Alignment Healthcare (NASDAQ:ALHC) Downgraded by KeyCorp to Sector Weight

Alignment Healthcare (NASDAQ:ALHC) was downgraded by investment analysts at KeyCorp from an “overweight” rating to a “sector weight” rating in a research report issued on Friday, Marketbeat.com reports.

Several other brokerages have also commented on ALHC. The Goldman Sachs Group restated a “buy” rating and set a $12.00 price target on shares of Alignment Healthcare in a research note on Thursday, October 22nd. Barclays lowered their price objective on shares of Alignment Healthcare from $16.00 to $10.00 and set an “equal weight” rating for the company in a research note on Tuesday, October 6th. William Blair cut shares of Alignment Healthcare from an “outperform” rating to a “market perform” rating in a report on Friday, October 9th. UBS Group dropped their target price on shares of Alignment Healthcare from $22.00 to $9.00 and set a “neutral” rating on the stock in a report on Monday, October 12th. Finally, Zacks Research lowered shares of Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Six equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, Alignment Healthcare presently has an average rating of “Hold” and an average price target of $15.91.

Alignment Healthcare Stock Down 1.5%

Shares of NASDAQ ALHC opened at $8.06 on Friday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.70 and a current ratio of 1.70. The firm has a market capitalization of $1.67 billion, a price-to-earnings ratio of 42.42 and a beta of 1.14. The stock has a 50 day moving average price of $9.99 and a 200 day moving average price of $16.89. Alignment Healthcare has a 52-week low of $6.01 and a 52-week high of $25.12.

Alignment Healthcare (NASDAQ:ALHC) last released its quarterly earnings data on Thursday, October 29th. The company reported ($0.04) EPS for the quarter, hitting the consensus estimate of ($0.04). The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.31 billion. Alignment Healthcare had a return on equity of 20.02% and a net margin of 0.89%. Alignment Healthcare’s quarterly revenue was up 36.7% on a year-over-year basis. During the same period last year, the business posted $0.02 EPS. Sell-side analysts expect that Alignment Healthcare will post 0.14 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Joseph S. Konowiecki sold 23,511 shares of the firm’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $8.61, for a total transaction of $202,429.71. Following the sale, the executive vice president owned 1,080,305 shares of the company’s stock, valued at $9,301,426.05. This trade represents a 2.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 385,270 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 value of $4,885,223.60. Following the sale, the chief executive officer directly owned 1,223,473 shares in the company, valued at approximately $15,513,637.64. The trade was a 23.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 1,061,967 shares of company stock valued at $13,642,490. 5.20% of the stock is owned by insiders.

Institutional Trading of Alignment Healthcare

Several hedge funds have recently modified their holdings of ALHC. Wellington Management Group LLP grew its stake 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 worth $447,160,000 after buying an additional 1,681,427 shares during the last quarter. William Blair Investment Management LLC acquired a new position in Alignment Healthcare during the 2nd quarter valued at about $184,799,000. Danica Pension Livsforsikringsaktieselskab purchased a new stake in Alignment Healthcare in the second quarter valued at about $87,794,000. Bank of New York Mellon Corp purchased a new stake in Alignment Healthcare in the second quarter valued at about $87,077,000. Finally, Bank of America Corp DE boosted its holdings in Alignment Healthcare by 156.5% in the first quarter. Bank of America Corp DE now owns 3,215,667 shares of the company’s stock worth $56,660,000 after acquiring an additional 1,961,778 shares in the last quarter. 86.19% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Alignment Healthcare

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

• Positive Sentiment: Third-quarter revenue reached $1.36 billion, exceeding the $1.31 billion analyst consensus and increasing 36.7% year over year. The company’s quarterly loss of $0.04 per share matched expectations. Alignment Healthcare Reports Third Quarter 2026 Results
• Positive Sentiment: Management said it expects at least 20% top-line growth in 2027, supporting the company’s longer-term expansion story. Alignment 2027 Growth Outlook
• Neutral Sentiment: The earnings release and conference call showed continued revenue momentum, but the quarter remained unprofitable, with results declining from earnings of $0.02 per share in the prior-year period. Alignment Healthcare Q3 2026 Earnings Call Transcript
• Negative Sentiment: Alignment lowered its 2026 adjusted EBITDA outlook to no less than $100 million. The reduced profitability forecast appears to outweigh the revenue beat because it raises concerns about margins and near-term earnings quality. Alignment Healthcare Q3 Guidance
• Negative Sentiment: Bleichmar Fonti & Auld LLP announced an investigation into potential securities fraud related to allegations of inflated EBITDA. The announcement is not a finding of wrongdoing, but it adds legal and reputational risk after the stock’s significant decline and may increase volatility. ALHC Securities Investigation Announcement

About Alignment Healthcare

Alignment Healthcare, Inc is a technology-enabled health insurance company focused on providing Medicare Advantage plans for seniors. The company combines health plan coverage with care coordination and clinical services designed to help members manage chronic conditions, access providers and navigate the health care system.

Its offerings include Medicare Advantage plans, supplemental benefits and member support services. Alignment also uses its proprietary technology platform, including the Alignment Virtual Application (AVA), to support care teams, analyze health information and help deliver more personalized services to members.

Founded in 2013, Alignment Healthcare serves Medicare-eligible consumers in selected markets, including California, Florida, Nevada and North Carolina.