Alignment Healthcare (NASDAQ:ALHC) Stock Price Up 4% - Should You Buy?

Key Points

• Alignment Healthcare shares rose 4% to about $8.71, though trading volume was 78% below the average session level.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and a $23.00 average price target, despite several recent downgrades.
• The company exceeded quarterly earnings and revenue estimates, reporting $0.17 EPS and $1.34 billion in revenue, up 31.6% year over year; however, executives sold shares largely to cover tax obligations tied to equity awards.

Shares of Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) traded up 4% on Wednesday. The stock traded as high as $8.70 and last traded at $8.7050. Approximately 1,171,504 shares traded hands during mid-day trading, a decline of 78% from the average session volume of 5,429,924 shares. The stock had previously closed at $8.37.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Wall Street Zen downgraded shares of Alignment Healthcare from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings raised shares of Alignment Healthcare from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, September 25th. TD Cowen reiterated a "buy" rating on shares of Alignment Healthcare in a research note on Wednesday, September 16th. Raymond James Financial lowered shares of Alignment Healthcare from a "strong-buy" rating to an "outperform" rating and cut their price objective for the company from $22.00 to $19.00 in a report on Monday, August 3rd. Finally, Zacks Research downgraded shares of Alignment Healthcare from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Seven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Alignment Healthcare presently has a consensus rating of "Moderate Buy" and a consensus target price of $23.00.

Alignment Healthcare Trading Up 3.5%

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 market cap of $1.80 billion, a price-to-earnings ratio of 45.56 and a beta of 1.14. The company's fifty day moving average price is $12.03 and its 200-day moving average price is $16.82.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.17 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to the consensus estimate of $1.31 billion. During the same period in the prior year, the firm earned $0.07 EPS. The firm's revenue was up 31.6% on a year-over-year basis. On average, research analysts expect that Alignment Healthcare, Inc. will post 0.17 EPS for the current fiscal year.

Insider Buying and Selling at Alignment Healthcare

In other news, CEO John Kao sold 385,270 shares of the firm's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $12.68, for a total transaction of $4,885,223.60. Following the sale, the chief executive officer directly owned 1,223,473 shares in the company, valued at $15,513,637.64. This trade represents a 23.95% decrease in their position. The transaction was disclosed in a legal 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Dawn Maroney sold 122,707 shares of Alignment Healthcare stock in a transaction dated 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 transaction, the president 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 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. Over the last quarter, insiders sold 1,327,488 shares of company stock valued at $19,291,194. Corporate insiders own 5.20% of the company's stock.

Institutional Trading of Alignment Healthcare

Several large investors have recently made changes to their positions in ALHC. WINTON GROUP Ltd purchased a new position in Alignment Healthcare during the second quarter worth approximately $1,164,000. Arizona State Retirement System grew its holdings in Alignment Healthcare by 15.8% in the 2nd quarter. Arizona State Retirement System now owns 53,553 shares of the company's stock valued at $1,275,000 after buying an additional 7,318 shares in the last quarter. Nykredit A S acquired a new stake in shares of Alignment Healthcare in the 2nd quarter worth $36,000. Corient Private Wealth LP raised its holdings in shares of Alignment Healthcare by 128.2% during the 2nd quarter. Corient Private Wealth LP now owns 136,505 shares of the company's stock worth $3,250,000 after acquiring an additional 76,677 shares during the period. Finally, HighTower Advisors LLC purchased a new position in shares of Alignment Healthcare during the 2nd quarter worth $755,000. 86.19% of the stock is currently owned by hedge funds and other institutional investors.

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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