Alignment Healthcare (NASDAQ:ALHC) Downgraded by KeyCorp to Sector Weight

KeyCorp downgraded shares of Alignment Healthcare (NASDAQ:ALHC) from an overweight rating to a sector weight rating in a report issued on Friday, Marketbeat reports.

Other equities analysts also recently issued research reports about the stock. Scotiabank set a $9.00 price target on shares of Alignment Healthcare in a research note on Friday, October 9th. Zacks Research lowered shares of Alignment Healthcare from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Weiss Ratings cut shares of Alignment Healthcare from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, October 9th. TD Cowen dropped their price objective on Alignment Healthcare from $21.00 to $12.00 and set a “buy” rating for the company in a report on Monday, October 12th. Finally, UBS Group cut their target price on Alignment Healthcare from $22.00 to $9.00 and set a “neutral” rating on the stock in a research report on Monday, October 12th. Six equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $14.27.

Alignment Healthcare Trading Down 9.8%

Shares of ALHC stock opened at $7.27 on Friday. The firm has a market cap of $1.51 billion, a P/E ratio of 55.93 and a beta of 1.14. Alignment Healthcare has a 1-year low of $6.01 and a 1-year high of $25.12. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.70 and a quick ratio of 1.70. The firm’s 50-day simple moving average is $9.87 and its 200-day simple moving average is $16.82.

Alignment Healthcare (NASDAQ:ALHC) last released its earnings results on Thursday, October 29th. The company reported ($0.04) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.04). Alignment Healthcare had a net margin of 0.59% and a return on equity of 13.32%. The business had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.31 billion. During the same period last year, the company earned $0.02 earnings per share. The company’s quarterly revenue was up 36.7% on a year-over-year basis. As a group, equities analysts forecast that Alignment Healthcare will post 0.14 EPS for the current year.

Insider Activity at Alignment Healthcare

In other Alignment Healthcare news, CEO John E. Kao sold 27,400 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $13.00, for a total transaction of $356,200.00. Following the transaction, the chief executive officer directly owned 590,766 shares in the company, valued at $7,679,958. This represents a 4.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Joseph S. Konowiecki sold 23,511 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $8.61, for a total transaction of $202,429.71. Following the transaction, the executive vice president owned 1,080,305 shares in the company, valued at $9,301,426.05. This trade represents a 2.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 1,061,967 shares of company stock worth $13,642,490 in the last ninety days. 5.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Alignment Healthcare

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Oregon Public Employees Retirement Fund lifted its holdings in Alignment Healthcare by 11.7% during the 3rd quarter. Oregon Public Employees Retirement Fund now owns 41,900 shares of the company’s stock worth $342,000 after buying an additional 4,400 shares during the last quarter. Vise Technologies Inc. grew its position in shares of Alignment Healthcare by 31.2% in the 3rd quarter. Vise Technologies Inc. now owns 12,163 shares of the company’s stock worth $99,000 after acquiring an additional 2,894 shares in the last quarter. VestGen Advisors LLC bought a new stake in shares of Alignment Healthcare in the 3rd quarter valued at approximately $135,000. Park Avenue Securities LLC increased its holdings in shares of Alignment Healthcare by 37.2% in the 3rd quarter. Park Avenue Securities LLC now owns 59,635 shares of the company’s stock valued at $487,000 after acquiring an additional 16,157 shares during the last quarter. Finally, Sterling Capital Management LLC increased its holdings in shares of Alignment Healthcare by 839.9% in the 3rd quarter. Sterling Capital Management LLC now owns 6,739 shares of the company’s stock valued at $55,000 after acquiring an additional 6,022 shares during the last quarter. Institutional investors own 86.19% of the company’s stock.

Key Alignment Healthcare News

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

• Positive Sentiment: Alignment reported third-quarter revenue of $1.36 billion, up 36.7% year over year and above the $1.31 billion analyst estimate. Adjusted EPS of a $0.04 loss matched consensus. Alignment Healthcare Reports Third Quarter 2026 Results
• Positive Sentiment: Management is targeting at least 20% top-line growth in 2027, supporting the company’s longer-term expansion narrative. Alignment Targets 2027 Growth
• Neutral Sentiment: Barclays reduced its price target from $10 to $9 while maintaining an “equal weight” rating, implying potential upside but limited conviction. Barclays Rating
• Negative Sentiment: Alignment lowered its 2026 adjusted EBITDA outlook to at least $100 million, signaling weaker near-term profitability and helping offset the revenue beat. Alignment EBITDA Outlook
• Negative Sentiment: CMS reduced the 2027 Star Rating for Alignment’s California HMO contract H3815 from 4.0 to 3.5 stars. The contract serves approximately 75% of membership, raising concerns about bonus eligibility, enrollment and reimbursement economics. Alignment H3815 CMS Rating Concerns
• Negative Sentiment: KeyCorp downgraded ALHC from “overweight” to “sector weight,” while multiple law firms announced investigations into possible securities-law violations. These notices are allegations and do not establish wrongdoing, but they add reputational and legal overhang. Alignment Investigation Notice

About Alignment Healthcare

Alignment Healthcare, Inc is a technology-enabled health insurance company focused on providing Medicare Advantage plans for seniors. The company combines health plan coverage with care coordination and clinical services designed to help members manage chronic conditions, access providers and navigate the health care system.

Its offerings include Medicare Advantage plans, supplemental benefits and member support services. Alignment also uses its proprietary technology platform, including the Alignment Virtual Application (AVA), to support care teams, analyze health information and help deliver more personalized services to members.

Founded in 2013, Alignment Healthcare serves Medicare-eligible consumers in selected markets, including California, Florida, Nevada and North Carolina.