Robert Thomas Freeman, the Chief Financial Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), recently sold a significant portion of his holdings in the company. According to the SEC filing, Freeman sold 30,500 shares of common stock on October 14, 2024. The shares were sold at a weighted-average price of $11.504, with the transactions occurring at prices ranging from $11.25 to $11.71. This sale amounted to a total value of approximately $350,872.
Following these transactions, Freeman holds 164,109 shares indirectly and 865,407 shares directly in Alignment Healthcare. The indirect shares are held by FCO Holdings LLC, a limited liability company linked to an irrevocable trust of which Freeman is an indirect beneficiary. The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, which was adopted on March 15, 2024.
In other recent news, Alignment Healthcare has reported significant developments. The company's Medicare Advantage members are predominantly enrolled in plans that have received high ratings from the Centers for Medicare & Medicaid Services (CMS) for 2025. Analysts from William Blair have maintained an 'Outperform' rating on Alignment Healthcare, reflecting the company's ability to retain a 4-Star Rating for its principal contract, H3815.
Financially, Alignment Healthcare has seen a 47% increase in revenue and a 56% surge in health plan membership. This positive performance has led firms such as Baird, TD Cowen, and Stifel to raise their price targets. KeyBanc has also initiated coverage on Alignment Healthcare, assigning a Sector Weight rating and acknowledging the company's potential for long-term growth.
In addition, there have been changes in Alignment Healthcare's board structure with the resignations of Thomas Carella and Jeffrey Margolis. Margolis has transitioned into a consulting agreement with Alignment Healthcare's primary operating subsidiary. Alignment Healthcare has forecasted at least 20% growth in 2025, and an upward adjustment in year-end membership expectations by 8,000 members, while stating it has no plans to enter new states in 2025.
InvestingPro Insights
As Robert Thomas Freeman, CFO of Alignment Healthcare, Inc. (NASDAQ:ALHC), reduces his stake in the company, investors might be interested in additional context provided by InvestingPro data and tips.
Alignment Healthcare has shown impressive revenue growth, with a 47.34% increase in quarterly revenue as of Q2 2024. This strong top-line performance is complemented by a substantial 121.63% price return over the past six months, indicating significant investor optimism. The stock is currently trading near its 52-week high, with the price at 95.47% of its peak.
Despite these positive indicators, InvestingPro Tips reveal some challenges. The company is not profitable over the last twelve months, and analysts do not anticipate profitability this year. Additionally, Alignment Healthcare suffers from weak gross profit margins, which stood at 10.65% for the last twelve months as of Q2 2024.
The company's financial health presents a mixed picture. While it operates with a moderate level of debt, it's trading at a high Price / Book multiple of 18.25. This valuation metric might raise questions about the stock's current pricing relative to its book value.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Alignment Healthcare, providing a deeper understanding of the company's financial position and market performance.
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