A Glimpse Into The Expert Outlook On Alight Through 6 Analysts

In the last three months, 6 analysts have published ratings on Alight ALIT, offering a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Alight and provided 12-month price targets. The average target is $9.5, accompanied by a high estimate of $11.00 and a low estimate of $8.00. This current average has decreased by 13.64% from the previous average price target of $11.00.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Alight by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Alight. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Alight compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Alight's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Alight's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Alight analyst ratings.

Delving into Alight's Background

Alight Inc is a provider of integrated, cloud-based human capital solutions that empower clients and employees to manage health, wealth and HR needs. Geographically, the company generates a majority of its revenue from the United States.

Financial Milestones: Alight's Journey

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Alight faced challenges, resulting in a decline of approximately -4.1% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Alight's net margin is impressive, surpassing industry averages. With a net margin of 4.28%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Alight's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.51%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.22%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Alight's debt-to-equity ratio is below the industry average at 0.65, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.