Alignment Healthcare (NASDAQ:ALHC) Shares Gap Down – Should You Sell?

Alignment Healthcare, Inc. (NASDAQ:ALHC)’s share price gapped down before the market opened on Friday . The stock had previously closed at $12.83, but opened at $11.10. Alignment Healthcare shares last traded at $11.51, with a volume of 5,217,110 shares.

Analyst Upgrades and Downgrades

ALHC has been the subject of a number of analyst reports. TD Cowen upped their price target on Alignment Healthcare from $8.00 to $10.00 and gave the stock a “buy” rating in a report on Tuesday, August 6th. KeyCorp started coverage on Alignment Healthcare in a research report on Friday, October 11th. They issued a “sector weight” rating on the stock. Stifel Nicolaus raised their price target on shares of Alignment Healthcare from $9.00 to $12.00 and gave the stock a “buy” rating in a research report on Friday, July 26th. Piper Sandler restated an “overweight” rating and issued a $10.00 target price (up previously from $8.00) on shares of Alignment Healthcare in a research note on Tuesday, August 6th. Finally, UBS Group boosted their price target on Alignment Healthcare from $9.00 to $12.00 and gave the company a “neutral” rating in a report on Wednesday, October 30th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, six have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $10.33.

Alignment Healthcare Stock Performance

The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.60 and a current ratio of 1.60. The stock has a 50 day moving average of $11.55 and a 200 day moving average of $9.31. The stock has a market capitalization of $2.19 billion, a P/E ratio of -14.42 and a beta of 1.45.

Alignment Healthcare (NASDAQ:ALHC) last announced its quarterly earnings results on Tuesday, October 29th. The company reported ($0.14) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.14). Alignment Healthcare had a negative net margin of 5.84% and a negative return on equity of 108.69%. The company had revenue of $692.43 million during the quarter, compared to the consensus estimate of $662.11 million. During the same quarter in the previous year, the company posted ($0.19) earnings per share. The company’s revenue for the quarter was up 51.6% compared to the same quarter last year. Equities analysts predict that Alignment Healthcare, Inc. will post -0.69 EPS for the current year.

Insider Buying and Selling

In other Alignment Healthcare news, Director Joseph S. Konowiecki sold 6,920 shares of the stock in a transaction on Monday, November 11th. The stock was sold at an average price of $13.73, for a total transaction of $95,011.60. Following the completion of the transaction, the director now directly owns 1,134,888 shares of the company’s stock, valued at approximately $15,582,012.24. This trade represents a 0.61 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO John E. Kao sold 90,000 shares of Alignment Healthcare stock in a transaction on Wednesday, October 9th. The shares were sold at an average price of $11.33, for a total value of $1,019,700.00. Following the transaction, the chief executive officer now owns 2,543,100 shares in the company, valued at approximately $28,813,323. This trade represents a 3.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 485,507 shares of company stock valued at $5,818,335 in the last three months. 6.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ALHC. Deerfield Management Company L.P. Series C lifted its holdings in Alignment Healthcare by 31.8% in the 2nd quarter. Deerfield Management Company L.P. Series C now owns 10,901,485 shares of the company’s stock valued at $85,250,000 after acquiring an additional 2,630,788 shares during the last quarter. Vanguard Group Inc. raised its holdings in shares of Alignment Healthcare by 1.0% in the 1st quarter. Vanguard Group Inc. now owns 9,239,472 shares of the company’s stock worth $45,828,000 after purchasing an additional 93,262 shares in the last quarter. Hood River Capital Management LLC increased its holdings in shares of Alignment Healthcare by 6.4% in the second quarter. Hood River Capital Management LLC now owns 3,106,690 shares of the company’s stock valued at $24,294,000 after buying an additional 185,854 shares in the last quarter. William Blair Investment Management LLC lifted its holdings in shares of Alignment Healthcare by 94.4% during the second quarter. William Blair Investment Management LLC now owns 3,104,681 shares of the company’s stock valued at $24,279,000 after purchasing an additional 1,507,759 shares during the last quarter. Finally, Renaissance Technologies LLC raised its holdings in Alignment Healthcare by 16.8% during the 2nd quarter. Renaissance Technologies LLC now owns 1,565,800 shares of the company’s stock worth $12,245,000 after buying an additional 225,000 shares during the period. Institutional investors own 86.19% of the company’s stock.

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.