Alignment Healthcare president sells $340,560 in stock

Dawn Christine Maroney, President of Markets at Alignment Healthcare, Inc. (NASDAQ:ALHC), recently sold 30,000 shares of the company's common stock. The transactions occurred on November 15, 2024, at a weighted-average price of $11.352 per share, amounting to a total sale value of $340,560. Following the sale, Maroney retains ownership of 1,696,097 shares in the company. The sales were executed under a pre-arranged Rule 10b5-1 trading plan, adopted on March 13, 2024, allowing for systematic stock transactions over a set period.

In other recent news, Alignment Healthcare has been making significant strides in the healthcare industry. The company's robust third-quarter results for 2024 showcased a 58% increase in health plan membership and a 52% surge in total revenue, which amounted to $692 million. Notably, this marks the second consecutive quarter of profitability with an adjusted EBITDA of $6 million.

On the heels of these strong financial results, financial services firm TD Cowen has raised its price target for Alignment Healthcare from $10.00 to $13.00, while maintaining a Buy rating on the company's stock. This revised target reflects the firm's positive outlook on Alignment Healthcare's financial performance and growth potential in the forthcoming years.

Moreover, the company's management is confident about achieving an adjusted EBITDA of over $40 million by 2025, along with a minimum of 20% growth in Medicare Advantage membership. These projections have played a significant role in TD Cowen's decision to revise the price target upward.

In addition to these developments, the company has reported a membership growth to 182,300, surpassing year-end guidance. The company's star ratings and operational efficiencies are expected to sustain growth and margin improvements into 2025. These recent developments underscore Alignment Healthcare's strong market position and potential to deliver value to its shareholders.

InvestingPro Insights

As Dawn Christine Maroney's recent stock sale raises questions about Alignment Healthcare's current position, a closer look at InvestingPro data provides additional context. The company's market capitalization stands at $2.2 billion, reflecting its significant presence in the healthcare sector. Despite the recent insider sale, Alignment Healthcare has demonstrated impressive revenue growth, with a 43.47% increase over the last twelve months as of Q3 2024, reaching $2.47 billion.

However, the company faces profitability challenges. An InvestingPro Tip highlights that Alignment Healthcare is not expected to be profitable this year, which aligns with the reported operating income of -$119.8 million over the last twelve months. This financial performance is reflected in the company's negative P/E ratio of -15.4.

On a more positive note, Alignment Healthcare has shown strong market performance. An InvestingPro Tip indicates a substantial price uptick over the last six months, which is corroborated by the impressive 64.31% price total return over the same period. This positive trend extends to the one-year horizon, with a remarkable 73.88% price total return.

For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Alignment Healthcare, providing a deeper understanding of the company's financial health and market position.

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