Bullish indicating open at $55-$60, IPO prices at $37
In a turbulent market environment, Alight Solutions Inc. (ALIT) stock has reached a 52-week low, dipping to $5.8. According to InvestingPro data, the company’s management has been actively buying back shares, demonstrating confidence despite the stock trading 42% below its 52-week high of $10.04. This latest price level reflects a significant downturn from the company’s performance over the past year, with Foley Trasimene Acquisition reporting a 1-year change of -38.65%. Investors are closely monitoring ALIT as it navigates through the current economic headwinds, which have impacted its market valuation and investor sentiment. While the company isn’t currently profitable, analysts tracked by InvestingPro expect profitability this year, with consensus price targets ranging from $8 to $12 per share. The 52-week low serves as a critical point of analysis for both the company and its stakeholders as they strategize for a potential rebound or further adjustments in the face of ongoing market volatility. Get access to 5 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
In other recent news, Alight Solutions has announced its financial projections and strategic direction during an investor day, highlighting a goal of achieving $1 billion in cumulative free cash flow by 2027. The company anticipates an annual revenue growth rate of 4-6% by that year, alongside an adjusted EBITDA margin of approximately 30%. In their latest quarterly earnings, Alight’s revenue and adjusted EBITDA fell slightly short of DA Davidson’s expectations, yet the firm maintained a Buy rating with a $10 price target. Alight has also announced a restructuring program expected to save $55 million annually, contributing to a projected adjusted EBITDA increase of 4% to 9% by 2025.
Additionally, Alight has declared a quarterly cash dividend of $0.04 per share on its Class A Common Stock, payable on March 17, 2025, to shareholders on record by March 3, 2025. Significant changes to the Board of Directors have been announced, with Russell Fradin appointed as the new Chairman, effective March 1, 2025. The new board members bring diverse expertise, aligning with Alight’s strategic goals. These developments come as Alight navigates a transitional period with a new senior management team aiming to establish a consistent record of delivering solid quarterly results.
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