Key Points
- CEO John Kao sold 27,400 shares of Alignment Healthcare for approximately $356,200 under a pre-arranged Rule 10b5-1 trading plan, reducing his direct stake by 4.43% to 590,766 shares.
- Alignment Healthcare reported quarterly EPS of $0.17, exceeding the $0.13 analyst consensus, while revenue rose 31.6% year over year to $1.34 billion.
- Despite the stock’s sharp decline, analysts maintain a consensus “Moderate Buy” rating with a $23.60 price target; however, concerns remain over Medicare Advantage reforms and uncertainty surrounding star ratings.
Alignment Healthcare, Inc. (NASDAQ:ALHC - Get Free Report) CEO John Kao sold 27,400 shares of Alignment Healthcare stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $13.00, for a total value of $356,200.00. Following the sale, the chief executive officer directly owned 590,766 shares of the company's stock, valued at approximately $7,679,958. This represents a 4.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Alignment Healthcare Stock Down 16.0%
Shares of ALHC stock opened at $8.71 on Thursday. Alignment Healthcare, Inc. has a fifty-two week low of $8.52 and a fifty-two week high of $25.12. The firm has a market capitalization of $1.81 billion, a PE ratio of 45.84 and a beta of 1.11. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.70 and a current ratio of 1.70. The stock's 50-day simple moving average is $15.44 and its 200-day simple moving average is $17.82.
Alignment Healthcare (NASDAQ:ALHC - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $0.17 EPS for the quarter, beating analysts' consensus estimates 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 analyst estimates of $1.31 billion. During the same quarter in the prior year, the firm earned $0.07 earnings per share. Alignment Healthcare's revenue for the quarter was up 31.6% on a year-over-year basis. Equities analysts expect that Alignment Healthcare, Inc. will post 0.17 earnings per share for the current year.
Analyst Upgrades and Downgrades
ALHC has been the topic of several recent research reports. Wall Street Zen lowered shares of Alignment Healthcare from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Raymond James Financial cut Alignment Healthcare from a "strong-buy" rating to an "outperform" rating and decreased their price objective for the company from $22.00 to $19.00 in a report on Monday, August 3rd. TD Cowen reaffirmed a "buy" rating on shares of Alignment Healthcare in a report on Wednesday. JPMorgan Chase & Co. decreased their price target on Alignment Healthcare from $26.00 to $22.00 and set an "overweight" rating for the company in a report on Tuesday, August 4th. Finally, KeyCorp restated an "overweight" rating on shares of Alignment Healthcare in a research report on Wednesday, June 10th. Seven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Alignment Healthcare has a consensus rating of "Moderate Buy" and a consensus price target of $23.60.
Get Our Latest Report on Alignment Healthcare
Key Headlines Impacting Alignment Healthcare
Here are the key news stories impacting Alignment Healthcare this week:
- Positive Sentiment: Unusual options activity showed investors purchasing 19,456 call options—roughly 996% above typical volume—suggesting some traders are positioning for a rebound, although this is speculative and does not confirm improving fundamentals.
- Positive Sentiment: Brokerages continue to give ALHC an overall “Moderate Buy” rating, indicating that some analysts view the sharp decline as potentially excessive. Alignment Healthcare Given Moderate Buy Recommendation
- Neutral Sentiment: CEO John Kao sold 27,400 shares for approximately $356,200 under a pre-arranged Rule 10b5-1 trading plan. The planned nature of the sale reduces its significance as a bearish signal, though his direct ownership declined by 4.43%. SEC Insider Sale Filing
- Negative Sentiment: Investors reacted sharply to comments at the Baird conference, including management’s apparent reluctance to discuss star ratings. Because star ratings can affect Medicare Advantage payments and member enrollment, the lack of visibility increased concerns about Alignment’s outlook. Alignment Falls After Baird Investor Conference
- Negative Sentiment: Coverage highlighted potential Medicare Advantage reform and uncertainty over how new rule changes could affect Alignment’s economics, adding to pressure on the shares. Medicare Advantage Rule Changes
- Negative Sentiment: Several law firms announced or updated investigations into possible securities-law violations following the stock’s steep conference-related decline. These announcements do not establish wrongdoing, but they add reputational and potential litigation risk. Hagens Berman Investigation Update
Institutional Inflows and Outflows
A number of large investors have recently modified their holdings of the company. WINTON GROUP Ltd purchased a new stake in shares of Alignment Healthcare during the 2nd quarter worth about $1,164,000. Arizona State Retirement System increased its stake in shares of 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 purchasing an additional 7,318 shares in the last quarter. Nykredit A S acquired a new position in Alignment Healthcare in the 2nd quarter worth about $36,000. Corient Private Wealth LP raised its holdings in Alignment Healthcare by 128.2% in the 2nd quarter. Corient Private Wealth LP now owns 136,505 shares of the company's stock worth $3,250,000 after purchasing an additional 76,677 shares during the period. Finally, HighTower Advisors LLC purchased a new position in Alignment Healthcare during the second quarter worth approximately $755,000. Institutional investors and hedge funds own 86.19% of the company's stock.
About Alignment Healthcare
(
Get Free Report)
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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