Alignment Healthcare (NASDAQ:ALHC) Stock Gets Price Target Cut from KeyCorp

Alignment Healthcare (NASDAQ:ALHC) had its price objective decreased by KeyCorp from $28.00 to $12.00 in a research note issued to investors on Friday, MarketBeat reports. KeyCorp currently has an overweight rating on the stock.

ALHC has been the topic of several other research reports. Barclays dropped their target price on Alignment Healthcare from $16.00 to $10.00 and set an “equal weight” rating on the stock in a report on Tuesday, October 6th. Wall Street Zen downgraded Alignment Healthcare from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. TD Cowen restated a “buy” rating on shares of Alignment Healthcare in a research note on Wednesday, September 16th. Zacks Research lowered Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Finally, UBS Group reaffirmed a “neutral” rating on shares of Alignment Healthcare in a research report on Wednesday, July 8th. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Alignment Healthcare currently has a consensus rating of “Moderate Buy” and a consensus target price of $19.18.

Alignment Healthcare Stock Performance

Shares of NASDAQ:ALHC opened at $7.55 on Friday. The company’s 50-day moving average price is $11.49 and its two-hundred day moving average price is $16.63. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.70 and a quick ratio of 1.70. Alignment Healthcare has a one year low of $6.01 and a one year high of $25.12. The stock has a market capitalization of $1.57 billion, a PE ratio of 39.74 and a beta of 1.14.

Alignment Healthcare (NASDAQ:ALHC) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.04. The company had revenue of $1.34 billion during 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%. The company’s quarterly revenue was up 31.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.07 EPS. On average, equities analysts forecast that Alignment Healthcare will post 0.15 EPS for the current fiscal year.

Insiders Place Their Bets

In other Alignment Healthcare news, EVP Joseph S. Konowiecki sold 23,511 shares of the company’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $8.61, for a total value of $202,429.71. Following the sale, the executive vice president owned 1,080,305 shares in the company, valued at $9,301,426.05. This represents a 2.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hyong Kim sold 32,479 shares of the firm’s stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $8.30, for a total value of $269,575.70. Following the completion of the sale, the insider directly owned 299,271 shares of the company’s stock, valued at approximately $2,483,949.30. The trade was a 9.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 1,061,967 shares of company stock worth $13,642,490 in the last three months. 5.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Versant Capital Management Inc increased its holdings in shares of Alignment Healthcare by 463.3% in the second quarter. Versant Capital Management Inc now owns 1,380 shares of the company’s stock valued at $33,000 after purchasing an additional 1,135 shares during the last quarter. Nykredit A S bought a new position in shares of Alignment Healthcare in the second quarter valued at about $36,000. Signature Equity Partners LLC acquired a new stake in shares of Alignment Healthcare during the 1st quarter worth about $46,000. GAMMA Investing LLC lifted its stake in shares of Alignment Healthcare by 46.6% during the 2nd quarter. GAMMA Investing LLC now owns 3,368 shares of the company’s stock worth $80,000 after buying an additional 1,070 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its stake in shares of Alignment Healthcare by 51,757.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,630 shares of the company’s stock worth $72,000 after buying an additional 3,623 shares during the last quarter. 86.19% of the stock is currently owned by institutional investors.

Alignment Healthcare News Summary

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

• Positive Sentiment: Six of Alignment Healthcare’s seven eligible Medicare Advantage contracts earned CMS 2027 ratings of 4 Stars or higher, including three plans rated 4.5 Stars. The contracts cover Arizona, California, Nevada, North Carolina and Texas. Alignment Healthcare Earns 4 Stars or Higher for Six of Seven Eligible Medicare Advantage Contracts
• Positive Sentiment: JPMorgan lowered its price target from $22 to $10 but maintained an “overweight” rating, while KeyCorp reduced its target from $28 to $12 and also kept an “overweight” rating. These targets imply substantial upside from recent levels. Analyst Comments on Alignment Healthcare
• Neutral Sentiment: A reported October short-interest figure showed zero shares short and a zero-day days-to-cover ratio. That data suggests short covering is not a significant explanation for the session’s trading, although the figure appears inconsistent with the report’s description of a “significant increase.”
• Negative Sentiment: Alignment’s California H3815 HMO contract received a 3.5-Star rating, below the 4-Star threshold that can affect Medicare Advantage enrollment appeal and quality-related payments. The company disputes the result and plans to pursue administrative and legal remedies, but investors are concerned about potential effects on membership, revenue and future bonuses. Alignment Healthcare Stock Falls on 2027 Medicare Star Ratings
• Negative Sentiment: William Blair downgraded the stock to “Market Perform,” adding to the pressure from sharply reduced price targets. The market’s reaction indicates that the weaker California rating is outweighing the company’s otherwise strong plan-rating performance. William Blair Downgrades Alignment Healthcare
• Negative Sentiment: Chief Medical Officer Hyong Kim sold 32,479 shares to cover tax withholding on vested equity awards. The transaction is relatively small and tax-related, but it adds to investor scrutiny after recent insider selling. Alignment Healthcare Insider Share Sale

Alignment Healthcare Company Profile

Alignment Healthcare, Inc is a technology-enabled Medicare Advantage company focused on providing health coverage and care services for older adults. The company offers Medicare Advantage plans that combine medical benefits with care coordination, wellness support, and other services designed to help members manage their health.

Alignment operates through an integrated healthcare model that uses its proprietary technology platform to support physicians, care teams, and members. Its services include personalized care management, clinical coordination, virtual and in-home support, and member assistance through its concierge-style approach.