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CHICAGO - Alight, Inc. (NYSE:ALIT), known for its cloud-based human capital and technology-enabled services, has declared a quarterly cash dividend for its shareholders. The company's Board of Directors announced the dividend of $0.04 per share on its Class A Common Stock, which is scheduled to be paid on March 17, 2025. Shareholders on record by the close of business on March 3, 2025, will be eligible for the dividend payout. The dividend represents an annual yield of 2.41% based on the current stock price of $6.73.
The regular dividend declaration by Alight reflects its commitment to providing value to its shareholders. Alight Solutions operates as a key player in the human capital management sector, offering a range of services that include employee benefits administration and insights through its Alight Worklife® platform. With a market capitalization of $3.58 billion and annual revenue of $3.36 billion, the company has established a significant presence in the industry. According to InvestingPro analysis, while currently not profitable, analysts expect the company to return to profitability this year. The platform is designed to help employers understand their workforce better and engage with employees effectively during critical life events, thereby improving overall wellbeing, engagement, and productivity.
Alight's services are utilized by some of the world's largest organizations, supporting decisions related to health, wealth, and leaves for over 35 million people and their dependents. The company's focus on personalized benefits management and data-driven insights aims to foster growth for organizations of various sizes.
This financial action is based on a press release statement from Alight, Inc. and serves as an update for investors and the market regarding the company's latest financial distributions. It is important to note that the declaration of dividends is a common practice among publicly traded companies, providing a way for them to share profits with their shareholders. The announcement of such dividends is typically viewed as a sign of a company's stable financial health and its ability to generate consistent earnings.
Investors holding Alight's Class A Common Stock can anticipate the receipt of the dividend in mid-March, provided they are recorded shareholders by the early March deadline.
In other recent news, Alight Solutions has been the focus of several significant developments. JPMorgan has maintained a Neutral rating on the company's stock, adjusting its revenue growth expectations for a slower start to 2025, reflecting caution regarding nonrecurring project revenue and the pace of new bookings. Despite this, growth is still anticipated for Alight Solutions in 2025, aligning with the company's management commentary.
Alight Solutions has also promoted two executives, Allison Bassiouni and Deepika Duggirala, to key leadership roles. This move is part of Alight's ongoing efforts to build upon its multi-year transformation.
In another development, Cannae Holdings (NYSE:CNNE) sold 12 million shares of Alight's common stock to meet its liquidity requirements. This move does not indicate a change in the company's outlook on Alight's performance.
Citi has reaffirmed its positive stance on Alight Solutions, maintaining a Buy rating following Alight's third-quarter 2024 performance, which saw a slight revenue increase. Similarly, Needham has increased its price target for Alight Solutions shares to $11.00, up from the previous $9.00, maintaining its Buy rating on the stock. This adjustment follows the company's third-quarter results, which outperformed Wall Street's revenue and EBITDA expectations.
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