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

Alignment Healthcare, Inc. (NASDAQ:ALHC)’s stock 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 changing hands.

Analysts Set New Price Targets

A number of research firms have recently issued reports on ALHC. KeyCorp initiated coverage on shares of Alignment Healthcare in a research report on Friday, October 11th. They issued a “sector weight” rating for the company. Piper Sandler reiterated an “overweight” rating and issued a $10.00 target price (up previously from $8.00) on shares of Alignment Healthcare in a research report on Tuesday, August 6th. Barclays lifted their target price on shares of Alignment Healthcare from $7.00 to $8.00 and gave the company an “underweight” rating in a research note on Wednesday, October 30th. TD Cowen upped their price target on shares of Alignment Healthcare from $8.00 to $10.00 and gave the stock a “buy” rating in a research note on Tuesday, August 6th. Finally, Robert W. Baird increased their price objective on Alignment Healthcare from $10.00 to $11.00 and gave the stock an “outperform” rating in a report on Wednesday, August 14th. One analyst has rated the stock with a sell rating, three have given a hold rating, six have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $10.33.

Alignment Healthcare Price Performance

The stock’s fifty day moving average is $11.55 and its 200-day moving average is $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. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.60 and a quick ratio of 1.60.

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

Insiders Place Their Bets

In related news, CFO Robert Thomas Freeman sold 8,561 shares of Alignment Healthcare stock in a transaction dated Wednesday, September 11th. The stock was sold at an average price of $10.01, for a total transaction of $85,695.61. Following the sale, the chief financial officer now directly owns 399,429 shares of the company’s stock, valued at $3,998,284.29. This trade represents a 2.10 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Dawn Christine Maroney sold 7,074 shares of the firm’s stock in a transaction that occurred on Thursday, August 22nd. The stock was sold at an average price of $9.02, for a total value of $63,807.48. Following the completion of the sale, the insider now owns 1,789,023 shares of the company’s stock, valued at $16,136,987.46. This represents a 0.39 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 485,507 shares of company stock valued at $5,818,335 in the last three months. Company insiders own 6.60% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. nVerses Capital LLC acquired a new stake in Alignment Healthcare during the third quarter worth $95,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Alignment Healthcare during the 3rd quarter valued at about $131,000. Virtu Financial LLC acquired a new stake in shares of Alignment Healthcare during the 1st quarter valued at about $57,000. Creative Planning increased its stake in Alignment Healthcare by 20.0% in the third quarter. Creative Planning now owns 12,442 shares of the company’s stock valued at $147,000 after acquiring an additional 2,072 shares during the period. Finally, Principal Financial Group Inc. raised its position in Alignment Healthcare by 18.1% in the second quarter. Principal Financial Group Inc. now owns 13,521 shares of the company’s stock worth $106,000 after purchasing an additional 2,077 shares in the last quarter. 86.19% of the stock is currently owned by institutional investors and hedge funds.

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.