Alignment Healthcare (NASDAQ:ALHC) Shares Down 8.7% – Here’s Why

Alignment Healthcare, Inc. (NASDAQ:ALHC)’s stock price dropped 8.7% during mid-day trading on Wednesday . The company traded as low as $22.48 and last traded at $21.9520. Approximately 2,605,623 shares traded hands during mid-day trading, a decline of 40% from the average daily volume of 4,334,570 shares. The stock had previously closed at $24.05.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on ALHC. Barclays cut their price objective on Alignment Healthcare from $19.00 to $16.00 and set an “equal weight” rating on the stock in a report on Tuesday, May 26th. Wolfe Research assumed coverage on shares of Alignment Healthcare in a report on Friday, April 17th. They set an “outperform” rating and a $24.00 target price on the stock. Weiss Ratings raised shares of Alignment Healthcare from a “sell (d-)” rating to a “hold (c-)” rating in a research note on Thursday, May 7th. Wall Street Zen upgraded shares of Alignment Healthcare from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Finally, Raymond James Financial set a $22.00 price objective on shares of Alignment Healthcare in a research report on Thursday, May 7th. Six research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $24.30.

Alignment Healthcare Stock Down 13.1%

The company has a debt-to-equity ratio of 1.56, a current ratio of 1.58 and a quick ratio of 1.58. The company has a market capitalization of $4.32 billion, a price-to-earnings ratio of 234.56, a PEG ratio of 3.32 and a beta of 1.05. The firm has a 50-day moving average price of $19.15 and a two-hundred day moving average price of $19.79.

Alignment Healthcare (NASDAQ:ALHC) last announced its earnings results on Thursday, April 30th. The company reported $0.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.01 by $0.04. Alignment Healthcare had a return on equity of 11.50% and a net margin of 0.47%.The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same quarter last year, the firm earned ($0.05) EPS. Alignment Healthcare’s revenue for the quarter was up 33.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Alignment Healthcare, Inc. will post 0.2 earnings per share for the current fiscal year.

Insider Buying and Selling at Alignment Healthcare

In related news, EVP Joseph S. Konowiecki sold 25,000 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $24.00, for a total transaction of $600,000.00. Following the sale, the executive vice president owned 1,103,816 shares in the company, valued at approximately $26,491,584. This represents a 2.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John E. Kao sold 298,000 shares of the stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $20.36, for a total value of $6,067,280.00. Following the transaction, the chief executive officer directly owned 1,386,766 shares of the company’s stock, valued at $28,234,555.76. This trade represents a 17.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,069,951 shares of company stock worth $20,846,518. Company insiders own 5.20% of the company’s stock.

Institutional Investors Weigh In On Alignment Healthcare

Large investors have recently made changes to their positions in the stock. Allworth Financial LP increased its holdings in Alignment Healthcare by 8.9% during the fourth quarter. Allworth Financial LP now owns 6,917 shares of the company’s stock worth $137,000 after buying an additional 566 shares during the last quarter. State of Alaska Department of Revenue grew its position in shares of Alignment Healthcare by 6.0% in the 4th quarter. State of Alaska Department of Revenue now owns 11,296 shares of the company’s stock valued at $223,000 after acquiring an additional 636 shares during the period. Integrated Wealth Concepts LLC grew its position in shares of Alignment Healthcare by 6.3% in the 3rd quarter. Integrated Wealth Concepts LLC now owns 11,230 shares of the company’s stock valued at $196,000 after acquiring an additional 665 shares during the period. Parallel Advisors LLC raised its holdings in shares of Alignment Healthcare by 87.7% in the 4th quarter. Parallel Advisors LLC now owns 1,654 shares of the company’s stock valued at $33,000 after purchasing an additional 773 shares during the period. Finally, Tidal Investments LLC lifted its stake in Alignment Healthcare by 4.9% in the 2nd quarter. Tidal Investments LLC now owns 18,094 shares of the company’s stock valued at $253,000 after purchasing an additional 852 shares during the last quarter. Institutional investors and hedge funds own 86.19% of the company’s stock.

About Alignment Healthcare

Alignment Healthcare, Inc (NASDAQ: ALHC) is a health care company specializing in value-based care for Medicare Advantage beneficiaries. The company leverages an integrated care model that combines in-home clinical services, telehealth capabilities and digital health tools to manage chronic conditions, improve outcomes and enhance patient experience.

At the core of Alignment Healthcare’s approach is a proprietary technology platform that aggregates real-time clinical and claims data to support preventive care, risk stratification and personalized care plans.