Alignment Healthcare CEO John Kao sells shares worth $615,952

Published 29/03/2025, 01:30
Alignment Healthcare CEO John Kao sells shares worth $615,952

John E. Kao, the Chief Executive Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), has sold 34,430 shares of common stock, according to a recent SEC filing. The sale comes as the company’s stock trades near its 52-week high of $18.44, having delivered an impressive 269% return over the past year. The shares were sold at a weighted-average price of $17.89, resulting in a total transaction value of approximately $615,952. This sale was executed to cover tax withholding obligations related to the vesting of restricted stock units, as noted in the filing. Following the transaction, Kao retains direct ownership of 4,923,186 shares, with additional holdings in a trust. According to InvestingPro data, the company currently maintains a market capitalization of $3.51 billion and trades at a significant price-to-book multiple, with technical indicators suggesting overbought conditions. For comprehensive insider trading analysis and 11 additional key insights about ALHC, consider exploring the detailed Pro Research Report available on InvestingPro.

In other recent news, Alignment Healthcare has reported fourth-quarter 2024 earnings that surpassed analysts’ expectations, with an earnings per share (EPS) of -0.16 compared to the forecast of -0.18. The company’s revenue also exceeded projections, reaching $701.2 million against an expected $674.97 million. Piper Sandler and Raymond (NSE:RYMD) James have both raised their price targets for Alignment Healthcare, with Piper Sandler increasing its target to $21 and maintaining an Overweight rating, while Raymond James lifted its target to $19 and reiterated a Strong Buy rating. These adjustments reflect confidence in Alignment Healthcare’s growth strategies and robust performance.

The company’s membership grew by 59% in 2024, significantly boosting revenue to $2.7 billion, marking a 48% increase year-over-year. Alignment Healthcare also achieved its first year of adjusted EBITDA profitability, a milestone for the company. Looking forward, the company has provided guidance for 2025, projecting revenue between $3.72 billion and $3.78 billion and adjusted gross profit ranging from $415 million to $445 million. The company anticipates membership growth to reach between 227,000 and 233,000 members by the end of 2025, representing a growth of approximately 35% from January 2025’s 209,900 members.

Analyst John Ransom from Raymond James highlighted the promising future for Alignment Healthcare, citing the company’s ability to grow at a rate of 20% or more annually while enhancing EBITDA profitability. Piper Sandler emphasized the company’s "flywheel" approach as a key driver for success, noting its potential for sustained and profitable growth. These recent developments underscore investor optimism and confidence in Alignment Healthcare’s strategic direction and financial health.

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