Alignment healthcare’s CIO Robert Scavo sells $860,408 in stock

Robert L. Scavo, the Chief Information Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), recently sold shares of the company worth $860,408. The transaction, which took place on March 6, involved the sale of 55,403 shares at an average price of $15.53 per share. The stock is currently trading near its 52-week high of $16.25, having delivered an impressive return of 183% over the past year. According to InvestingPro analysis, the company maintains a GOOD financial health score. According to the Form 4 filing with the Securities and Exchange Commission, the sale was necessary to cover tax withholding obligations related to the vesting of performance share units (PSUs).

Prior to this sale, Scavo had acquired 292,000 shares of common stock on March 4, following the achievement of certain performance objectives set by the company’s Compensation Committee. These shares were granted as part of a performance-based incentive plan, with half of the shares vesting immediately and the remainder scheduled to vest at the end of 2025, contingent upon Scavo’s continued service with the company.

After the recent transactions, Scavo’s total direct ownership stands at 673,419 shares.

In other recent news, Alignment Healthcare has reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an EPS of -0.16 compared to the forecast of -0.18. The company’s revenue also exceeded projections, reaching $701.2 million against the expected $674.97 million. For the full year 2024, Alignment Healthcare achieved total revenue of $2.7 billion, marking a 48% increase year-over-year, and recorded its first year of adjusted EBITDA profitability. Piper Sandler has raised its price target for Alignment Healthcare to $21, up from $14, while maintaining an Overweight rating, citing the company’s "flywheel" approach as a key driver for success. Raymond (NSE:RYMD) James also increased its price target to $19 from $14, reiterating a Strong Buy rating, following the company’s robust fourth-quarter performance. The firm noted Alignment Healthcare’s membership growth of approximately 59% and a significant outperformance in top-line growth and adjusted EBITDA. Looking forward, Alignment Healthcare has provided guidance for 2025, forecasting revenue between $3.72 billion and $3.78 billion, with projected membership growth to reach between 227,000 and 233,000 members by the end of the year. The company also anticipates adjusted gross profit to range from $415 million to $445 million, and adjusted EBITDA guidance has been increased by $7.5 million from previous estimates, now standing at $35 million to $60 million.

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