Alignment Healthcare (NASDAQ:ALHC) Stock Price Up 9% Following Strong Earnings

Alignment Healthcare, Inc. (NASDAQ:ALHC) shares shot up 9% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $12.92 and last traded at $12.85. 4,919,784 shares traded hands during mid-day trading, an increase of 70% from the average session volume of 2,900,526 shares. The stock had previously closed at $11.78.

The company reported $0.07 EPS for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.14. Alignment Healthcare had a negative return on equity of 80.49% and a negative net margin of 3.02%. The business had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $960.25 million. During the same period in the previous year, the company posted ($0.13) earnings per share. The business’s revenue for the quarter was up 49.0% on a year-over-year basis.

Analyst Ratings Changes

A number of brokerages have recently commented on ALHC. UBS Group boosted their price objective on Alignment Healthcare from $16.00 to $17.00 and gave the stock a “neutral” rating in a research report on Friday, May 2nd. Stephens upgraded Alignment Healthcare to a “strong-buy” rating in a research note on Monday, June 2nd. Robert W. Baird boosted their target price on Alignment Healthcare from $17.00 to $22.00 and gave the stock an “outperform” rating in a research note on Tuesday, April 15th. Finally, Stifel Nicolaus boosted their target price on Alignment Healthcare from $18.00 to $23.00 and gave the stock a “buy” rating in a research note on Tuesday, April 8th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $17.17.

Insider Activity

In other Alignment Healthcare news, insider Andreas P. Wagner sold 19,399 shares of the business’s stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $15.26, for a total value of $296,028.74. Following the completion of the sale, the insider owned 204,075 shares in the company, valued at approximately $3,114,184.50. The trade was a 8.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Atlantic (Aln Hlth) L. General sold 17,000,000 shares of the business’s stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $15.28, for a total value of $259,760,000.00. Following the completion of the sale, the director owned 44,302,175 shares of the company’s stock, valued at approximately $676,937,234. This represents a 27.73% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 17,660,262 shares of company stock valued at $269,263,746 over the last 90 days. Insiders own 7.00% of the company’s stock.

Institutional Investors Weigh In On Alignment Healthcare

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MCF Advisors LLC lifted its stake in Alignment Healthcare by 87.6% in the first quarter. MCF Advisors LLC now owns 2,165 shares of the company’s stock valued at $40,000 after buying an additional 1,011 shares during the last quarter. Skandinaviska Enskilda Banken AB publ purchased a new stake in Alignment Healthcare in the first quarter valued at approximately $42,000. Amalgamated Bank lifted its stake in Alignment Healthcare by 21.6% in the first quarter. Amalgamated Bank now owns 3,466 shares of the company’s stock valued at $65,000 after buying an additional 616 shares during the last quarter. Signaturefd LLC lifted its stake in Alignment Healthcare by 142.6% in the second quarter. Signaturefd LLC now owns 3,768 shares of the company’s stock valued at $53,000 after buying an additional 2,215 shares during the last quarter. Finally, RiverPark Advisors LLC purchased a new stake in Alignment Healthcare in the fourth quarter valued at approximately $106,000. Hedge funds and other institutional investors own 86.19% of the company’s stock.

Alignment Healthcare Stock Performance

The company has a debt-to-equity ratio of 2.95, a current ratio of 1.69 and a quick ratio of 1.69. The stock has a 50 day simple moving average of $13.93 and a two-hundred day simple moving average of $15.33. The company has a market cap of $2.57 billion, a PE ratio of -27.08 and a beta of 1.16.

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.