Robert Thomas Freeman, the Chief Financial Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), has recently sold a significant number of shares in the company, according to the latest SEC filings. The transactions, which took place on October 1st and 2nd, involved the sales of common stock totaling over $328,000.
Freeman sold 12,200 shares at a weighted average price of $10.1147, with individual prices ranging from $10.00 to $10.99 per share. Additionally, 9,175 shares were sold at an average of $11.3814 each, with the price per share varying between $11.00 and $11.86. On the following day, another batch of 9,125 shares was sold, this time at an average price of $11.0063, with the transactions occurring within a price range of $11.00 to $11.04 per share.
The sales have resulted in a reduction of Freeman's direct holdings in Alignment Healthcare, but he remains indirectly involved through securities held by FCO Holdings LLC, which is owned by FCO Holdings Trust One, an irrevocable trust where Mr. Freeman is an indirect beneficiary.
Investors often monitor insider transactions such as these for insights into executive sentiment regarding their company's stock. These sales are part of the public record and provide transparency into the financial activities of corporate insiders.
For those interested in the specifics of the transactions, including the precise number of shares sold at each price point within the ranges provided, the reporting person has agreed to furnish detailed information to Alignment Healthcare, Inc., its security holders, or the SEC staff upon request.
The transactions detailed in the SEC filings reflect a notable change in the CFO's stake in the company and are now part of the public record for current and potential investors to consider.
In other recent news, Alignment Healthcare has reported a significant reshuffling of its board. Two members, Jeffrey Margolis and Thomas Carella, have resigned, with Margolis transitioning to a consulting role. The board size has been reduced from eleven to nine, and Margaret McCarthy's position was shifted from a Class I director to a Class III director. The company also reported a 56% increase in health plan membership and a 47% surge in revenue year-over-year. As a result, Baird, TD Cowen, and Piper Sandler have all raised their stock price targets for Alignment Healthcare. These recent developments continue to shape the trajectory of Alignment Healthcare.
InvestingPro Insights
To provide additional context to Robert Thomas Freeman's recent stock sales, let's examine some key financial metrics and insights from InvestingPro for Alignment Healthcare, Inc. (NASDAQ:ALHC).
As of the latest data, Alignment Healthcare boasts a market capitalization of $2.07 billion. The company has demonstrated strong revenue growth, with a 37.46% increase in the last twelve months as of Q2 2024, reaching $2.23 billion. This growth trajectory is even more pronounced in the quarterly figures, showing a 47.34% revenue increase in Q2 2024.
Despite this impressive top-line growth, InvestingPro Tips highlight that Alignment Healthcare is not currently profitable, with a negative P/E ratio of -13.76 for the last twelve months. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.
Interestingly, while the CFO has been selling shares, the stock has shown remarkable performance. InvestingPro data reveals a substantial 143.18% price total return over the past six months, and a 54.84% return over the last year. This strong market performance might explain the timing of the insider sales, as executives often liquidate portions of their holdings after significant price appreciation.
It's worth noting that InvestingPro Tips also point out that Alignment Healthcare operates with a moderate level of debt and does not pay a dividend to shareholders, which is not uncommon for growth-focused companies in the healthcare sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Alignment Healthcare, providing a deeper dive into the company's financial health and market position.
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