Alignment Healthcare (NASDAQ:ALHC) Shares Gap Down – Time to Sell?

Shares of Alignment Healthcare, Inc. (NASDAQ:ALHC) gapped down before the market opened on Tuesday . The stock had previously closed at $12.94, but opened at $12.18. Alignment Healthcare shares last traded at $11.2490, with a volume of 2,678,864 shares traded.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on ALHC. Wall Street Zen cut shares of Alignment Healthcare from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Barclays lowered their price target on shares of Alignment Healthcare from $19.00 to $16.00 and set an “equal weight” rating for the company in a report on Tuesday, May 26th. Raymond James Financial lowered shares of Alignment Healthcare from a “strong-buy” rating to an “outperform” rating and reduced their price objective for the company from $22.00 to $19.00 in a report on Monday, August 3rd. UBS Group reaffirmed a “neutral” rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. Finally, KeyCorp reiterated an “overweight” rating on shares of Alignment Healthcare in a research note on Wednesday, June 10th. Seven research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Alignment Healthcare has an average rating of “Moderate Buy” and an average price target of $23.60.

Alignment Healthcare Trading Down 18.4%

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 firm has a market cap of $2.19 billion, a PE ratio of 55.63 and a beta of 1.11. The business has a fifty day moving average price of $15.94 and a 200 day moving average price of $17.97.

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

Insider Transactions at Alignment Healthcare

In other Alignment Healthcare news, CEO John E. Kao sold 385,270 shares of Alignment Healthcare stock in a transaction on 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 transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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. Also, EVP Joseph S. Konowiecki sold 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $24.00, for a total value of $600,000.00. Following the sale, the executive vice president directly owned 1,103,816 shares of the company’s stock, valued at approximately $26,491,584. This represents a 2.21% 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. Over the last 90 days, insiders have sold 1,326,577 shares of company stock worth $19,907,564. Corporate insiders own 5.20% of the company’s stock.

Institutional Investors Weigh In On Alignment Healthcare

Hedge funds have recently added to or reduced their stakes in the company. WINTON GROUP Ltd purchased a new stake in Alignment Healthcare during the second quarter worth about $1,164,000. Arizona State Retirement System lifted its position in shares of Alignment Healthcare by 15.8% during the 2nd quarter. Arizona State Retirement System now owns 53,553 shares of the company’s stock valued at $1,275,000 after acquiring an additional 7,318 shares during the period. Nykredit A S purchased a new stake in shares of Alignment Healthcare during the 2nd quarter worth approximately $36,000. Corient Private Wealth LP grew its holdings in shares of Alignment Healthcare by 128.2% in the 2nd quarter. Corient Private Wealth LP now owns 136,505 shares of the company’s stock worth $3,250,000 after acquiring an additional 76,677 shares during the period. Finally, HighTower Advisors LLC acquired a new stake in shares of Alignment Healthcare in the 2nd quarter worth approximately $755,000. Institutional investors and hedge funds own 86.19% of the company’s stock.

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.