Alignment Healthcare (NASDAQ:ALHC) Shares Down 6.9% – Here’s Why

Alignment Healthcare, Inc. (NASDAQ:ALHC)’s share price was down 6.9% on Thursday. The company traded as low as $7.66 and last traded at $7.5960. 1,633,482 shares were traded during mid-day trading, a decline of 69% from the average daily volume of 5,276,623 shares. The stock had previously closed at $8.16.

Analyst Ratings Changes

Several brokerages recently weighed in on ALHC. TD Cowen restated a “buy” rating on shares of Alignment Healthcare in a research note on Wednesday, September 16th. KeyCorp reissued an “overweight” rating on shares of Alignment Healthcare in a report on Wednesday, June 10th. Zacks Research lowered Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. UBS Group restated a “neutral” rating on shares of Alignment Healthcare in a research note on Wednesday, July 8th. Finally, Weiss Ratings upgraded shares of Alignment Healthcare from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, September 25th. Seven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $23.60.

Alignment Healthcare Trading Up 2.6%

The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.22. The firm has a market cap of $1.65 billion, a price-to-earnings ratio of 41.79 and a beta of 1.14. The company has a fifty day moving average price of $12.44 and a 200-day moving average price of $16.96.

Alignment Healthcare (NASDAQ:ALHC) last posted its earnings results on Thursday, July 30th. The company reported $0.17 EPS for the quarter, topping the consensus estimate 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 period last year, the company earned $0.07 earnings per share. Alignment Healthcare’s revenue for the quarter was up 31.6% compared to the same quarter last year. As a group, research analysts expect that Alignment Healthcare, Inc. will post 0.17 EPS for the current year.

Insider Transactions at Alignment Healthcare

In other news, EVP Joseph Konowiecki sold 23,511 shares of Alignment Healthcare stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $8.61, for a total transaction of $202,429.71. Following the completion of the transaction, the executive vice president directly owned 1,080,305 shares of the company’s stock, valued at $9,301,426.05. The trade was a 2.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Dawn Maroney sold 122,707 shares of the business’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $12.68, for a total transaction of $1,555,924.76. Following the completion of the transaction, the president owned 794,606 shares of the company’s stock, 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. Insiders have sold 1,327,488 shares of company stock valued at $19,291,194 in the last 90 days. 5.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. William Blair Investment Management LLC purchased a new stake in Alignment Healthcare in the 2nd quarter worth $184,799,000. Danica Pension Livsforsikringsaktieselskab acquired a new position in Alignment Healthcare during the second quarter worth $87,794,000. Bank of New York Mellon Corp purchased a new position in Alignment Healthcare during the second quarter valued at $87,077,000. Capital World Investors purchased a new position in Alignment Healthcare during the fourth quarter valued at $44,203,000. Finally, Bank of America Corp DE grew its position in shares of Alignment Healthcare by 156.5% in 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 purchasing an additional 1,961,778 shares during the period. Institutional investors and hedge funds own 86.19% of the company’s stock.

Alignment Healthcare Company Profile

Alignment Healthcare, Inc is a technology-enabled Medicare Advantage company focused on providing health coverage and care services for older adults. The company offers Medicare Advantage plans that combine medical benefits with care coordination, wellness support, and other services designed to help members manage their health.

Alignment operates through an integrated healthcare model that uses its proprietary technology platform to support physicians, care teams, and members. Its services include personalized care management, clinical coordination, virtual and in-home support, and member assistance through its concierge-style approach.