Needham & Company LLC Downgrades Alight (NYSE:ALIT) to Hold

Alight (NYSE:ALIT) was downgraded by investment analysts at Needham & Company LLC from a “buy” rating to a “hold” rating in a note issued to investors on Thursday.

Other analysts have also issued reports about the company. Bank of America started coverage on Alight in a report on Tuesday. They issued an “underperform” rating and a $1.40 price objective for the company. UBS Group dropped their target price on shares of Alight from $6.50 to $4.00 and set a “buy” rating on the stock in a report on Thursday, November 6th. Weiss Ratings restated a “sell (d-)” rating on shares of Alight in a research note on Wednesday, January 21st. Wedbush lowered their price target on shares of Alight from $7.00 to $5.00 and set an “outperform” rating for the company in a research report on Thursday, November 6th. Finally, DA Davidson cut their price objective on shares of Alight from $6.00 to $5.00 and set a “buy” rating on the stock in a research report on Tuesday, February 10th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $3.98.

Alight Price Performance

Alight stock traded down $0.47 during midday trading on Thursday, reaching $0.84. The company’s stock had a trading volume of 54,697,017 shares, compared to its average volume of 12,444,747. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.21 and a current ratio of 1.21. Alight has a fifty-two week low of $0.72 and a fifty-two week high of $7.66. The firm has a market capitalization of $446.82 million, a PE ratio of -0.21 and a beta of 1.09. The stock’s 50 day simple moving average is $1.70 and its 200 day simple moving average is $2.62.

Alight (NYSE:ALIT) last released its quarterly earnings data on Thursday, February 19th. The company reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.07). The company had revenue of $653.00 million for the quarter, compared to analysts’ expectations of $654.30 million. Alight had a positive return on equity of 7.89% and a negative net margin of 94.23%. On average, equities research analysts forecast that Alight will post 0.54 earnings per share for the current year.

Insider Activity

In other news, Director Kausik Rajgopal purchased 40,000 shares of the business’s stock in a transaction dated Tuesday, November 25th. The stock was bought at an average cost of $2.24 per share, with a total value of $89,600.00. Following the purchase, the director directly owned 125,202 shares of the company’s stock, valued at approximately $280,452.48. This trade represents a 46.95% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Robert A. Schriesheim purchased 42,098 shares of the stock in a transaction that occurred on Wednesday, November 26th. The stock was purchased at an average cost of $2.38 per share, with a total value of $100,193.24. Following the purchase, the director owned 109,130 shares in the company, valued at $259,729.40. This represents a 62.80% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 193,116 shares of company stock worth $448,984 over the last 90 days. 1.93% of the stock is owned by company insiders.

Institutional Trading of Alight

A number of institutional investors and hedge funds have recently modified their holdings of ALIT. TradeLink Capital LLC bought a new stake in Alight during the fourth quarter valued at about $25,000. Strs Ohio acquired a new stake in shares of Alight in the first quarter worth $25,000. Moss Adams Wealth Advisors LLC acquired a new position in Alight during the 4th quarter valued at $26,000. Renaissance Technologies LLC bought a new stake in Alight in the 4th quarter valued at $26,000. Finally, Allworth Financial LP increased its holdings in shares of Alight by 848.5% during the 4th quarter. Allworth Financial LP now owns 14,920 shares of the company’s stock worth $29,000 after purchasing an additional 13,347 shares during the period. 96.74% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Alight

Here are the key news stories impacting Alight this week:

• Positive Sentiment: Insider buying highlighted by multiple reports; directors and other insiders increased stakes during Q4, which investors interpret as management confidence and a potential catalyst for value recovery. Insiders Piled Into These 3 Stocks in Q4—One Stands Out
• Positive Sentiment: Unusual options activity — a large block of calls (~5,659 contracts, ~61% above typical call volume) suggests speculative/hedged bullish positioning from some traders, which can underpin short-term demand in a volatile name.
• Neutral Sentiment: Company press release: Alight reported full-year revenue of ~$2.3B and said it generated strong operating cash flow and free cash flow, providing a financial stability narrative even though the stock moved lower after results. Alight Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: New senior leadership/valuation pieces are under discussion; analysts and media are re-assessing the company under the new team which could create multi-week volatility as guidance and strategy are digested. A Look At Alight (ALIT) Valuation After New Senior Leadership Appointments
• Negative Sentiment: Earnings miss: Q4 EPS was $0.18, below consensus (~$0.24–$0.25), and revenue of $653M slightly missed estimates — the miss triggered immediate selling pressure. Alight, Inc. (ALIT) Lags Q4 Earnings Estimates
• Negative Sentiment: Guidance and conservatism concerns: analyst notes and the earnings call transcript signal cautious 2026 guidance from new management; at least one firm trimmed its price target, adding to downside pressure. Alight, Inc. (ALIT) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Analyst/coverage moves and market skepticism: coverage initiations and notes (e.g., Bank of America initiation) and analyst target cuts are creating headline risk and contributing to volatility. Bank of America Initiates Coverage on Alight (NYSE:ALIT)

Alight Company Profile

Alight, Inc (NYSE: ALIT) is a leading provider of cloud-based human capital and financial solutions designed to help organizations and their employees navigate critical life and work events. The company offers a comprehensive suite of services, including payroll administration, benefits enrollment and management, workforce and analytics solutions, health and welfare support, and financial wellness programs. By integrating advanced technology with expert advisory services, Alight aims to simplify the administration of human resources and benefits functions, improve employee engagement and productivity, and drive cost efficiencies for its clients.

Alight’s core platform leverages cloud architecture and automation to deliver scalable and secure solutions that address the needs of mid-sized and large enterprises.