Alignment Healthcare (NASDAQ:ALHC) CEO John Kao Sells 27,400 Shares of Stock

Alignment Healthcare, Inc. (NASDAQ:ALHC) CEO John Kao sold 27,400 shares of the business’s stock in a transaction on Monday, September 14th. The shares were 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 in the company, valued at $7,679,958. This trade represents a 4.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Alignment Healthcare Trading Down 16.0%

Shares of ALHC opened at $8.71 on Thursday. The company’s fifty day simple moving average is $15.44 and its 200-day simple moving average is $17.82. The company has a market cap of $1.81 billion, a P/E ratio of 45.84 and a beta of 1.11. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 1.22. Alignment Healthcare, Inc. has a twelve month low of $8.52 and a twelve month high of $25.12.

Alignment Healthcare (NASDAQ:ALHC) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.17 EPS for the quarter, topping analysts’ consensus estimates 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 net margin of 0.89% and a return on equity of 20.02%. The firm’s revenue for the quarter was up 31.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.07 EPS. As a group, analysts expect that Alignment Healthcare, Inc. will post 0.17 EPS for the current year.

Trending Headlines about Alignment Healthcare

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

• Positive Sentiment: Unusual options activity showed investors purchasing 19,456 call options—roughly 996% above typical volume—suggesting some traders are positioning for a rebound, although this is speculative and does not confirm improving fundamentals.
• Positive Sentiment: Brokerages continue to give ALHC an overall “Moderate Buy” rating, indicating that some analysts view the sharp decline as potentially excessive. Alignment Healthcare Given Moderate Buy Recommendation
• 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 sale reduces its significance as a bearish signal, though his direct ownership declined by 4.43%. SEC Insider Sale Filing
• Negative Sentiment: Investors reacted sharply to comments at the Baird conference, including management’s apparent reluctance to discuss star ratings. Because star ratings can affect Medicare Advantage payments and member enrollment, the lack of visibility increased concerns about Alignment’s outlook. Alignment Falls After Baird Investor Conference
• Negative Sentiment: Coverage highlighted potential Medicare Advantage reform and uncertainty over how new rule changes could affect Alignment’s economics, adding to pressure on the shares. Medicare Advantage Rule Changes
• Negative Sentiment: Several law firms announced or updated investigations into possible securities-law violations following the stock’s steep conference-related decline. These announcements do not establish wrongdoing, but they add reputational and potential litigation risk. Hagens Berman Investigation Update

Hedge Funds Weigh In On Alignment Healthcare

A number of institutional investors have recently modified their holdings of ALHC. Allworth Financial LP increased its position in Alignment Healthcare by 8.9% during the 4th quarter. Allworth Financial LP now owns 6,917 shares of the company’s stock valued at $137,000 after buying an additional 566 shares in the last quarter. PNC Financial Services Group Inc. increased its holdings in shares of Alignment Healthcare by 9.2% during the first quarter. PNC Financial Services Group Inc. now owns 11,445 shares of the company’s stock valued at $202,000 after acquiring an additional 962 shares in the last quarter. GAMMA Investing LLC raised its position in shares of Alignment Healthcare by 46.6% in the 2nd quarter. GAMMA Investing LLC now owns 3,368 shares of the company’s stock valued at $80,000 after purchasing an additional 1,070 shares during the last quarter. Versant Capital Management Inc boosted its stake in 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 in the last quarter. Finally, Nykredit A S purchased a new stake in Alignment Healthcare during the 2nd quarter worth approximately $36,000. 86.19% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

ALHC has been the topic of a number of analyst reports. UBS Group reaffirmed a “neutral” rating on shares of Alignment Healthcare in a research note on Wednesday, July 8th. JPMorgan Chase & Co. dropped their price objective on Alignment Healthcare from $26.00 to $22.00 and set an “overweight” rating for the company in a report on Tuesday, August 4th. Raymond James Financial downgraded Alignment Healthcare from a “strong-buy” rating to an “outperform” rating and cut their price objective for the company from $22.00 to $19.00 in a research report on Monday, August 3rd. KeyCorp reiterated an “overweight” rating on shares of Alignment Healthcare in a research note on Wednesday, June 10th. Finally, Barclays decreased their target price on Alignment Healthcare from $19.00 to $16.00 and set an “equal weight” rating for the company in a research report on Tuesday, May 26th. Seven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $23.60.

Alignment Healthcare Company Profile

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.