Alignment Healthcare (NASDAQ:ALHC) Shares Up 3.8% - What's Next?

Key Points

• Alignment Healthcare shares rose 3.8% to about $7.97 in midday trading, though volume was roughly 91% below the average daily level.
• Analysts maintain a “Moderate Buy” consensus, with seven Buy ratings and four Holds and an average price target of $23.60.
• The company exceeded quarterly expectations, reporting $0.17 EPS and $1.34 billion in revenue, while revenue grew 31.6% year over year; however, insiders sold about $19.9 million of stock over the past three months.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) shares shot up 3.8% during mid-day trading on Friday. The company traded as high as $7.85 and last traded at $7.9650. Approximately 473,235 shares traded hands during trading, a decline of 91% from the average daily volume of 5,195,394 shares. The stock had previously closed at $7.67.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Alignment Healthcare in a research report on Tuesday, August 4th. TD Cowen reissued a "buy" rating on shares of Alignment Healthcare in a research note on Wednesday, September 16th. KeyCorp restated an "overweight" rating on shares of Alignment Healthcare in a report on Wednesday, June 10th. Zacks Research lowered Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Finally, Wall Street Zen cut Alignment Healthcare from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Seven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Alignment Healthcare presently has a consensus rating of "Moderate Buy" and a consensus price target of $23.60.

Alignment Healthcare Stock Up 8.8%

The company has a market capitalization of $1.73 billion, a price-to-earnings ratio of 43.87 and a beta of 1.11. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.22. The company has a 50-day moving average of $13.95 and a 200-day moving average of $17.37.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.04. Alignment Healthcare had a return on equity of 20.02% and a net margin of 0.89%.The firm had revenue of $1.34 billion during the quarter, compared to analysts' expectations of $1.31 billion. During the same period last year, the business posted $0.07 earnings per share. The company's revenue for the quarter was up 31.6% compared to the same quarter last year. On average, equities analysts predict that Alignment Healthcare, Inc. will post 0.17 earnings per share for the current fiscal year.

Insider Transactions at Alignment Healthcare

In other news, EVP Joseph S. Konowiecki sold 25,000 shares of the 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 completion of the sale, the executive vice president directly owned 1,103,816 shares in the company, valued at $26,491,584. This represents a 2.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Dawn Maroney sold 122,707 shares of the stock in a transaction that occurred on Friday, September 11th. The shares were 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 directly owned 794,606 shares of the company's stock, valued at approximately $10,075,604.08. This represents a 13.38% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,352,488 shares of company stock valued at $19,891,194 in the last three months. 5.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Versant Capital Management Inc lifted its stake in Alignment Healthcare by 463.3% during the 2nd quarter. Versant Capital Management Inc now owns 1,380 shares of the company's stock worth $33,000 after acquiring an additional 1,135 shares in the last quarter. Nykredit A S purchased a new position in shares of Alignment Healthcare in the second quarter valued at approximately $36,000. Signature Equity Partners LLC acquired a new position in shares of Alignment Healthcare in the first quarter valued at approximately $46,000. Caitong International Asset Management Co. Ltd increased its stake in 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 worth $72,000 after buying an additional 3,623 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in 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 buying an additional 1,070 shares in the last quarter. 86.19% of the stock is currently owned by hedge funds and other institutional investors.

About Alignment Healthcare

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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