Alignment Healthcare (NASDAQ:ALHC) Shares Gap Down – Here’s Why

Alignment Healthcare, Inc. (NASDAQ:ALHC)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $20.42, but opened at $18.84. Alignment Healthcare shares last traded at $20.0470, with a volume of 950,841 shares changing hands.

Alignment Healthcare News Summary

Here are the key news stories impacting Alignment Healthcare this week:

• Positive Sentiment: Q4 results beat expectations: revenue of ~$1.01B (vs. ~$1.00B est.) and EPS of ($0.05) vs. consensus ($0.15) loss; revenue grew ~44% year-over-year — a clear near-term operational beat. Zacks: Q4 Loss, Beats Revenue Estimates
• Positive Sentiment: Company says Q4 delivered record revenue and membership and that it beat the high end of guidance across key metrics — supporting growth narrative for Medicare-focused membership expansion. Yahoo Finance: Q4 Highlights
• Neutral Sentiment: Analyst and press write-ups emphasize strong top-line momentum but recommend watching profitability trajectory and margin pressures as membership scales. Earnings Snapshot
• Neutral Sentiment: Public short-interest data reported around these dates appears inconsistent (zeros and NaN values), so short-interest signals are unreliable for interpreting today’s move.
• Negative Sentiment: Forward guidance disappointed relative to Street expectations: Q1 revenue guidance was presented below consensus (~$1.2B vs. ~$1.3B consensus) and FY2026 revenue guidance was set roughly in line-to-slightly below consensus ($5.1B–$5.2B vs. ~$5.2B est.), which likely triggered profit-taking despite the quarter’s beats. GlobeNewswire: Q4 & FY Results
• Negative Sentiment: Company remains unprofitable (negative net margin and ROE; EPS still a loss), so valuation sensitivity is high — investors often punish growth names that don’t show a clear path to sustained profitability. MarketBeat: Earnings Summary

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on ALHC shares. UBS Group raised their target price on shares of Alignment Healthcare from $18.00 to $21.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Alignment Healthcare in a research report on Wednesday, January 21st. JPMorgan Chase & Co. increased their target price on Alignment Healthcare from $23.00 to $26.00 and gave the stock an “overweight” rating in a research note on Thursday, February 5th. KeyCorp restated an “overweight” rating and issued a $28.00 price target on shares of Alignment Healthcare in a research note on Thursday, January 22nd. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and issued a $22.00 price objective on shares of Alignment Healthcare in a report on Monday, November 3rd. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Alignment Healthcare currently has a consensus rating of “Moderate Buy” and an average price target of $23.95.

Alignment Healthcare Stock Performance

The company has a debt-to-equity ratio of 1.99, a quick ratio of 1.61 and a current ratio of 1.61. The company has a market cap of $3.94 billion, a P/E ratio of -164.05, a P/E/G ratio of 5.13 and a beta of 1.16. The stock’s fifty day moving average price is $21.01 and its two-hundred day moving average price is $18.48.

Alignment Healthcare (NASDAQ:ALHC) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.10. Alignment Healthcare had a negative net margin of 0.57% and a negative return on equity of 16.23%. The business had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $1 billion. During the same period last year, the firm posted ($0.16) earnings per share. The firm’s quarterly revenue was up 44.4% compared to the same quarter last year. As a group, equities analysts predict that Alignment Healthcare, Inc. will post -0.69 earnings per share for the current year.

Insider Transactions at Alignment Healthcare

In other Alignment Healthcare news, CEO John E. Kao sold 605,648 shares of Alignment Healthcare stock in a transaction dated Monday, December 29th. The stock was sold at an average price of $18.74, for a total value of $11,349,843.52. Following the transaction, the chief executive officer owned 2,234,294 shares in the company, valued at $41,870,669.56. The trade was a 21.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, President Dawn Christine Maroney sold 282,070 shares of the stock in a transaction dated Monday, December 29th. The stock was sold at an average price of $18.74, for a total transaction of $5,285,991.80. Following the completion of the transaction, the president directly owned 1,385,167 shares of the company’s stock, valued at $25,958,029.58. This trade represents a 16.92% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 2,125,938 shares of company stock valued at $41,799,570. Corporate insiders own 7.00% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Summit Securities Group LLC bought a new position in Alignment Healthcare in the 4th quarter valued at approximately $26,000. Parallel Advisors LLC increased its holdings in Alignment Healthcare by 87.7% in the fourth quarter. Parallel Advisors LLC now owns 1,654 shares of the company’s stock worth $33,000 after purchasing an additional 773 shares in the last quarter. Larson Financial Group LLC acquired a new position in Alignment Healthcare in the third quarter valued at approximately $33,000. First Horizon Corp bought a new position in shares of Alignment Healthcare during the 4th quarter worth approximately $39,000. Finally, SBI Securities Co. Ltd. grew its position in shares of Alignment Healthcare by 4,868.9% during the 2nd quarter. SBI Securities Co. Ltd. now owns 3,031 shares of the company’s stock worth $42,000 after buying an additional 2,970 shares during the period. 86.19% of the stock is currently owned by institutional investors.

Alignment Healthcare Company Profile

Alignment Healthcare, Inc (NASDAQ: ALHC) is a health care company specializing in value-based care for Medicare Advantage beneficiaries. The company leverages an integrated care model that combines in-home clinical services, telehealth capabilities and digital health tools to manage chronic conditions, improve outcomes and enhance patient experience.

At the core of Alignment Healthcare’s approach is a proprietary technology platform that aggregates real-time clinical and claims data to support preventive care, risk stratification and personalized care plans.