Alignment Healthcare CEO John E. Kao sells shares for $8.6 million

Published 07/03/2025, 01:32
Alignment Healthcare CEO John E. Kao sells shares for $8.6 million

John E. Kao, the Chief Executive Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), recently reported a significant transaction involving the sale of company stock. The timing is notable as ALHC trades near its 52-week high of $16.25, following an impressive 183% return over the past year. According to a recent SEC filing, Mr. Kao sold 554,713 shares of common stock on March 6, 2025, at a weighted-average price of $15.53 per share. This transaction resulted in a total sale value of approximately $8.6 million in the now $2.94 billion market cap company.

The report also disclosed that these shares were sold to cover tax withholding obligations related to the vesting of performance share units (PSUs). This sale was not a discretionary trade by Mr. Kao but rather a requirement to meet tax liabilities. Following this transaction, Mr. Kao holds 4,733,664 shares directly, with additional shares held indirectly through a trust, as noted in the filing. According to InvestingPro, ALHC currently trades at Fair Value, with 8 additional key insights available to subscribers through their comprehensive Pro Research Report.

This sale comes after Mr. Kao acquired 2,543,124 shares on March 4, 2025, at no cost, upon the certification of performance objectives related to PSUs granted in September 2023. These objectives were reportedly achieved above the target, reflecting the company’s strong momentum, evidenced by its 60.5% price appreciation over the past six months.

In other recent news, Alignment Healthcare has reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an EPS of -0.16 compared to the forecast of -0.18. The company’s revenue also exceeded projections, reaching $701.2 million against the expected $674.97 million. The company achieved its first year of adjusted EBITDA profitability, marking a significant milestone. Piper Sandler and Raymond (NSE:RYMD) James both adjusted their outlooks on Alignment Healthcare, with Piper Sandler raising the price target to $21 and maintaining an Overweight rating, while Raymond James increased the target to $19 and reiterated a Strong Buy rating. These revisions reflect confidence in Alignment Healthcare’s potential for sustained growth and profitability. The company saw a membership growth of approximately 59% and an impressive top-line growth of 51%. For 2025, Alignment Healthcare provided guidance, projecting revenue between $3.72 billion and $3.78 billion, with adjusted gross profit expected to range from $415 million to $445 million. The company anticipates membership to grow to between 227,000 and 233,000, highlighting its expansion strategy and market positioning.

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