Insider Selling: Alignment Healthcare (NASDAQ:ALHC) CEO Sells $356,200.00 in Stock

Alignment Healthcare, Inc. (NASDAQ:ALHC) CEO John Kao sold 27,400 shares of the company’s stock in a transaction that occurred on 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 transaction, the chief executive officer owned 590,766 shares of the company’s stock, valued at approximately $7,679,958. The trade was a 4.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Alignment Healthcare Stock Performance

Shares of NASDAQ ALHC opened at $8.35 on Friday. The stock has a market cap of $1.73 billion, a PE ratio of 43.95 and a beta of 1.11. Alignment Healthcare, Inc. has a 1 year low of $8.27 and a 1 year high of $25.12. The firm has a fifty day moving average price of $14.96 and a 200-day moving average price of $17.68. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.70 and a quick ratio of 1.70.

Alignment Healthcare (NASDAQ:ALHC) last released its earnings results on Thursday, July 30th. The company reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.13 by $0.04. Alignment Healthcare had a net margin of 0.89% and a return on equity of 20.02%. The company had revenue of $1.34 billion for the quarter, compared to analysts’ expectations of $1.31 billion. During the same quarter in the previous year, the company earned $0.07 EPS. Alignment Healthcare’s revenue for the quarter was up 31.6% on a year-over-year basis. Equities analysts anticipate that Alignment Healthcare, Inc. will post 0.17 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Alignment Healthcare

Large investors have recently made changes to their positions in the company. Wellington Management Group LLP grew its holdings in Alignment Healthcare by 9.8% during the 2nd quarter. Wellington Management Group LLP now owns 18,780,363 shares of the company’s stock valued at $447,160,000 after buying an additional 1,681,427 shares in the last quarter. William Blair Investment Management LLC bought a new stake in Alignment Healthcare in the second quarter worth $184,799,000. Geode Capital Management LLC increased its position in Alignment Healthcare by 8.4% in the fourth quarter. Geode Capital Management LLC now owns 3,841,703 shares of the company’s stock worth $75,884,000 after purchasing an additional 299,279 shares during the last quarter. Danica Pension Livsforsikringsaktieselskab purchased a new stake in Alignment Healthcare during the second quarter valued at $87,794,000. Finally, Bank of New York Mellon Corp bought a new position in Alignment Healthcare during the second quarter valued at $87,077,000. 86.19% of the stock is owned by institutional investors.

Alignment Healthcare News Roundup

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

• Positive Sentiment: Some analysts remain constructive after the selloff. Coverage continues to describe ALHC as a potential bargain, and the stock retains a consensus “Moderate Buy” rating, although price targets may not yet reflect the latest concerns. Analysts Are Bullish on Alignment Healthcare
• Neutral Sentiment: EVP Joseph Konowiecki sold 23,511 shares for approximately $202,430 at an average price of $8.61. The filing states that the sale covered tax-withholding obligations related to vested equity awards, making it less indicative of management’s investment outlook. SEC Filing for Joseph Konowiecki
• Neutral Sentiment: CEO John Kao previously sold 27,400 shares for $356,200 under a pre-arranged Rule 10b5-1 plan. While the transaction reduced his direct holdings by 4.43%, its scheduled nature limits the bearish signal. SEC Filing for John Kao
• Negative Sentiment: Investors reacted negatively to management’s disclosures at the Baird conference, particularly uncertainty surrounding Medicare Advantage star ratings. Those ratings can influence reimbursement, enrollment and profitability, so limited visibility increased concerns about Alignment’s earnings outlook. Hagens Berman Conference Investigation Update
• Negative Sentiment: Reports also highlighted potential Medicare Advantage reforms, creating uncertainty about how regulatory changes could affect Alignment’s economics and future growth. Alignment Healthcare Faces Medicare Advantage Reform
• Negative Sentiment: Multiple law firms announced securities-fraud investigations following the steep conference-related selloff. The investigations do not establish wrongdoing, but they add potential litigation, reputational and headline risk. Securities Fraud Investigation Into Alignment Healthcare

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. UBS Group reiterated a “neutral” rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. Raymond James Financial downgraded Alignment Healthcare from a “strong-buy” rating to an “outperform” rating and dropped their price target for the stock from $22.00 to $19.00 in a research note on Monday, August 3rd. Wall Street Zen lowered shares of Alignment Healthcare from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Alignment Healthcare in a research report on Tuesday, August 4th. Finally, KeyCorp reissued an “overweight” rating on shares of Alignment Healthcare in a report on Wednesday, June 10th. Seven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target 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.