Alignment Healthcare CEO sells shares totaling $2.2 million

Published 13/03/2025, 22:04
Alignment Healthcare CEO sells shares totaling $2.2 million

John E. Kao, the Chief Executive Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), has recently sold a significant portion of the company’s stock. According to a recent SEC filing, Mr. Kao sold shares totaling approximately $2.2 million from the $2.96 billion market cap company. The transactions took place over two days, with shares sold at prices ranging from $15.3577 to $15.7379, as the stock trades near its 52-week high of $16.25.

On March 11, Mr. Kao sold 90,000 shares, generating approximately $1.38 million, with sale prices ranging from $15.3577 to $15.72. The following day, March 12, he sold an additional 53,122 shares for about $819,542 at prices between $15.4231 and $15.7379.

Post-transaction, Mr. Kao retains ownership of over 4.6 million shares in the company. The sales were part of a pre-established trading plan, aligning with Rule 10b5-1, which allows insiders to set up a predetermined schedule for selling company stock.

In other recent news, Alignment Healthcare has reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of -0.16, outperforming the forecast of -0.18. The company’s revenue also exceeded projections, reaching $701.2 million against the expected $674.97 million. This marks a significant milestone as the company achieved its first year of adjusted EBITDA profitability. Piper Sandler and Raymond (NSE:RYMD) James have shown increased confidence in Alignment Healthcare, with Piper Sandler raising its price target to $21 while maintaining an Overweight rating, and Raymond James increasing its target to $19 with a Strong Buy rating. The analysts highlighted the company’s robust membership growth and effective cost management strategies. Alignment Healthcare’s membership grew by 59% in 2024, with notable expansion outside California, particularly in Nevada. For 2025, the company has provided revenue guidance between $3.72 billion and $3.78 billion, and anticipates continued membership growth, projecting between 227,000 and 233,000 members by the end of the year. The firm’s strategic focus on care management and high STARS ratings has been emphasized as key drivers for its growth and profitability.

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