Alignment Healthcare, Inc. (NASDAQ:ALHC) Receives $23.60 Average Target Price from Brokerages

Shares of Alignment Healthcare, Inc. (NASDAQ:ALHC) have been given a consensus rating of “Moderate Buy” by the eleven brokerages that are currently covering the stock, Marketbeat.com reports. Four analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12-month target price among brokers that have covered the stock in the last year is $23.60.

Several research firms recently issued reports on ALHC. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Alignment Healthcare in a report on Tuesday, August 4th. Wall Street Zen downgraded shares of Alignment Healthcare from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Barclays cut their target price on shares of Alignment Healthcare from $19.00 to $16.00 and set an “equal weight” rating on the stock in a research note on Tuesday, May 26th. Zacks Research cut shares of Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Finally, KeyCorp reissued an “overweight” rating on shares of Alignment Healthcare in a report on Wednesday, June 10th.

Alignment Healthcare News Roundup

Here are the key news stories impacting Alignment Healthcare this week:

• Positive Sentiment: Some analysts remain constructive after the selloff. Coverage continues to describe ALHC as a potential bargain, and the stock retains a consensus “Moderate Buy” rating, although price targets may not yet reflect the latest concerns. Analysts Are Bullish on Alignment Healthcare
• Neutral Sentiment: EVP Joseph Konowiecki sold 23,511 shares for approximately $202,430 at an average price of $8.61. The filing states that the sale covered tax-withholding obligations related to vested equity awards, making it less indicative of management’s investment outlook. SEC Filing for Joseph Konowiecki
• Neutral Sentiment: CEO John Kao previously sold 27,400 shares for $356,200 under a pre-arranged Rule 10b5-1 plan. While the transaction reduced his direct holdings by 4.43%, its scheduled nature limits the bearish signal. SEC Filing for John Kao
• Negative Sentiment: Investors reacted negatively to management’s disclosures at the Baird conference, particularly uncertainty surrounding Medicare Advantage star ratings. Those ratings can influence reimbursement, enrollment and profitability, so limited visibility increased concerns about Alignment’s earnings outlook. Hagens Berman Conference Investigation Update
• Negative Sentiment: Reports also highlighted potential Medicare Advantage reforms, creating uncertainty about how regulatory changes could affect Alignment’s economics and future growth. Alignment Healthcare Faces Medicare Advantage Reform
• Negative Sentiment: Multiple law firms announced securities-fraud investigations following the steep conference-related selloff. The investigations do not establish wrongdoing, but they add potential litigation, reputational and headline risk. Securities Fraud Investigation Into Alignment Healthcare

Insider Transactions at Alignment Healthcare

In other news, EVP Joseph Konowiecki sold 25,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was 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 approximately $26,491,584. The trade was a 2.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Dawn Maroney sold 122,707 shares of the company’s 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 sale, the president directly owned 794,606 shares in the company, valued at approximately $10,075,604.08. This represents a 13.38% decrease in their ownership of the stock. 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. In the last quarter, insiders sold 1,377,488 shares of company stock worth $20,466,194. 5.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. William Blair Investment Management LLC bought a new position in Alignment Healthcare during the 2nd quarter worth $184,799,000. Danica Pension Livsforsikringsaktieselskab bought a new stake in Alignment Healthcare in the second quarter valued at $87,794,000. Bank of New York Mellon Corp bought a new stake in Alignment Healthcare in the second quarter valued at $87,077,000. Capital World Investors acquired a new position in shares of Alignment Healthcare during the fourth quarter valued at $44,203,000. Finally, Bank of America Corp DE boosted its holdings in shares of Alignment Healthcare by 156.5% during the first quarter. Bank of America Corp DE now owns 3,215,667 shares of the company’s stock valued at $56,660,000 after acquiring an additional 1,961,778 shares during the period. 86.19% of the stock is currently owned by institutional investors.

Alignment Healthcare Trading Down 4.0%

Shares of ALHC opened at $8.35 on Wednesday. Alignment Healthcare has a one year low of $8.27 and a one year high of $25.12. The stock has a 50-day moving average price of $14.96 and a 200 day moving average price of $17.68. 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 company has a market capitalization of $1.73 billion, a P/E ratio of 43.95 and a beta of 1.11.

Alignment Healthcare (NASDAQ:ALHC) last announced its earnings results on Thursday, July 30th. The company reported $0.17 earnings per share (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 company had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same period in the prior year, the company posted $0.07 EPS. Alignment Healthcare’s quarterly revenue was up 31.6% on a year-over-year basis. Sell-side analysts forecast that Alignment Healthcare will post 0.17 EPS for the current fiscal year.

Alignment Healthcare Company Profile

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.