement System now owns 53,553 shares of the company's stock worth $1,275,000 after buying an additional 7,318 shares during the period. Nykredit A S purchased a new position in shares of Alignment Healthcare in the second quarter worth about $36,000. Corient Private Wealth LP lifted its stake 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 purchased a new stake in Alignment Healthcare during the 2nd quarter valued at about $755,000. Institutional investors own 86.19% of the company's stock.

Alignment Healthcare Company Profile

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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