Bullish indicating open at $55-$60, IPO prices at $37
George Gregory A., the Chief Commercial Officer of Alight, Inc. (NYSE:ALIT), recently sold 84,929 shares of the company's Class A Common Stock. The transaction, dated November 15, 2024, was executed at a weighted average price of $7.5958 per share, resulting in a total sale value of approximately $645,103. Following this sale, Gregory retains ownership of 223,327 shares, which includes restricted stock units scheduled to vest in the future. The shares were sold within a price range of $7.58 to $7.66.
In other recent news, Alight Solutions revealed stable third-quarter results, with a minor year-over-year revenue decline of 0.5% to $555 million. However, the company emphasized a shift towards recurring revenue, now making up 91% of total revenue. Following these results, financial analyst firms Citi and Needham maintained their Buy ratings on Alight shares, with both firms raising their price target to $11. Alight also announced a new quarterly dividend of $0.04 per share, a strategic move to maximize shareholder value.
The company's recent divestiture and recapitalization of Sparta, along with the completion of its cloud migration, were highlighted as positive developments. Alight reported an 8%-9% sequential expansion in contracted revenue and strengthened relationships with several prominent clients. Citi analysts expressed confidence in Alight's progress towards its mid-term goals, supported by a robust pipeline and on-track cost-saving measures.
Finally, Alight expects its annual recurring revenue bookings to grow by double digits in the latter half of the year. The company's upcoming Investor Day in Q1 2025 is anticipated to provide more insights into its long-term strategy and operational plans. These recent developments reflect Alight's resilience in its business model and its strategic approach to capital allocation.
InvestingPro Insights
The recent insider sale by Alight's Chief Commercial Officer comes at a time when the company's stock is trading at 73.89% of its 52-week high, with a current price of $7.73. This transaction aligns with some interesting financial metrics and analyst perspectives provided by InvestingPro.
According to InvestingPro data, Alight has a market capitalization of $4.11 billion and has shown significant revenue growth of 26.91% over the last twelve months as of Q3 2024, reaching $3.358 billion. Despite this growth, the company's profitability remains a concern, as indicated by its negative P/E ratio of -18.28.
InvestingPro Tips highlight that management has been aggressively buying back shares, suggesting confidence in the company's value. Additionally, analysts anticipate that Alight will become profitable this year, which could explain the insider's decision to sell at current price levels.
It's worth noting that Alight has a high shareholder yield, which may be attractive to investors looking for companies that return value to shareholders. However, the company does not pay a dividend, focusing instead on other methods of shareholder returns.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Alight, providing a deeper understanding of the company's financial health and future prospects.
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