Alignment Healthcare (ALHC) stock soared on Tuesday after the Medicare Advantage company revealed insider buying in a filing with the U.S. Securities and Exchange Commission (SEC). Chief Financial Officer James Head agreed to buy 12,000 shares of ALHC stock today, bringing his total outstanding shares to 204,296,493.
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Alignment Healthcare noted that the aggregate market value of the shares bought by the CFO was $224,040. With 12,000 shares bought, this represents an average purchase price of $18.67 per share for ALHC stock. This matched the stock’s closing price on Monday.
It makes sense that ALHC stock would rally alongside today’s insider buying news. Investors often see insider buying as a sign of confidence in a company. With Head’s purchase today, he has likely raised the morale of shareholders and possibly encourages other investors to increase their stakes in the company.
Alignment Healthcare Stock Movement Today
Alignment Healthcare stock was up 10.61% in pre-market trading on Tuesday, following a slight dip yesterday. The stock has also fallen 5.47% year-to-date and 1.48% over the past 12 months.
Despite today’s news, shares of ALHC stock experienced muted trading activity. As of this writing, more than 52,000 shares changed hands, which is below the stock’s three-month average daily trading volume of about 3.19 million shares.
Is Alignment Healthcare Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Alignment Healthcare is Strong Buy, based on six Buy and two Hold ratings over the past three months. With that comes an average ALHC stock price target of $25.14, representing a potential 34.65% upside for the shares.
