William P. Foley II, a director at Alight, Inc. (NYSE:ALIT), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Foley sold a total of 5,000,000 shares of Class A Common Stock on November 13, 2024. The shares were sold at prices ranging from $8.23 to $8.453 per share, amounting to a total transaction value of approximately $41.3 million.
Following these transactions, Foley retains direct ownership of 883,323 shares. Additionally, he indirectly holds 6,833,304 shares through entities such as Trasimene Capital FT, LLC and Bilcar FT, LP. The transactions reflect Foley's ongoing management of his investment portfolio within Alight, a provider of cloud-based human capital solutions.
In other recent news, Alight Solutions reported a slight revenue increase in its third-quarter 2024 performance, with a minor year-over-year decline of 0.5% to $555 million. The company's revenue now consists largely of recurring revenue, making up 91% of the total. Citi has maintained its Buy rating on Alight shares, following the company's recent divestiture and recapitalization of Sparta, and completed cloud migration. Needham, another financial analyst firm, also holds a positive outlook, raising its price target for Alight shares to $11 from $9.
Alight's contracted revenue saw an 8%-9% sequential expansion, and the company has strengthened relationships with several prominent clients. Additionally, the company has announced a new quarterly dividend of $0.04 per share, approved by its Board, and provided fourth-quarter guidance aligning with consensus estimates.
Analysts from Citi and Needham express optimism for Alight's fiscal year 2025, supported by a robust pipeline and on-track cost-saving measures. The company's new management has been commended for efforts to revitalize Alight's market approach. The firm expects its annual recurring revenue bookings to grow by double digits in the latter half of the year, indicating potential for future growth.
InvestingPro Insights
The recent sale of shares by William P. Foley II, a director at Alight, Inc. (NYSE:ALIT), comes at a time when the company's stock has shown strong performance. According to InvestingPro data, Alight has delivered a robust 16.03% return over the past three months, indicating positive momentum in the stock price.
Despite the director's sale, there are several encouraging signs for Alight. An InvestingPro Tip reveals that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. This buyback activity, combined with the high shareholder yield noted in another InvestingPro Tip, suggests that the company is committed to returning value to its shareholders.
Financially, Alight's revenue for the last twelve months as of Q3 2023 stood at $3,358 million, with a notable revenue growth of 26.91% over the same period. However, the company's profitability remains a concern, as indicated by its negative P/E ratio of -20.07 for the last twelve months as of Q3 2023.
Looking ahead, analysts expect Alight to become profitable this year, which could be a significant turning point for the company. This expectation aligns with the InvestingPro Tip that net income is projected to grow this year.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Alight, which could provide valuable context for understanding the company's financial health and market position.
William P. Foley II, a director at Alight, Inc. (NYSE:ALIT), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Foley sold a total of 5,000,000 shares of Class A Common Stock on November 13, 2024. The shares were sold at prices ranging from $8.23 to $8.453 per share, amounting to a total transaction value of approximately $41.3 million.
Following these transactions, Foley retains direct ownership of 883,323 shares. Additionally, he indirectly holds 6,833,304 shares through entities such as Trasimene Capital FT, LLC and Bilcar FT, LP. The transactions reflect Foley's ongoing management of his investment portfolio within Alight, a provider of cloud-based human capital solutions.
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