John E. Kao, the Chief Executive Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), has sold 90,000 shares of the company's common stock. The transaction, which took place on November 11, 2024, was executed at an average price of $13.42 per share, amounting to a total of approximately $1.2 million.
Following this sale, Kao holds 2,453,100 shares indirectly through JEK Trust, where he serves as trustee, and 2,745,253 shares directly. The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, adopted earlier this year on March 14, 2024.
In other recent news, Alignment Healthcare has been in the spotlight following a strong third-quarter financial performance. The company reported a 58% increase in health plan membership and a 52% rise in total revenue, which reached $692 million. The adjusted EBITDA also turned positive at $6 million, marking the second consecutive quarter of profitability. These developments led TD Cowen, a financial services firm, to upgrade its price target for Alignment Healthcare to $13.00, up from the previous $10.00, while maintaining a Buy rating on the company's stock.
In addition to these financial milestones, Alignment Healthcare's management has projected an adjusted EBITDA of over $40 million by 2025. They also anticipate a minimum of 20% growth in Medicare Advantage membership. TD Cowen's new price target reflects this positive outlook, indicating confidence in Alignment Healthcare's growth potential in the coming years.
These recent developments underscore the company's robust financial health and its commitment to delivering value to shareholders. However, it is important to note that these projections are subject to various factors, including market conditions and operational efficiencies. As always, investors are advised to conduct their own due diligence before making investment decisions.
InvestingPro Insights
As Alignment Healthcare's CEO John E. Kao sells a significant portion of his shares, investors might be curious about the company's financial health and market performance. According to InvestingPro data, Alignment Healthcare has shown impressive revenue growth, with a 43.47% increase in the last twelve months as of Q3 2024, reaching $2.47 billion. This growth trajectory is further emphasized by a robust 51.61% quarterly revenue growth in Q3 2024.
Despite the strong top-line performance, InvestingPro Tips highlight that Alignment Healthcare is not currently profitable, with analysts not anticipating profitability this year. This is reflected in the company's negative operating income of $119.8 million over the last twelve months. However, the company operates with a moderate level of debt, which could provide some financial flexibility.
Interestingly, Alignment Healthcare has demonstrated strong market performance, with a remarkable 116.8% price total return over the past year. This positive momentum is also evident in the short term, with a 14.93% return over the last month and a substantial 55.01% return over the last three months.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Alignment Healthcare, providing deeper insights into the company's financial position and market outlook.
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