John Kao Sells 172,600 Shares of Alignment Healthcare (NASDAQ:ALHC) Stock

Alignment Healthcare, Inc. (NASDAQ:ALHC) CEO John Kao sold 172,600 shares of the stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $12.96, for a total value of $2,236,896.00. Following the transaction, the chief executive officer owned 618,166 shares in the company, valued at $8,011,431.36. The trade was a 21.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 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.

Alignment Healthcare Stock Performance

Shares of ALHC stock opened at $12.61 on Friday. The firm has a 50 day moving average of $16.17 and a 200-day moving average of $18.03. The company has a market cap of $2.62 billion, a price-to-earnings ratio of 66.37 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, Inc. has a 52 week low of $12.39 and a 52 week high of $25.12.

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

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. Raymond James Financial cut shares of Alignment Healthcare from a “strong-buy” rating to an “outperform” rating and cut their price objective for the stock from $22.00 to $19.00 in a research report on Monday, August 3rd. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Alignment Healthcare in a research report on Tuesday, August 4th. KeyCorp reaffirmed an “overweight” rating on shares of Alignment Healthcare in a research note on Wednesday, June 10th. TD Cowen reiterated a “buy” rating on shares of Alignment Healthcare in a report on Monday, August 3rd. Finally, Wall Street Zen cut Alignment Healthcare from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Seven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $23.60.

Trending Headlines about Alignment Healthcare

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

• Positive Sentiment: CEO John Kao’s sales were conducted under a pre-arranged Rule 10b5-1 plan and were intended to cover tax-withholding obligations tied to vested equity awards, reducing the likelihood that the transactions reflect a negative view of Alignment Healthcare’s business prospects. SEC Form 4 filing
• Neutral Sentiment: Alignment Health’s annual survey reported worsening challenges for seniors related to aging in place, support gaps and medical debt. The announcement highlights issues relevant to the company’s target market but does not provide a direct change to revenue, enrollment or earnings expectations. Alignment Health senior survey
• Neutral Sentiment: Reported short interest was zero shares, with a zero-day short-interest ratio. Because the figures show no measurable short position, they provide little evidence of either bearish positioning or potential short-covering support.
• Negative Sentiment: CEO John Kao sold a combined 557,870 shares across September 10–11, worth approximately $7.1 million, reducing his reported ownership. President Dawn Maroney also sold 122,707 shares for about $1.6 million. Although the transactions were tied to tax obligations, their size and timing can weigh on sentiment and may be contributing to the stock’s decline. SEC Form 4 filing
• Negative Sentiment: Kaplan Fox announced an investigation into Alignment Healthcare for possible securities-law violations. The announcement does not establish wrongdoing, but it introduces legal and reputational uncertainty that can pressure the stock. Kaplan Fox investigation announcement

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Wellington Management Group LLP grew its holdings in shares of Alignment Healthcare by 9.8% during the second 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 during the last quarter. T. Rowe Price Investment Management Inc. raised its holdings in shares of Alignment Healthcare by 0.6% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 12,643,784 shares of the company’s stock worth $249,715,000 after acquiring an additional 79,268 shares during the last quarter. William Blair Investment Management LLC acquired a new stake in shares of Alignment Healthcare in the 2nd quarter worth about $184,799,000. Invesco Ltd. lifted its position in Alignment Healthcare by 38.9% in the 4th quarter. Invesco Ltd. now owns 6,202,592 shares of the company’s stock valued at $122,501,000 after acquiring an additional 1,735,962 shares in the last quarter. Finally, California State Teachers Retirement System lifted its position in Alignment Healthcare by 2,587.6% in the 2nd quarter. California State Teachers Retirement System now owns 5,326,749 shares of the company’s stock valued at $126,830,000 after acquiring an additional 5,128,549 shares in the last quarter. 86.19% of the stock is owned by institutional investors.

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.