Alignment Healthcare (NASDAQ:ALHC) Shares Gap Down – Here’s What Happened

Alignment Healthcare, Inc. (NASDAQ:ALHC)’s stock price gapped down prior to trading 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 trading hands.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Barclays cut 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. Wall Street Zen cut Alignment Healthcare from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Zacks Research downgraded Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. KeyCorp reaffirmed an “overweight” rating on shares of Alignment Healthcare in a research note on Wednesday, June 10th. Finally, UBS Group reiterated a “neutral” rating on shares of Alignment Healthcare in a report on Wednesday, July 8th. Seven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to 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 market cap of $2.19 billion, a PE ratio of 55.63 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. The business has a 50-day simple moving average of $15.94 and a 200-day simple moving average of $17.97.

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

Insiders Place Their Bets

In related news, 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 transaction of $600,000.00. Following the sale, the executive vice president directly owned 1,103,816 shares of the company’s stock, valued at $26,491,584. This represents a 2.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $12.68, for a total transaction of $4,885,223.60. Following 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. Additional details regarding this sale are available in the official SEC disclosure. 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 1,326,577 shares of company stock worth $19,907,564 over the last three months. Company insiders own 5.20% of the company’s stock.

Institutional Trading of Alignment Healthcare

A number of large investors have recently modified their holdings of ALHC. Bank of America Corp DE boosted its holdings in Alignment Healthcare by 156.5% in the first quarter. Bank of America Corp DE now owns 3,215,667 shares of the company’s stock valued at $56,660,000 after purchasing an additional 1,961,778 shares during the period. 1492 Capital Management LLC grew its stake in Alignment Healthcare by 61.8% during the 4th quarter. 1492 Capital Management LLC now owns 324,865 shares of the company’s stock worth $6,416,000 after purchasing an additional 124,143 shares in the last quarter. Simplify Asset Management Inc. increased its holdings in Alignment Healthcare by 92.0% during the 4th quarter. Simplify Asset Management Inc. now owns 262,880 shares of the company’s stock worth $5,192,000 after purchasing an additional 125,946 shares during the period. William Blair Investment Management LLC increased its holdings in Alignment Healthcare by 8.7% during the 4th quarter. William Blair Investment Management LLC now owns 2,305,255 shares of the company’s stock worth $45,529,000 after purchasing an additional 185,303 shares during the period. Finally, Investment House LLC acquired a new stake in Alignment Healthcare in the 4th quarter valued at about $1,665,000. Hedge funds and other institutional investors 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.