Insider Selling: Alignment Healthcare (NASDAQ:ALHC) CEO Sells 27,400 Shares of Stock

Alignment Healthcare, Inc. (NASDAQ:ALHC) CEO John Kao sold 27,400 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $13.00, for a total transaction of $356,200.00. Following the transaction, the chief executive officer owned 590,766 shares of the company’s stock, valued at approximately $7,679,958. This represents a 4.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Alignment Healthcare Stock Down 16.0%

Shares of NASDAQ:ALHC traded down $1.66 during midday trading on Wednesday, reaching $8.71. The company had a trading volume of 24,295,330 shares, compared to its average volume of 4,811,371. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.22. The business’s 50 day moving average price is $15.66 and its 200 day moving average price is $17.90. The stock has a market cap of $1.81 billion, a PE ratio of 45.84 and a beta of 1.11. Alignment Healthcare, Inc. has a 1-year low of $8.52 and a 1-year high of $25.12.

Alignment Healthcare (NASDAQ:ALHC) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.13 by $0.04. The firm had revenue of $1.34 billion during the quarter, compared to analysts’ expectations of $1.31 billion. Alignment Healthcare had a return on equity of 20.02% and a net margin of 0.89%.The business’s quarterly revenue was up 31.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.07 earnings per share. Research analysts forecast that Alignment Healthcare, Inc. will post 0.17 EPS for the current fiscal year.

Key Stories Impacting Alignment Healthcare

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

• Positive Sentiment: Brokerages maintain an overall “Moderate Buy” recommendation, indicating that analysts generally view the recent decline as potentially creating an attractive entry point if Alignment’s operating outlook remains intact. Alignment Healthcare Given Average Recommendation of Moderate Buy
• Positive Sentiment: Unusually heavy call-option activity—19,456 calls purchased versus typical volume of about 1,775—shows that some traders are positioning for a potential rebound, although options activity is speculative and does not change the company’s fundamentals.
• Neutral Sentiment: Alignment Healthcare’s exposure to new Medicare Advantage rule changes is drawing investor attention. The effect on revenue, benefits, reimbursement, and costs will depend on the final rules and the company’s ability to adapt. How Could Alignment Healthcare Handle New Medicare Advantage Rule Changes?
• Negative Sentiment: Investors reacted negatively to management’s Baird conference comments and apparent reluctance to discuss star ratings. The lack of clarity was interpreted as a possible warning regarding future Medicare Advantage quality ratings, which can affect member enrollment, reimbursement, and profitability. Alignment falls after comments at Baird investor conference
• Negative Sentiment: Several law firms, including Hagens Berman, Frank R. Cruz, and Rosen Law Firm, announced or continued investigations into potential securities-law violations following the selloff. These announcements increase headline and litigation risk, although they contain allegations rather than established findings. Hagens Berman updates Alignment Healthcare investigation
• Negative Sentiment: A reported insider sale of approximately $7.1 million may add to investor concern about management confidence, though the filing alone does not establish the reason for the transaction. Alignment Healthcare insider sold shares

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ALHC. WINTON GROUP Ltd acquired a new position in shares of Alignment Healthcare in the second quarter valued at approximately $1,164,000. Arizona State Retirement System lifted its holdings in Alignment Healthcare by 15.8% during the 2nd quarter. Arizona State Retirement System now owns 53,553 shares of the company’s stock worth $1,275,000 after purchasing an additional 7,318 shares during the last quarter. Nykredit A S bought a new stake in Alignment Healthcare in the 2nd quarter valued at $36,000. Corient Private Wealth LP boosted its stake in Alignment Healthcare by 128.2% in the 2nd quarter. Corient Private Wealth LP now owns 136,505 shares of the company’s stock valued at $3,250,000 after purchasing an additional 76,677 shares during the period. Finally, HighTower Advisors LLC acquired a new position in Alignment Healthcare in the 2nd quarter valued at $755,000. 86.19% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ALHC. Barclays decreased 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. KeyCorp reiterated an “overweight” rating on shares of Alignment Healthcare in a research note on Wednesday, June 10th. Weiss Ratings reissued a “hold (c-)” rating on shares of Alignment Healthcare in a research report on Tuesday, August 4th. JPMorgan Chase & Co. lowered their price objective on shares of Alignment Healthcare from $26.00 to $22.00 and set an “overweight” rating on the stock in a research note on Tuesday, August 4th. Finally, TD Cowen reaffirmed a “buy” rating on shares of Alignment Healthcare in a report on Wednesday. Seven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $23.60.

About Alignment Healthcare

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.