Alight (NYSE:ALIT) Trading Down 9.1% on Disappointing Earnings

Alight, Inc. (NYSE:ALIT) shares fell 9.1% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $2.50 and last traded at $2.4550. 13,237,904 shares traded hands during mid-day trading, an increase of 65% from the average session volume of 8,035,224 shares. The stock had previously closed at $2.70.

The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.13 by ($0.01). The company had revenue of $533.00 million for the quarter, compared to analyst estimates of $539.43 million. Alight had a positive return on equity of 6.94% and a negative net margin of 94.23%.The business’s quarterly revenue was down 4.0% on a year-over-year basis. During the same quarter last year, the business posted $0.09 earnings per share. Alight has set its FY 2025 guidance at 0.540-0.580 EPS.

Alight Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Monday, December 1st will be given a $0.04 dividend. The ex-dividend date of this dividend is Monday, December 1st. This represents a $0.16 annualized dividend and a dividend yield of 6.8%. Alight’s dividend payout ratio is presently -3.91%.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on ALIT shares. Needham & Company LLC cut their target price on Alight from $8.00 to $6.00 and set a “buy” rating on the stock in a report on Wednesday, August 6th. Wedbush cut their target price on Alight from $7.00 to $5.00 and set an “outperform” rating on the stock in a report on Thursday. UBS Group cut their target price on Alight from $6.50 to $4.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Alight in a report on Wednesday, October 8th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $8.00.

Hedge Funds Weigh In On Alight

Several hedge funds have recently made changes to their positions in ALIT. Strs Ohio purchased a new stake in Alight during the 1st quarter valued at $25,000. EverSource Wealth Advisors LLC lifted its holdings in Alight by 152.1% in the second quarter. EverSource Wealth Advisors LLC now owns 5,201 shares of the company’s stock valued at $29,000 after acquiring an additional 3,138 shares during the period. CWM LLC boosted its position in Alight by 364.8% in the first quarter. CWM LLC now owns 5,104 shares of the company’s stock worth $30,000 after purchasing an additional 4,006 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its stake in shares of Alight by 82.8% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 5,184 shares of the company’s stock valued at $31,000 after purchasing an additional 2,348 shares during the period. Finally, Evergreen Capital Management LLC bought a new stake in shares of Alight during the 3rd quarter valued at about $35,000. 96.74% of the stock is owned by hedge funds and other institutional investors.

Alight Trading Down 1.5%

The stock has a fifty day moving average of $3.22 and a 200 day moving average of $4.49. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.16 and a current ratio of 1.16. The company has a market capitalization of $1.27 billion, a P/E ratio of -0.58 and a beta of 1.02.

About Alight

Alight, Inc provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software.