Traders Purchase High Volume of Call Options on Alignment Healthcare (NASDAQ:ALHC)

Key Points

• Alignment Healthcare experienced a significant surge in call options trading, with 5,167 options purchased, representing a 378% increase from the average volume.
• The company's stock rose by 1.5% during mid-day trading, reaching $11.81, with a market cap of $2.34 billion and a P/E ratio of -24.63.
• Analysts have been bullish on the stock, with several raising their price targets; the average price target now stands at $17.17 and includes ratings from "hold" to "strong buy."
• Insider trading activity showed CEO John E. Kao sold 180,000 shares recently, decreasing their position by 10.39%, while institutional investors own 86.19% of the stock.

Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) saw unusually large options trading activity on Friday. Traders acquired 5,167 call options on the stock. This represents an increase of 378% compared to the average volume of 1,081 call options.

Alignment Healthcare Stock Up 1.5%

Shares of NASDAQ ALHC traded up $0.17 during mid-day trading on Friday, reaching $11.81. 1,044,076 shares of the company's stock traded hands, compared to its average volume of 2,867,060. The stock has a market cap of $2.34 billion, a P/E ratio of -24.63 and a beta of 1.16. The business has a 50-day simple moving average of $14.22 and a 200 day simple moving average of $15.32. Alignment Healthcare has a 1-year low of $7.92 and a 1-year high of $21.06. The company has a debt-to-equity ratio of 2.95, a current ratio of 1.69 and a quick ratio of 1.69.

Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last released its earnings results on Thursday, May 1st. The company reported ($0.05) earnings per share for the quarter, beating analysts' consensus estimates of ($0.12) by $0.07. The firm had revenue of $926.93 million for the quarter, compared to analysts' expectations of $889.83 million. Alignment Healthcare had a negative net margin of 3.02% and a negative return on equity of 80.49%. The company's quarterly revenue was up 47.5% on a year-over-year basis. During the same period in the previous year, the company earned ($0.25) earnings per share. On average, analysts expect that Alignment Healthcare will post -0.69 EPS for the current fiscal year.

Analysts Set New Price Targets

ALHC has been the topic of several analyst reports. Stephens upgraded shares of Alignment Healthcare to a "strong-buy" rating in a research report on Monday, June 2nd. Robert W. Baird increased their price objective on shares of Alignment Healthcare from $17.00 to $22.00 and gave the company an "outperform" rating in a research note on Tuesday, April 15th. UBS Group increased their price objective on shares of Alignment Healthcare from $16.00 to $17.00 and gave the company a "neutral" rating in a research note on Friday, May 2nd. Finally, Stifel Nicolaus raised their price target on shares of Alignment Healthcare from $18.00 to $23.00 and gave the company a "buy" rating in a research note on Tuesday, April 8th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, six have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, Alignment Healthcare has an average rating of "Moderate Buy" and an average price target of $17.17.

Insider Buying and Selling

In related news, CEO John E. Kao sold 180,000 shares of the company's stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $13.41, for a total value of $2,413,800.00. Following the transaction, the chief executive officer owned 1,553,100 shares in the company, valued at approximately $20,827,071. This represents a 10.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Andreas P. Wagner sold 19,399 shares of the company's stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $15.26, for a total transaction of $296,028.74. Following the completion of the transaction, the insider owned 204,075 shares in the company, valued at approximately $3,114,184.50. This trade represents a 8.68% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 17,685,262 shares of company stock valued at $269,685,496. 7.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Blue Trust Inc. boosted its holdings in Alignment Healthcare by 48.4% in the 2nd quarter. Blue Trust Inc. now owns 36,912 shares of the company's stock worth $517,000 after buying an additional 12,045 shares during the period. KLP Kapitalforvaltning AS lifted its stake in Alignment Healthcare by 39.5% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 24,000 shares of the company's stock worth $336,000 after purchasing an additional 6,800 shares in the last quarter. LGT Fund Management Co Ltd. bought a new position in shares of Alignment Healthcare during the 2nd quarter valued at $2,121,000. 111 Capital bought a new position in shares of Alignment Healthcare during the 2nd quarter valued at $325,000. Finally, Hennessy Advisors Inc. bought a new position in shares of Alignment Healthcare during the 2nd quarter valued at $7,853,000. 86.19% of the stock is owned by institutional investors.

Alignment Healthcare Company Profile

Alignment Healthcare, Inc, a tech-enabled Medicare advantage company, operates consumer-centric health care platform for seniors in the United States. It provides customized health care designed to meet the needs of a diverse array of seniors through its Medicare advantage plans. The company was founded in 2013 and is based in Orange, California.

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