Demystifying Alignment Healthcare: Insights From 4 Analyst Reviews

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Alignment Healthcare ALHC in the last three months.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Alignment Healthcare and provided 12-month price targets. The average target is $7.0, accompanied by a high estimate of $9.00 and a low estimate of $4.50. A negative shift in sentiment is evident as analysts have decreased the average price target by 34.4%.

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Alignment Healthcare. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Alignment Healthcare. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alignment Healthcare compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Alignment Healthcare's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Get to Know Alignment Healthcare Better

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 customers receive healthcare coverage and services on an annual basis. The company combines a technology platform and clinical model for more effective health outcomes.

Alignment Healthcare: Financial Performance Dissected

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Alignment Healthcare's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 28.63%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Alignment Healthcare's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -10.14%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Alignment Healthcare's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -27.33%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Alignment Healthcare's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -6.93%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Alignment Healthcare's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.09, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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