Is Alignment Healthcare Inc. (ALHC) A Risky Investment?

Alignment Healthcare Inc. (NASDAQ:ALHC) finished Wednesday with an addition of $1.74 to close at $18.75, an upside of 10.23 percent. An average of 487,660 shares of common stock have been traded in the last five days. There was a gain of $1.84 in the past week. The last 20 days have seen an average of 405,420 shares traded, while the 50-day average volume stands at 290,112.

ALHC stock has increased by 5.16% in the last month. The company shares reached their 1-month lowest point of $15.00 on 09/30/21. Shares of the company touched a low of $15.00 and a high of $28.59 in 52 weeks. In spite of this, the price is down -34.42% from the 52-week high.


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Insider Transactions

191 days have passed since Alignment Healthcare Inc. (ALHC) last reported insider trading activity. WARBURG PINCUS LLC, who is Director, most recently acquired $716,624 shares at $16.83 per share on Apr 06. In this transaction, the insider spent $12,060,782. Director, WARBURG PINCUS LLC, disposed of 716,624 shares at a price of $16.83 on Apr 06. The insider now owns more than $12,060,782 worth of shares. Prior to that, Chief Legal Officer Foster Michael Curtis went on to Sale 50,843 shares at $16.83 each on Apr 06. An amount of $855,688 was transacted.

Valuation Metrics

Alignment Healthcare Inc. (ALHC) has a trailing price-to-earnings (P/E) ratio of 22.90 for the broader industry and 32.30 for the sector. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.21, the price-to-book (PB) ratio at 9.77.

The quick ratio of Alignment Healthcare Inc. for the three months ended June 29 was 3.40, and the current ratio was 3.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.43 and a total debt to equity ratio of 0.43 for the quarter ending June 29. Its gross profit as reported stood at $166.23 million compared to revenue of $959.22 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. For the broader industry, ROE averaged 16.45 over the past year.

Earnings Surprise

The analyst consensus anticipated Alignment Healthcare Inc.’s latest quarter earnings to come in at -$0.11 per share, but it turned out to be -$0.25, a -127.30% surprise. For the quarter, EBITDA amounted to -$35.97 million. Shareholders own equity worth $187.27 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Alignment Healthcare Inc. (ALHC) price momentum. RSI 9-day as of the close on 13 October was 66.67%, suggesting the stock is Neutral, with historical volatility in this time frame at 57.84%.

As of today, ALHC’s price is $17.52 +10.88% or $1.84 from its 5-day moving average. ALHC is currently trading +8.89% higher than its 20-day SMA and -21.05% lower than its 100-day SMA. However, the stock’s current price level is -10.29% below the SMA50.

The stochastic %K and %D were 75.76% and 69.27%, respectively, and the average true range (ATR) was 1.08. With the 14-day stochastic at 93.28% and the average true range at 1.05, the RSI (14) stands at 59.04%. The stock has reached 0.55 on the 9-day MACD Oscillator while the 14-day reading was at 0.76.

Analyst Ratings

Cowen launched coverage on Alignment Healthcare Inc. (NASDAQ: ALHC) in its analyst report released on September 10, 2021. The firm assigned the stock a an Outperform rating.The consensus rating for Alignment Healthcare Inc. (ALHC) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell ALHC, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 4 others rate it as a “buy”.

What is ALHC’s price target for the next 12 months?

Analysts predict a range of price targets between $24.00 and $30.00, with a median target of $26.00. Taking a look at these predictions, the average price target given by analysts for Alignment Healthcare Inc. (ALHC) stock is $26.57.

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