Alignment Healthcare (NASDAQ:ALHC) Hits New 1-Year Low – Should You Sell?

Shares of Alignment Healthcare, Inc. (NASDAQ:ALHC) reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $8.02 and last traded at $8.33, with a volume of 13584026 shares changing hands. The stock had previously closed at $8.35.

Analysts Set New Price Targets

A number of brokerages recently commented on ALHC. UBS Group reiterated a “neutral” rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. Zacks Research cut Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Wall Street Zen downgraded Alignment Healthcare from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Raymond James Financial lowered Alignment Healthcare from a “strong-buy” rating to an “outperform” rating and reduced their price target for the stock from $22.00 to $19.00 in a report on Monday, August 3rd. Finally, JPMorgan Chase & Co. lowered their price target on shares of Alignment Healthcare from $26.00 to $22.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 4th. Seven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, Alignment Healthcare presently has an average rating of “Moderate Buy” and a consensus target price of $23.60.

Alignment Healthcare Price Performance

The firm has a market cap of $1.63 billion, a price-to-earnings ratio of 41.37 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. The stock’s fifty day moving average price is $14.19 and its 200-day moving average price is $17.45.

Alignment Healthcare (NASDAQ:ALHC) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.13 by $0.04. The firm 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 firm’s quarterly revenue was up 31.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.07 earnings per share. As a group, equities research analysts forecast that Alignment Healthcare, Inc. will post 0.17 earnings per share for the current fiscal year.

Insider Activity

In related news, EVP Joseph S. Konowiecki sold 25,000 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $24.00, for a total transaction of $600,000.00. Following the completion of the sale, the executive vice president directly owned 1,103,816 shares of the company’s stock, valued at approximately $26,491,584. This trade represents a 2.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John E. Kao sold 385,270 shares of the business’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 $4,885,223.60. Following the completion of the sale, the chief executive officer owned 1,223,473 shares in the company, valued at approximately $15,513,637.64. This trade represents a 23.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold a total of 1,377,488 shares of company stock valued at $20,466,194 in the last quarter. Insiders own 5.20% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of ALHC. Versant Capital Management Inc raised its stake 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 valued at $33,000 after acquiring an additional 1,135 shares during the period. Nykredit A S acquired a new position in shares of Alignment Healthcare in the 2nd quarter worth approximately $36,000. Signature Equity Partners LLC purchased a new position in shares of Alignment Healthcare during the 1st quarter worth approximately $46,000. Caitong International Asset Management Co. Ltd boosted its position in shares of Alignment Healthcare by 51,757.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,630 shares of the company’s stock worth $72,000 after purchasing an additional 3,623 shares during the period. Finally, GAMMA Investing LLC boosted its position in shares of Alignment Healthcare by 46.6% during the 2nd quarter. GAMMA Investing LLC now owns 3,368 shares of the company’s stock worth $80,000 after purchasing 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.