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Alignment Healthcare, Inc. (NASDAQ:ALHC), a healthcare company with a market capitalization of $2.81 billion that has seen its stock surge nearly 100% over the past year, reported that President Dawn Christine Maroney recently sold 30,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted-average price of $13.6128, with individual transaction prices ranging from $13.40 to $13.91. This transaction, executed under a pre-established Rule 10b5-1 plan, amounted to a total value of approximately $408,384. Following the sale, Maroney retains ownership of 1,606,097 shares in the company. The sale comes as the stock trades near its 52-week high of $14.61, with technical indicators suggesting overbought conditions. According to InvestingPro, which offers comprehensive analysis and 12+ additional insights for ALHC, the company currently trades at a price-to-book ratio of 24.4x while remaining unprofitable with a negative EPS of $0.76.
In other recent news, Alignment Healthcare has been attracting attention with its robust performance and promising projections. Stifel analysts recently adjusted the company's price target from $14.00 to $16.00, maintaining a Buy rating. This adjustment was based on the company's strong Annual Enrollment Period (AEP) results and reiterated guidance for 2024 and 2025. The company's technology-driven Medicare Advantage plan has consistently shown superior patient management, allowing it to gain market share in a challenging post-pandemic environment.
Recent developments show Alignment Healthcare's revenue growth of 43.5% over the last twelve months. However, challenges with profitability metrics have been noted. The company's success is also reflected in its health plan membership, which has seen a 35% year-on-year increase, reaching approximately 209,900 members. Projections for future membership growth are also promising, with an anticipated increase to between 225,000 and 231,000 by the end of 2025.
The company's third-quarter results for 2024 revealed a 58% increase in health plan membership and a 52% increase in total revenue, amounting to $692 million. This performance led TD Cowen to increase its price target for the company from $10.00 to $13.00, while maintaining a Buy rating. The company's management also expressed confidence in achieving an adjusted EBITDA of over $40 million by 2025 and expects at least a 20% growth in Medicare Advantage membership. These recent developments indicate a positive trajectory for Alignment Healthcare.
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