Robert Thomas Freeman, the Chief Financial Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), recently sold shares of the company, according to a filing with the Securities and Exchange Commission. On October 29 and October 31, Freeman sold a total of 40,680 shares. These transactions were executed at a weighted-average price range of $12.00 to $12.24 per share, amounting to a total value of approximately $489,838.
Following these transactions, Freeman holds 123,429 shares indirectly through FCO Holdings LLC, a limited liability company owned by FCO Holdings Trust One, of which he is an indirect beneficiary. Additionally, Freeman retains direct ownership of 865,407 shares of Alignment Healthcare.
These sales were conducted under a pre-arranged trading plan adopted on March 15, 2024, in accordance with Rule 10b5-1.
In other recent news, Alignment Healthcare reported robust growth in its third-quarter results for 2024, with a 58% increase in health plan membership and a 52% increase in total revenue, reaching $692 million. The company's adjusted EBITDA turned positive at $6 million, marking the second consecutive quarter of profitability. Following these results, financial services firm TD Cowen revised its price target for the healthcare company to $13, maintaining a Buy rating on the stock.
These recent developments reflect the effective execution of Alignment Healthcare's strategic plan, which is expected to guide the company towards an adjusted EBITDA of over $40 million by 2025. The company also anticipates a minimum of 20% growth in Medicare Advantage membership.
The new price target from TD Cowen, based on a 0.8x 2025 enterprise value/revenue multiple, indicates a positive outlook on Alignment Healthcare's financial performance and growth potential. The company's recent performance and forward-looking financial goals have reinforced TD Cowen's Buy rating, signaling confidence in Alignment Healthcare's market position and its ability to deliver value to shareholders.
This news follows the company's third-quarter financial results, which surpassed consensus estimates in terms of revenue, gross profit, and adjusted EBITDA.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Alignment Healthcare's financial position and market performance. The company's market capitalization stands at $2.37 billion, reflecting its significant presence in the healthcare sector. Notably, Alignment Healthcare has demonstrated impressive revenue growth, with a 43.47% increase in the last twelve months as of Q3 2024, and an even more substantial 51.61% quarterly growth in Q3 2024.
This robust revenue expansion aligns with the company's strong market performance. InvestingPro data reveals that Alignment Healthcare has seen a remarkable 140.58% price total return over the past six months, and an 80.09% return over the last year. The stock is currently trading near its 52-week high, with the price at 99.68% of its peak.
However, investors should note that despite the strong top-line growth, Alignment Healthcare faces profitability challenges. An InvestingPro Tip highlights that the company is not expected to be profitable this year, which is consistent with its reported operating income of -$119.8 million in the last twelve months.
Another InvestingPro Tip points out that Alignment Healthcare operates with a moderate level of debt, which could be a factor in the CFO's recent stock sales. This financial structure may provide the company with flexibility for growth but also requires careful management.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for Alignment Healthcare, providing a deeper understanding of the company's financial health and market position.
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