Alignment Healthcare (NASDAQ:ALHC) CEO John Kao Sells 385,270 Shares of Stock

Alignment Healthcare, Inc. (NASDAQ:ALHC) CEO John Kao sold 385,270 shares of the firm’s stock in a transaction on Friday, September 11th. The stock was 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 of the company’s stock, valued at approximately $15,513,637.64. This represents a 23.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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.

Alignment Healthcare Stock Down 1.2%

Shares of Alignment Healthcare stock opened at $12.61 on Friday. The stock’s fifty day moving average is $16.17 and its 200-day moving average is $18.03. The firm has a market capitalization of $2.62 billion, a PE 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 12-month low of $12.39 and a 12-month high of $25.12.

Alignment Healthcare (NASDAQ:ALHC) last announced its earnings results on Thursday, July 30th. The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.13 by $0.04. The business had revenue of $1.34 billion during 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 revenue was up 31.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.07 earnings per share. Equities analysts anticipate that Alignment Healthcare, Inc. will post 0.17 earnings per share for the current year.

Alignment Healthcare News Summary

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

Wall Street Analyst Weigh In

ALHC has been the subject of several research analyst reports. Barclays reduced 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 research report on Tuesday, May 26th. TD Cowen reiterated a “buy” rating on shares of Alignment Healthcare in a research report on Monday, August 3rd. JPMorgan Chase & Co. cut their target price on shares of Alignment Healthcare from $26.00 to $22.00 and set an “overweight” rating on the stock in a research note on Tuesday, August 4th. UBS Group reissued a “neutral” rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Alignment Healthcare in a research note on Tuesday, August 4th. Seven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $23.60.

Institutional Investors Weigh In On Alignment Healthcare

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALHC. Allworth Financial LP boosted its position in Alignment Healthcare by 8.9% during the fourth quarter. Allworth Financial LP now owns 6,917 shares of the company’s stock worth $137,000 after purchasing an additional 566 shares during the period. Integrated Wealth Concepts LLC raised its position in shares of Alignment Healthcare by 6.3% in the third quarter. Integrated Wealth Concepts LLC now owns 11,230 shares of the company’s stock valued at $196,000 after purchasing an additional 665 shares during the period. Parallel Advisors LLC lifted its stake in shares of Alignment Healthcare by 87.7% in the fourth quarter. Parallel Advisors LLC now owns 1,654 shares of the company’s stock worth $33,000 after buying an additional 773 shares during the last quarter. Tidal Investments LLC lifted its stake in shares of Alignment Healthcare by 4.9% in the second quarter. Tidal Investments LLC now owns 18,094 shares of the company’s stock worth $253,000 after buying an additional 852 shares during the last quarter. Finally, PNC Financial Services Group Inc. boosted its holdings in shares of Alignment Healthcare by 9.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 11,445 shares of the company’s stock worth $202,000 after buying an additional 962 shares during the period. 86.19% of the stock is currently owned by institutional investors and hedge funds.

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.