Alignment Healthcare (NASDAQ:ALHC) Shares Up 3.7% - Here's Why

Key Points

• Alignment Healthcare shares rose 3.7% to about $13.89, although trading volume was approximately 96% below the average session volume.
• Analysts maintain a generally positive outlook, with seven Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $23.60. JPMorgan lowered its target to $22 while retaining an Overweight rating.
• The company exceeded quarterly expectations, reporting $0.17 in earnings per share versus $0.13 expected and $1.34 billion in revenue, up 31.6% year over year. However, insiders have sold more than 1 million shares over the past 90 days.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report)'s stock price traded up 3.7% on Tuesday . The company traded as high as $13.90 and last traded at $13.8910. 159,481 shares traded hands during mid-day trading, a decline of 96% from the average session volume of 4,527,934 shares. The stock had previously closed at $13.40.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. JPMorgan Chase & Co. dropped their price target 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. UBS Group restated a "neutral" rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. KeyCorp restated an "overweight" rating on shares of Alignment Healthcare in a report on Wednesday, June 10th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Alignment Healthcare in a research note on Tuesday, August 4th. Finally, TD Cowen reissued a "buy" rating on shares of Alignment Healthcare in a report on Monday, August 3rd. Seven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, Alignment Healthcare has an average rating of "Moderate Buy" and a consensus target price of $23.60.

Alignment Healthcare Trading Up 2.8%

The stock has a 50 day simple moving average of $17.93 and a 200-day simple moving average of $18.47. The firm has a market capitalization of $2.86 billion, a P/E ratio of 72.42 and a beta of 1.10. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.22.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.04. The firm had revenue of $1.34 billion for 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 business's quarterly revenue was up 31.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.07 EPS. On average, equities research analysts forecast that Alignment Healthcare, Inc. will post 0.17 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO John E. Kao sold 298,000 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $13.88, for a total value of $4,136,240.00. Following the completion of the sale, the chief executive officer directly owned 790,766 shares of the company's stock, valued at $10,975,832.08. This represents a 27.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Dawn Christine Maroney sold 30,000 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $19.55, for a total value of $586,500.00. Following the completion of the sale, the president owned 947,313 shares of the company's stock, valued at $18,519,969.15. The trade was a 3.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,009,951 shares of company stock worth $18,597,287. Company insiders own 5.20% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ALHC. Wellington Management Group LLP boosted its position in shares of Alignment Healthcare by 9.8% during the second quarter. Wellington Management Group LLP now owns 18,780,363 shares of the company's stock worth $447,160,000 after acquiring an additional 1,681,427 shares during the last quarter. Vanguard Group Inc. increased its position in Alignment Healthcare by 10.9% during the fourth quarter. Vanguard Group Inc. now owns 15,492,802 shares of the company's stock valued at $305,983,000 after acquiring an additional 1,524,218 shares during the last quarter. T. Rowe Price Investment Management Inc. grew its holdings in Alignment Healthcare by 0.6% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 12,643,784 shares of the company's stock valued at $249,715,000 after purchasing an additional 79,268 shares during the last quarter. William Blair Investment Management LLC purchased a new stake in shares of Alignment Healthcare in the second quarter worth approximately $184,799,000. Finally, Invesco Ltd. increased its stake in Alignment Healthcare by 38.9% in the fourth quarter. Invesco Ltd. now owns 6,202,592 shares of the company's stock worth $122,501,000 after purchasing an additional 1,735,962 shares during the period. 86.19% of the stock is currently owned by institutional investors.

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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