Alignment Healthcare (NASDAQ:ALHC) Sees Unusually-High Trading Volume – Time to Buy?

Alignment Healthcare, Inc. (NASDAQ:ALHC) saw unusually-high trading volume on Thursday . 5,399,507 shares were traded during mid-day trading, an increase of 12% from the previous session’s volume of 4,804,313 shares.The stock last traded at $9.4790 and had previously closed at $8.71.

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on ALHC shares. TD Cowen reissued a “buy” rating on shares of Alignment Healthcare in a report on Wednesday. KeyCorp reaffirmed an “overweight” rating on shares of Alignment Healthcare in a report on Wednesday, June 10th. Wall Street Zen cut shares of Alignment Healthcare from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. UBS Group restated a “neutral” rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. Finally, Zacks Research cut shares of Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Seven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $23.60.

Alignment Healthcare Stock Down 4.0%

The business has a 50-day moving average price of $14.96 and a 200 day moving average price of $17.68. 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 has a market capitalization of $1.73 billion, a P/E ratio of 43.95 and a beta of 1.11.

Alignment Healthcare (NASDAQ:ALHC) last announced its quarterly 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. 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 business posted $0.07 earnings per share. Alignment Healthcare’s quarterly revenue was up 31.6% on a year-over-year basis. On average, equities analysts expect that Alignment Healthcare, Inc. will post 0.17 EPS for the current fiscal year.

Insider Transactions at Alignment Healthcare

In other news, President Dawn Maroney sold 122,707 shares of the company’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 $1,555,924.76. Following the sale, the president directly owned 794,606 shares in the company, valued at approximately $10,075,604.08. This represents a 13.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Joseph Konowiecki sold 23,511 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $8.61, for a total transaction of $202,429.71. Following the completion of the transaction, the executive vice president directly owned 1,080,305 shares of the company’s stock, valued at approximately $9,301,426.05. The trade was a 2.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 worth $20,466,194 in the last three months. Insiders own 5.20% of the company’s stock.

Institutional Trading of Alignment Healthcare

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE grew its stake in Alignment Healthcare by 156.5% in the 1st 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. 1492 Capital Management LLC raised its stake in shares of Alignment Healthcare by 61.8% during the fourth quarter. 1492 Capital Management LLC now owns 324,865 shares of the company’s stock valued at $6,416,000 after acquiring an additional 124,143 shares in the last quarter. Simplify Asset Management Inc. raised its stake in shares of Alignment Healthcare by 92.0% during the fourth quarter. Simplify Asset Management Inc. now owns 262,880 shares of the company’s stock valued at $5,192,000 after acquiring an additional 125,946 shares in the last quarter. William Blair Investment Management LLC boosted its holdings in shares of Alignment Healthcare by 8.7% in the fourth quarter. William Blair Investment Management LLC now owns 2,305,255 shares of the company’s stock valued at $45,529,000 after purchasing an additional 185,303 shares during the period. Finally, Principal Financial Group Inc. boosted its holdings in shares of Alignment Healthcare by 36.5% in the first quarter. Principal Financial Group Inc. now owns 544,274 shares of the company’s stock valued at $9,590,000 after purchasing an additional 145,491 shares during the period. 86.19% of the stock is owned by hedge funds and other 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.