In a recent transaction, Robert L. Scavo, the Chief Information Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), sold 4,852 shares of the company's common stock. The sales were executed at an average price of $4.89 per share, totaling over $23,731. This move came alongside the vesting of restricted stock units, which required the sale of shares to cover tax withholding obligations.
The shares sold by Scavo were part of a series of transactions that occurred on March 15, 2024. According to the details provided, the sales took place at varying prices ranging from $4.77 to $5.06. Following these transactions, Scavo's direct ownership in the company stands at 441,721 shares.
It's also noteworthy that Scavo acquired 80,000 shares of Alignment Healthcare's common stock on March 13, 2024. This acquisition included 70,000 restricted stock units, set to vest progressively on each anniversary of the grant date over four years, contingent upon his ongoing service to the company. Additionally, 10,000 fully vested shares were granted as a discretionary award by the company's Board of Directors. The acquisition of these shares did not involve any monetary transaction and thus was valued at $0.
Investors and followers of Alignment Healthcare, Inc. should be aware that transactions of this nature are quite routine and often involve the vesting of restricted stock units, which are part of the compensation for executives and may lead to the selling of shares to satisfy tax liabilities. The company's shares continue to be traded on the NASDAQ, providing liquidity and the opportunity for shareholders to buy or sell as they see fit.
InvestingPro Insights
As investors assess the recent stock transactions by Alignment Healthcare, Inc. (NASDAQ:ALHC) Chief Information Officer Robert L. Scavo, it's important to consider the broader financial context of the company. With a market capitalization of $943M, Alignment Healthcare is navigating through challenging times, reflected in its performance metrics. The company's price to earnings (P/E) ratio stands at a negative -6.43, indicating that it is not currently profitable. Moreover, the revenue growth remains robust, with a 27.16% increase over the last twelve months as of Q1 2023, signaling potential for future growth despite current profitability concerns.
InvestingPro Tips suggest a mixed outlook for Alignment Healthcare. On one hand, the company holds more cash than debt on its balance sheet, which is a positive sign of financial stability. On the other hand, analysts have revised their earnings expectations downwards for the upcoming period, and they do not anticipate the company will be profitable this year. Additionally, the stock is trading near its 52-week low and has experienced a significant price decline over the last three months.
For those interested in a deeper analysis, InvestingPro offers additional insights. There are 9 more InvestingPro Tips available for Alignment Healthcare, which can be found at https://www.investing.com/pro/ALHC. To access these tips and detailed analytics, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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