Alignment Healthcare (NASDAQ:ALHC) Sees Strong Trading Volume Following Better-Than-Expected Earnings

Shares of Alignment Healthcare, Inc. (NASDAQ:ALHC) saw unusually-strong trading volume on Friday following a better than expected earnings announcement. Approximately 1,569,305 shares traded hands during mid-day trading, a decline of 12% from the previous session’s volume of 1,778,009 shares.The stock last traded at $14.55 and had previously closed at $16.77.

The company reported ($0.05) EPS for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.07. Alignment Healthcare had a negative net margin of 5.84% and a negative return on equity of 108.69%. The company had revenue of $926.93 million for the quarter, compared to analysts’ expectations of $889.83 million. During the same period in the prior year, the company posted ($0.25) EPS. Alignment Healthcare’s revenue was up 47.5% compared to the same quarter last year.

Analyst Ratings Changes

ALHC has been the topic of a number of recent research reports. Barclays increased their price objective on Alignment Healthcare from $8.00 to $9.00 and gave the stock an “underweight” rating in a report on Friday, February 28th. UBS Group raised their price objective on shares of Alignment Healthcare from $16.00 to $17.00 and gave the company a “neutral” rating in a research report on Friday. Stifel Nicolaus boosted their price objective on shares of Alignment Healthcare from $18.00 to $23.00 and gave the company a “buy” rating in a research note on Tuesday, April 8th. Robert W. Baird increased their target price on shares of Alignment Healthcare from $17.00 to $22.00 and gave the stock an “outperform” rating in a research note on Tuesday, April 15th. Finally, JPMorgan Chase & Co. raised their price target on shares of Alignment Healthcare from $14.00 to $17.00 and gave the company a “neutral” rating in a report on Thursday, March 6th. One research analyst has rated the stock with a sell rating, three have given a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $17.17.

Insider Activity

In related news, CEO John E. Kao sold 554,713 shares of the firm’s stock in a transaction dated Thursday, March 6th. The stock was sold at an average price of $15.53, for a total transaction of $8,614,692.89. Following the transaction, the chief executive officer now directly owns 4,733,664 shares of the company’s stock, valued at approximately $73,513,801.92. This trade represents a 10.49 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Robert L. Scavo sold 2,864 shares of the company’s stock in a transaction that occurred on Thursday, March 27th. The stock was sold at an average price of $17.89, for a total value of $51,236.96. Following the completion of the sale, the insider now directly owns 702,953 shares of the company’s stock, valued at approximately $12,575,829.17. This represents a 0.41 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 2,181,855 shares of company stock worth $35,166,057. 6.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Alignment Healthcare

Institutional investors and hedge funds have recently made changes to their positions in the business. Wellington Management Group LLP grew its stake in shares of Alignment Healthcare by 77.9% during the fourth quarter. Wellington Management Group LLP now owns 7,438,500 shares of the company’s stock valued at $83,683,000 after buying an additional 3,257,630 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in Alignment Healthcare by 54.7% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 8,649,042 shares of the company’s stock valued at $97,302,000 after acquiring an additional 3,059,596 shares during the period. Millennium Management LLC grew its position in Alignment Healthcare by 588.3% during the 4th quarter. Millennium Management LLC now owns 3,388,602 shares of the company’s stock worth $38,122,000 after acquiring an additional 2,896,311 shares during the last quarter. Point72 Asset Management L.P. purchased a new position in Alignment Healthcare in the 4th quarter worth approximately $20,087,000. Finally, Broad Bay Capital Management LP bought a new stake in Alignment Healthcare in the fourth quarter valued at approximately $18,804,000. Institutional investors own 86.19% of the company’s stock.

Alignment Healthcare Stock Performance

The company has a debt-to-equity ratio of 1.82, a current ratio of 1.60 and a quick ratio of 1.60. The stock has a market cap of $3.07 billion, a PE ratio of -20.17 and a beta of 1.32. The business has a 50 day moving average price of $17.27 and a two-hundred day moving average price of $14.28.

About Alignment Healthcare

Alignment Healthcare, Inc, a tech-enabled Medicare advantage company, operates consumer-centric health care platform for seniors in the United States. It provides customized health care designed to meet the needs of a diverse array of seniors through its Medicare advantage plans. The company was founded in 2013 and is based in Orange, California.