Alignment Healthcare (NASDAQ:ALHC) Stock Price Down 7.7% – Should You Sell?

Alignment Healthcare, Inc. (NASDAQ:ALHC)’s share price dropped 7.7% during mid-day trading on Monday . The company traded as low as $16.54 and last traded at $16.5440. Approximately 881,520 shares were traded during mid-day trading, a decline of 73% from the average daily volume of 3,309,128 shares. The stock had previously closed at $17.93.

Wall Street Analysts Forecast Growth

ALHC has been the topic of a number of research reports. TD Cowen boosted their price objective on Alignment Healthcare from $18.50 to $25.00 and gave the company a “buy” rating in a research note on Friday, January 16th. KeyCorp reiterated an “overweight” rating and set a $28.00 price target on shares of Alignment Healthcare in a research report on Thursday, January 22nd. JPMorgan Chase & Co. upped their price target on Alignment Healthcare from $23.00 to $26.00 and gave the company an “overweight” rating in a research report on Thursday, February 5th. Robert W. Baird set a $28.00 price target on Alignment Healthcare in a research report on Friday, January 30th. Finally, Raymond James Financial set a $22.00 price target on Alignment Healthcare in a research report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $24.60.

Alignment Healthcare Stock Performance

The company has a quick ratio of 1.58, a current ratio of 1.58 and a debt-to-equity ratio of 1.56. The company’s 50-day moving average is $19.28 and its two-hundred day moving average is $19.47. The company has a market capitalization of $3.55 billion, a P/E ratio of 190.67, a PEG ratio of 2.78 and a beta of 1.26.

Alignment Healthcare (NASDAQ:ALHC) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.05 earnings per share for the quarter, topping the consensus estimate of $0.01 by $0.04. The company had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. Alignment Healthcare had a net margin of 0.47% and a return on equity of 11.50%. Alignment Healthcare’s revenue for the quarter was up 33.3% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.05) earnings per share. Equities analysts anticipate that Alignment Healthcare, Inc. will post 0.17 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Andreas P. Wagner sold 11,602 shares of the stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of $18.22, for a total transaction of $211,388.44. Following the completion of the sale, the insider owned 148,628 shares of the company’s stock, valued at approximately $2,708,002.16. This represents a 7.24% 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. Also, insider Christopher J. Joyce sold 18,013 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $17.79, for a total value of $320,451.27. Following the sale, the insider directly owned 305,451 shares of the company’s stock, valued at approximately $5,433,973.29. This trade represents a 5.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 1,474,097 shares of company stock valued at $28,679,550. Corporate insiders own 5.20% of the company’s stock.

Institutional Trading of Alignment Healthcare

A number of institutional investors have recently made changes to their positions in ALHC. Wellington Management Group LLP boosted its stake in shares of Alignment Healthcare by 167.3% during the third quarter. Wellington Management Group LLP now owns 11,089,727 shares of the company’s stock valued at $193,516,000 after purchasing an additional 6,940,277 shares during the period. Bank of New York Mellon Corp boosted its holdings in Alignment Healthcare by 232.5% in the first quarter. Bank of New York Mellon Corp now owns 3,313,110 shares of the company’s stock valued at $58,377,000 after acquiring an additional 2,316,777 shares in the last quarter. Invesco Ltd. boosted its holdings in Alignment Healthcare by 122.3% in the second quarter. Invesco Ltd. now owns 4,170,529 shares of the company’s stock valued at $58,387,000 after acquiring an additional 2,294,739 shares in the last quarter. Capital World Investors bought a new stake in Alignment Healthcare in the fourth quarter valued at $44,203,000. Finally, Loomis Sayles & Co. L P bought a new stake in Alignment Healthcare in the fourth quarter valued at $44,162,000. Hedge funds and other institutional investors own 86.19% of the company’s stock.

About Alignment Healthcare

Alignment Healthcare, Inc (NASDAQ: ALHC) is a health care company specializing in value-based care for Medicare Advantage beneficiaries. The company leverages an integrated care model that combines in-home clinical services, telehealth capabilities and digital health tools to manage chronic conditions, improve outcomes and enhance patient experience.

At the core of Alignment Healthcare’s approach is a proprietary technology platform that aggregates real-time clinical and claims data to support preventive care, risk stratification and personalized care plans.