Joseph S. Konowiecki, a director at Alignment Healthcare, Inc. (NASDAQ:ALHC), recently sold shares of the company, according to a new filing with the Securities and Exchange Commission. The transaction, dated November 11, involved the sale of 6,920 shares at a price of $13.73 each, totaling approximately $95,011.
Following this sale, Konowiecki holds 1,134,888 shares of Alignment Healthcare. The transaction was executed to cover tax withholding obligations related to the vesting of restricted stock units, as noted in the filing. This sale was not a discretionary trade by Konowiecki.
In other recent news, Alignment Healthcare has been a focal point for investors due to its strong third-quarter financial results for 2024. The healthcare company reported significant growth, including a 58% increase in health plan membership and a 52% rise in total revenue, which stood at $692 million. Additionally, the company's adjusted EBITDA turned positive at $6 million, marking its second consecutive quarter of profitability.
Financial services firm TD Cowen recently upgraded Alignment Healthcare's price target to $13, maintaining a Buy rating on the company's stock. This decision followed the company's robust third-quarter performance and management's effective execution of their strategic plan.
Furthermore, Alignment Healthcare's management has expressed confidence in achieving an adjusted EBITDA of over $40 million by 2025, along with a minimum of 20% growth in Medicare Advantage membership. The company's recent developments and future financial goals have reinforced TD Cowen's positive outlook on Alignment Healthcare's financial performance and growth potential. These recent developments are indicative of the firm's confidence in Alignment Healthcare's market position and its ability to deliver value to shareholders.
InvestingPro Insights
While Joseph S. Konowiecki's recent sale of Alignment Healthcare shares was primarily to cover tax obligations, it's worth examining the company's current financial position and market performance to provide context for investors.
Alignment Healthcare has demonstrated impressive revenue growth, with a 43.47% increase in the last twelve months as of Q3 2023. This growth trajectory is further emphasized by the company's quarterly revenue growth of 51.61% in Q3 2023. Despite this strong top-line performance, InvestingPro data reveals that Alignment Healthcare is not yet profitable, with an adjusted operating income of -$119.8 million over the last twelve months.
InvestingPro Tips highlight that Alignment Healthcare suffers from weak gross profit margins, which stood at 10.45% for the last twelve months. This suggests that the company may face challenges in converting its revenue growth into sustainable profitability. Additionally, analysts do not anticipate the company will be profitable this year, indicating ongoing concerns about its path to profitability.
However, it's important to note that Alignment Healthcare has shown strong market performance. The stock has delivered a remarkable 116.8% return over the past year, with a particularly strong 90.17% gain in the last six months. This positive momentum is reflected in the company's current stock price, which is trading at 89.68% of its 52-week high.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Alignment Healthcare, providing deeper insights into the company's financial health and market position.
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