Robert Thomas Freeman, Chief Financial Officer of Alignment Healthcare, Inc. (NASDAQ:ALHC), recently sold 30,500 shares of the company's common stock. The shares were sold at an average price of $13.4215, totaling approximately $409,355. Following this transaction, Freeman holds 92,929 shares indirectly and 865,407 shares directly. The sale was conducted under a pre-established Rule 10b5-1 trading plan, adopted on March 15, 2024, as per the filing.
In other recent news, Alignment Healthcare has been a subject of significant attention following its robust Q3 growth. The company reported a 52% increase in total revenue, reaching $692 million, and a 58% increase in health plan membership. The company's adjusted EBITDA turned positive at $6 million, marking its second consecutive quarter of profitability.
In light of these developments, TD Cowen has raised Alignment Healthcare's target price to $13, maintaining a Buy rating on the company's stock. This decision was influenced by the company's successful execution of its strategic plan and its trajectory towards profitability.
Additionally, Alignment Healthcare's management projects at least 20% growth in 2025, with an expected adjusted EBITDA of approximately $40 million. This outlook, combined with the company's recent performance, has reinforced TD Cowen's confidence in Alignment Healthcare's market position and potential to deliver value to shareholders. These recent developments underscore the company's promising financial performance and growth potential in the coming years.
InvestingPro Insights
As Alignment Healthcare's CFO Robert Thomas Freeman reduces his stake, investors might be curious about the company's financial health and market performance. According to InvestingPro data, Alignment Healthcare has shown impressive growth with a revenue increase of 43.47% over the last twelve months, reaching $2.47 billion. This strong top-line expansion is further emphasized by a remarkable 51.61% quarterly revenue growth in Q3 2024.
Despite the robust revenue growth, InvestingPro Tips highlight that Alignment Healthcare is not currently profitable, with analysts not anticipating profitability this year. The company's P/E ratio stands at -17.1, reflecting its current loss-making status. However, it's worth noting that Alignment Healthcare operates with a moderate level of debt, which could provide some financial flexibility as it pursues growth.
The market seems to be optimistic about Alignment Healthcare's prospects, as evidenced by the stock's strong performance. InvestingPro data shows a substantial 116.8% price return over the past year, with an impressive 90.17% gain in the last six months alone. This positive momentum is reflected in the stock trading at 89.68% of its 52-week high.
For investors considering Alignment Healthcare, it's important to note that the company does not pay a dividend, focusing instead on growth. The stock's Price to Book ratio of 21.39 suggests a premium valuation, which may be justified by the company's strong revenue growth but also indicates higher expectations from the market.
These insights are just a glimpse of what InvestingPro offers. There are 11 additional InvestingPro Tips available for Alignment Healthcare, providing a more comprehensive analysis for investors looking to delve deeper into the company's prospects.
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