Assessing Alignment Healthcare: Insights From 4 Financial Analysts

4 analysts have shared their evaluations of Alignment Healthcare ALHC during the recent three months, expressing a mix of bullish and bearish perspectives.

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.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $8.81, a high estimate of $10.00, and a low estimate of $7.25. This upward trend is evident, with the current average reflecting a 13.68% increase from the previous average price target of $7.75.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive Alignment Healthcare is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Alignment Healthcare. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alignment Healthcare compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Alignment Healthcare's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Alignment Healthcare's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

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About Alignment Healthcare

Alignment Healthcare Inc is a next-generation, consumer-centric platform that is revolutionizing the healthcare experience for seniors through Medicare Advantage plans. These plans are marketed and sold direct-to-consumer, allowing seniors to select the manner in which they receive healthcare coverage and services on an annual basis.

A Deep Dive into Alignment Healthcare's Financials

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.

Revenue Growth: Alignment Healthcare's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 26.74%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Alignment Healthcare's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -7.67%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Alignment Healthcare's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -17.59%, 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 -4.51%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Alignment Healthcare's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.91, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.

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