Alignment Healthcare (NASDAQ:ALHC) Sees Strong Trading Volume – Here’s What Happened

Alignment Healthcare, Inc. (NASDAQ:ALHC) shares saw unusually-strong trading volume on Thursday . 5,399,507 shares traded hands during trading, an increase of 12% from the previous session’s volume of 4,804,313 shares.The stock last traded at $9.4790 and had previously closed at $8.71.

Alignment Healthcare News Roundup

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

• Positive Sentiment: Some analysts still view the decline as excessive. Brokerages maintain an overall “Moderate Buy” rating, while coverage has identified Alignment Healthcare as a potentially attractive healthcare stock after its 57% slide. However, these opinions are based partly on valuation and may not offset concerns about future operating performance. Brokerage Recommendation
• Positive Sentiment: The company’s latest reported quarter was stronger than expected, with earnings of $0.17 per share versus a $0.13 consensus estimate and revenue up 31.6% year over year. That recent operating momentum could support a recovery if Medicare Advantage concerns stabilize.
• Neutral Sentiment: CEO John Kao sold 27,400 shares for approximately $356,200 under a pre-arranged Rule 10b5-1 trading plan. The planned nature of the transaction reduces its value as a bearish signal, although his direct ownership fell by 4.43%. SEC Insider Sale Filing
• Negative Sentiment: Investors reacted negatively to management’s comments at the Baird investor conference, particularly the apparent lack of clarity regarding Medicare Advantage star ratings. Those ratings can influence reimbursement, bonuses and enrollment, making the uncertainty a major concern for Alignment’s outlook. Baird Conference Coverage
• Negative Sentiment: Investors are also evaluating proposed Medicare Advantage reforms and how changes to payment rules could affect the company’s margins and growth. This regulatory uncertainty has contributed to the stock’s recent decline. Medicare Advantage Reform Coverage
• Negative Sentiment: Multiple law firms have announced or continued securities-fraud investigations following the conference-related selloff. The announcements do not establish wrongdoing, but they add potential legal, reputational and overhang risks for ALHC. Securities Fraud Investigation

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on ALHC. KeyCorp reaffirmed an “overweight” rating on shares of Alignment Healthcare in a research report on Wednesday, June 10th. UBS Group reaffirmed a “neutral” rating on shares of Alignment Healthcare in a research note on Wednesday, July 8th. Raymond James Financial cut shares of Alignment Healthcare from a “strong-buy” rating to an “outperform” rating and reduced their price objective for the company from $22.00 to $19.00 in a report on Monday, August 3rd. Wall Street Zen downgraded shares of Alignment Healthcare from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, Zacks Research lowered shares of Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Seven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $23.60.

Alignment Healthcare Stock Up 6.0%

The stock has a 50-day moving average of $15.44 and a 200 day moving average of $17.82. The company has a market capitalization of $1.92 billion, a PE ratio of 48.57 and a beta of 1.11. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 1.22.

Alignment Healthcare (NASDAQ:ALHC) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.04. The business had revenue of $1.34 billion for 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 revenue was up 31.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.07 earnings per share. Sell-side analysts anticipate that Alignment Healthcare, Inc. will post 0.17 EPS for the current year.

Insider Transactions at Alignment Healthcare

In related news, President Dawn Maroney sold 122,707 shares of the firm’s stock in a transaction dated 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 sale, the president owned 794,606 shares in the company, valued at approximately $10,075,604.08. This trade represents a 13.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO John E. Kao sold 27,400 shares of Alignment Healthcare 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 completion of the sale, the chief executive officer directly owned 590,766 shares in the company, valued at approximately $7,679,958. This represents a 4.43% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,353,977 shares of company stock worth $20,263,764 in the last ninety days. Company insiders own 5.20% of the company’s stock.

Institutional Investors Weigh In On Alignment Healthcare

Large investors have recently modified their holdings of the stock. Versant Capital Management Inc raised its holdings in shares of Alignment Healthcare by 463.3% in the 2nd quarter. Versant Capital Management Inc now owns 1,380 shares of the company’s stock worth $33,000 after purchasing an additional 1,135 shares during the period. Nykredit A S bought a new position in Alignment Healthcare during the second quarter valued at $36,000. Signature Equity Partners LLC purchased a new stake in Alignment Healthcare in the first quarter worth $46,000. Caitong International Asset Management Co. Ltd increased its position in Alignment Healthcare by 51,757.1% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,630 shares of the company’s stock worth $72,000 after buying an additional 3,623 shares during the last quarter. Finally, GAMMA Investing LLC raised its stake in shares of Alignment Healthcare by 46.6% in the second quarter. GAMMA Investing LLC now owns 3,368 shares of the company’s stock valued at $80,000 after buying an additional 1,070 shares during the period. Hedge funds and other institutional investors own 86.19% of the company’s stock.

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.