Alignment healthcare CEO sells shares worth $1.72 million

John E. Kao, the Chief Executive Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), recently sold 90,000 shares of the company’s common stock. The shares were sold at an average price of $19.0969, totaling approximately $1.72 million. The sale comes as ALHC shares have surged nearly 297% over the past year, with the stock currently trading near $19.49, close to its 52-week high of $21.06. Following this transaction, Kao retains ownership of 2,003,100 shares indirectly, as well as an additional 4,923,186 shares directly. The sale was conducted under a pre-arranged 10b5-1 trading plan, which was adopted on March 14, 2024. The indirect shares are held by the JEK Trust, for which Kao is the trustee. According to InvestingPro analysis, Alignment Healthcare, with a market capitalization of $3.74 billion, has shown strong momentum despite not being profitable in the last twelve months. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report for deeper insights into ALHC’s financial health and growth prospects.

In other recent news, Alignment Healthcare reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an EPS of -0.16 compared to the forecast of -0.18, and revenue reaching $701.2 million against the expected $674.97 million. The company achieved its first year of adjusted EBITDA profitability and experienced a significant membership growth of 59% in 2024. Looking forward, Alignment Healthcare has provided guidance for 2025, projecting revenue between $3.72 billion and $3.78 billion, indicating a 40% year-over-year growth at the midpoint. The company also anticipates health plan membership to grow to between 227,000 and 233,000 by the end of 2025.

On the analyst front, Stifel raised its price target for Alignment Healthcare to $23, maintaining a Buy rating, following the Centers for Medicare & Medicaid Services’ (CMS) announcement of higher-than-expected rates for 2026. Piper Sandler also adjusted its price target to $21, citing confidence in the company’s growth potential and its effective "flywheel" approach. Meanwhile, Raymond (NSE:RYMD) James increased its target to $19, highlighting the company’s robust performance in the fourth quarter, which exceeded expectations in several key areas.

These developments reflect a positive outlook for Alignment Healthcare, with analysts expressing optimism about the company’s strategies and growth trajectory.

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