Breaking Down Alight: 4 Analysts Share Their Views

Across the recent three months, 4 analysts have shared their insights on Alight ALIT, expressing a variety of opinions spanning 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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $9.5, along with a high estimate of $11.00 and a low estimate of $9.00. Observing a downward trend, the current average is 5.0% lower than the prior average price target of $10.00.

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of Alight by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Alight. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alight compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Alight's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Alight's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Alight analyst ratings.

Get to Know Alight Better

Alight Inc is a technology-enabled services company delivering human capital management solutions to many of complex organizations. This includes the implementation and administration of employee benefits (e.g., health, wealth and leaves benefits) solutions, currently operates under one reportable segment, Employer Solutions. The Company completed the Divestiture of Alight's Professional Services segment and Alight's Payroll & HCM Outsourcing business within the Employer Solutions segment. The company operates in USA states and International market too.

Breaking Down Alight's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Alight's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -0.29% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Alight's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 1.18%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Alight's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.19%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Alight's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.1%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Alight's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.5.

What Are Analyst Ratings?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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