Alignment Healthcare (NASDAQ:ALHC) Announces Earnings Results, Beats Expectations By $0.04 EPS

Alignment Healthcare (NASDAQ:ALHC) released its quarterly earnings results on Thursday. The company reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.13 by $0.04, FiscalAI reports. Alignment Healthcare had a return on equity of 11.50% and a net margin of 0.47%.The firm had revenue of $1.34 billion during the quarter, compared to analysts’ expectations of $1.31 billion. During the same period last year, the firm posted $0.07 EPS. The business’s revenue was up 31.6% on a year-over-year basis.

Here are the key takeaways from Alignment Healthcare’s conference call:

• Strong second-quarter results: Membership rose 31% year over year to 294,100, revenue increased 32% to $1.3 billion, and adjusted EBITDA grew 48% to $68 million, with a 60-basis-point margin expansion.
• Alignment raised its 2026 membership and revenue outlook, increased the low end of its adjusted gross profit guidance by $10 million and adjusted EBITDA guidance by $7 million, and remains on track for its full-year targets.
• Management estimates approximately $880 million of embedded adjusted gross profit potential in its current membership base, as roughly half of members remain in their first or second year and are expected to become more profitable as clinical programs mature.
• The latest AVA AI stratification model can identify the 10% of members expected to account for nearly 70% of hospital admissions over the following 30 days, supporting more targeted intervention by Care Anywhere teams.
• Third-quarter profitability is expected to be seasonally weaker, with only about 30% of full-year adjusted EBITDA projected in the second half; higher-acuity new members, Part D trends, and additional clinical, AI, automation, hiring, and market-preparation investments are expected to pressure MBR and SG&A.

Alignment Healthcare Trading Up 1.7%

Shares of ALHC traded up $0.32 on Thursday, reaching $18.61. 4,016,545 shares of the company’s stock were exchanged, compared to its average volume of 4,371,387. The business has a 50 day moving average price of $19.69 and a two-hundred day moving average price of $19.81. Alignment Healthcare has a 12 month low of $12.91 and a 12 month high of $25.12. The stock has a market capitalization of $3.85 billion, a P/E ratio of 206.78, a price-to-earnings-growth ratio of 2.49 and a beta of 1.05. The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 1.56.

Insider Transactions at Alignment Healthcare

In other news, EVP Joseph S. Konowiecki sold 25,000 shares of the firm’s stock in a transaction 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 transaction, the executive vice president directly owned 1,103,816 shares in the company, valued at $26,491,584. This trade represents a 2.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John E. Kao sold 298,000 shares of Alignment Healthcare stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $20.36, for a total value of $6,067,280.00. Following the sale, the chief executive officer directly owned 1,386,766 shares of the company’s stock, valued at approximately $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. In the last quarter, insiders sold 1,039,951 shares of company stock valued at $19,976,967. 5.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Alignment Healthcare

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ALHC. Longaeva Partners L.P. bought a new position in shares of Alignment Healthcare during the third quarter worth $2,181,000. BNP Paribas Financial Markets increased its position in shares of Alignment Healthcare by 506.5% in the 2nd quarter. BNP Paribas Financial Markets now owns 133,194 shares of the company’s stock valued at $1,865,000 after buying an additional 111,232 shares in the last quarter. Russell Investments Group Ltd. raised its stake in Alignment Healthcare by 109.1% during the 4th quarter. Russell Investments Group Ltd. now owns 85,557 shares of the company’s stock worth $1,667,000 after buying an additional 44,635 shares during the period. Janus Henderson Group PLC lifted its holdings in Alignment Healthcare by 31.4% during the fourth quarter. Janus Henderson Group PLC now owns 79,155 shares of the company’s stock worth $1,564,000 after acquiring an additional 18,900 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in Alignment Healthcare by 31.3% during the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 46,841 shares of the company’s stock worth $817,000 after acquiring an additional 11,171 shares in the last quarter. Institutional investors own 86.19% of the company’s stock.

Alignment Healthcare News Roundup

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

• Positive Sentiment: Alignment reported second-quarter adjusted earnings of $0.17 per share, exceeding the $0.13 analyst consensus, while revenue reached $1.34 billion versus expectations of $1.31 billion. The company said results surpassed the high end of guidance across key metrics. Alignment Healthcare quarterly earnings report
• Positive Sentiment: Net income more than doubled year over year to $36.6 million as the insurer gained better control over care costs for older adults enrolled in its Medicare Advantage plans. Improving medical-cost trends are particularly important for margins and future profitability. Alignment Healthcare turns profit as costs improve
• Positive Sentiment: Management maintained third-quarter revenue guidance of approximately $1.3 billion and full-year 2026 revenue guidance of approximately $5.2 billion, broadly matching analyst estimates. This suggests the growth outlook remains intact after the earnings beat.
• Neutral Sentiment: Analysts continue to assess Alignment as a potential value opportunity relative to other medical-services stocks, but the company’s high valuation makes sustained earnings and margin improvement important for further upside. PACS or Alignment Healthcare value comparison
• Negative Sentiment: Several law firms, including Pomerantz, Lowey Dannenberg and Kaplan Fox, announced investigations into potential federal securities-law violations and claims related to alleged financial manipulation. The announcements appear to be investor solicitations, and no wrongdoing has been established, but they may weigh on sentiment and introduce legal and reputational risk.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on ALHC. Raymond James Financial set a $22.00 target price on Alignment Healthcare in a report on Thursday, May 7th. Wall Street Zen upgraded shares of Alignment Healthcare from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. KeyCorp reissued an “overweight” rating on shares of Alignment Healthcare in a report on Wednesday, June 10th. UBS Group restated a “neutral” rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. Finally, Barclays dropped their target price on shares of Alignment Healthcare from $19.00 to $16.00 and set an “equal weight” rating for the company in a research note on Tuesday, May 26th. Six investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $24.30.

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.