Alignment Healthcare CEO John Kao sells $1.02 million in stock

Published 20/03/2025, 02:52
Alignment Healthcare CEO John Kao sells $1.02 million in stock

In recent transactions, John E. Kao, the Chief Executive Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), sold a significant amount of the company’s common stock. The sales occurred over two days, March 18 and March 19, 2025, and involved a total of 61,636 shares.

The shares were sold at prices ranging from $16.088 to $16.9588, resulting in a total transaction value of approximately $1,024,371. Following these transactions, Kao retains direct ownership of 4,957,616 shares. Additionally, there are 2,093,100 shares held indirectly through the JEK Trust, for which Kao is the trustee. With a current market capitalization of $3.3 billion, InvestingPro analysis indicates the stock is currently trading near its Fair Value.

These stock sales were executed to cover tax withholding obligations related to the vesting of restricted stock units and do not represent discretionary trades by Kao. According to InvestingPro, while the company operates with moderate debt levels, it’s worth noting that analysts don’t expect profitability this year. Subscribers can access 10+ additional ProTips and comprehensive analysis in the Pro Research Report.

In other recent news, Alignment Healthcare reported its fourth-quarter 2024 earnings, surpassing expectations with an EPS of -0.16 against the forecast of -0.18. The company’s revenue also exceeded projections, reaching $701.2 million compared to the anticipated $674.97 million. This marks Alignment Healthcare’s first year of adjusted EBITDA profitability, with total revenue for 2024 hitting $2.7 billion, a 48% year-over-year increase. Piper Sandler and Raymond (NSE:RYMD) James have both raised their price targets for Alignment Healthcare, with Piper Sandler increasing it to $21 and Raymond James to $19, reflecting confidence in the company’s growth potential. Piper Sandler maintained an Overweight rating, while Raymond James reiterated a Strong Buy rating. Alignment Healthcare’s membership grew by 59% in 2024, with significant expansion outside California, notably in Nevada. Looking ahead, the company has issued revenue guidance for 2025, projecting figures between $3.72 billion and $3.78 billion, with adjusted gross profit expected to range from $415 million to $445 million. Additionally, the company anticipates its health plan membership to grow to between 227,000 and 233,000 by the end of 2025.

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