Alignment Healthcare CEO John E. Kao sells $1.05 million in stock

Published 13/12/2024, 23:46
Alignment Healthcare CEO John E. Kao sells $1.05 million in stock

John E. Kao, the Chief Executive Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), recently sold a substantial portion of his holdings in the company. According to the latest SEC filing, Kao sold 90,000 shares of common stock on December 11, 2024. The transaction comes as the healthcare company, currently valued at $2.18 billion, has seen its stock surge approximately 41% over the past six months, according to InvestingPro data. The shares were sold at a weighted-average price of $11.6521, with individual transaction prices ranging from $11.44 to $11.81. This sale amounted to a total value of approximately $1.05 million.

Following this transaction, Kao retains a significant stake in Alignment Healthcare, holding 2,363,100 shares indirectly through the JEK Trust, and 2,745,253 shares directly. The transaction was conducted under a pre-established Rule 10b5-1 trading plan, initially adopted on March 14, 2024.

In other recent news, Alignment Healthcare has been the subject of notable financial assessments. Following a robust Q3 performance, the company's target price was raised to $13 by TD Cowen, maintaining a Buy rating. The firm's decision was influenced by Alignment Healthcare's Q3 results, which exceeded consensus estimates in revenue, gross profit, and adjusted EBITDA.

The healthcare company reported a 58% increase in health plan membership and a 52% surge in total revenue, amounting to $692 million. The company also experienced a positive adjusted EBITDA of $6 million, marking its second consecutive quarter of profitability.

These recent developments are indicative of the company's strong market position. Alignment Healthcare's management has expressed confidence in achieving an adjusted EBITDA of over $40 million by 2025, alongside a minimum of 20% growth in Medicare Advantage membership. Such projections have contributed to TD Cowen's revised price target and positive outlook on the company's future financial performance.

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