Alignment Healthcare Inc. (NASDAQ: ALHC) stock jumped 0.26% on Tuesday to $11.58 against a previous-day closing price of $11.55. With 0.57 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.93 million shares. During the session, the Healthcare Plans company that operates in wider Healthcare sector, reached to the highest price of $11.63 whereas the lowest price it dropped to was $11.31. The 52-week range on ALHC shows that it touched its highest point at $23.00 and its lowest point at $6.14 during that stretch. It currently has a 1-year price target of $19.89.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ALHC was down-trending over the past week, with a drop of -14.29%, but this was down by -0.77% over a month. Three-month performance dropped to -25.15% while six-month performance rose 11.45%. The stock lost -44.03% in the past year, while it has lost -17.64% so far this year. A look at the trailing 12-month EPS for ALHC yields -0.78 with Next year EPS estimates of -0.74. For the next quarter, that number is -0.30. This implies an EPS growth rate of -827.70% for this year and 8.60% for next year.
Float and Shares Shorts:
At present, 182.12 million ALHC shares are outstanding with a float of 172.80 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.45 million, which was 1.84% higher than short shares on Sep 14, 2022. In addition to Mr. John E. Kao as the firm’s Pres, CEO & Director, Mr. Robert Thomas Freeman serves as its Chief Financial Officer.
Through their ownership of 79.68% of ALHC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.57% of ALHC, in contrast to 25.85% held by mutual funds. Shares owned by individuals account for 15.74%. As the largest shareholder in ALHC with 8.52% of the stake, Fidelity Management & Research Co holds 15,950,871 shares worth 15,950,871. A second-largest stockholder of ALHC, The Vanguard Group, Inc., holds 7,890,705 shares, controlling over 4.21% of the firm’s shares. T. Rowe Price Investment Manageme is the third largest shareholder in ALHC, holding 7,361,208 shares or 3.93% stake. With a 1.92% stake in ALHC, the Fidelity Select Port. – Health Ca is the largest stakeholder. A total of 3,600,000 shares are owned by the mutual fund manager. The American Funds Small Cap World Fu, which owns about 1.87% of ALHC stock, is the second-largest Mutual Fund holder. It holds 3,500,000 shares valued at 46.34 million. T Rowe Price Small Cap Value Fund holds 1.54% of the stake in ALHC, owning 2,888,010 shares worth 38.24 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ALHC since 10 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ALHC analysts setting a high price target of $24.00 and a low target of $16.00, the average target price over the next 12 months is $19.63. Based on these targets, ALHC could surge 107.25% to reach the target high and rise by 38.17% to reach the target low. Reaching the average price target will result in a growth of 69.52% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ALHC will report FY 2022 earnings on 03/02/2023. Analysts have provided yearly estimates in a range of -$0.72 being high and -$0.82 being low. For ALHC, this leads to a yearly average estimate of -$0.80. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Alignment Healthcare Inc. surprised analysts by $0.02 when it reported -$0.22 EPS against a consensus estimate of -$0.24. The surprise factor in the prior quarter was $0.20. Based on analyst estimates, the high estimate for the next quarter is -$0.27 and the low estimate is -$0.31. The average estimate for the next quarter is thus -$0.30.
Summary of Insider Activity:
Insiders traded ALHC stock several times over the past three months with 5 Buys and 21 Sells. In these transactions, 2,772,648 shares were bought while 19,769,963 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 81 over the past year. The total number of shares bought during that period was 4,122,766 while 46,806,451 shares were sold.