Alignment Stock Buy Hold or Sell Recommendation

ALHC
 Stock
  

USD 12.15  0.20  1.62%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Alignment Healthcare is 'Strong Buy'. Macroaxis provides Alignment Healthcare buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ALHC positions. The advice algorithm takes into account all of Alignment Healthcare's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Alignment Healthcare's buy-and-hold perspective. Please continue to Alignment Healthcare Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Alignment and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Alignment Healthcare.

Execute Alignment Healthcare Buy or Sell Advice

The Alignment recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Alignment Healthcare. Macroaxis does not own or have any residual interests in Alignment Healthcare or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Alignment Healthcare's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Alignment HealthcareBuy Alignment Healthcare
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

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Analyst Consensus

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Reporting Quality (M-Score)

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For the selected time horizon Alignment Healthcare has a Risk Adjusted Performance of 0.0724, Jensen Alpha of 0.3221, Total Risk Alpha of 0.5766, Sortino Ratio of 0.0642 and Treynor Ratio of 0.2453
Our trade advice tool can cross-verify current analyst consensus on Alignment Healthcare and to analyze the company potential to grow in the current economic cycle. To make sure Alignment Healthcare is not overpriced, please confirm all Alignment Healthcare fundamentals, including its gross profit, debt to equity, and the relationship between the price to book and cash and equivalents . Given that Alignment Healthcare has a shares owned by institutions of 85.73 %, we suggest you to validate Alignment Healthcare market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Alignment Healthcare Trading Alerts and Improvement Suggestions

Alignment Healthcare has very high historical volatility over the last 90 days
The company reported the previous year's revenue of 1.25 B. Net Loss for the year was (179.23 M) with profit before overhead, payroll, taxes, and interest of 128.73 M.
Alignment Healthcare currently holds about 448.84 M in cash with (52.31 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.4.
Over 86.0% of the company shares are held by institutions such as insurance companies
Latest headline from simplywall.st: Tabula Rasa HealthCare, Inc.s latest 15 percent decline adds to one-year losses, institutional investors may consider drastic measures - Simply Wall St

Alignment Healthcare current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Alignment analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Alignment analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price15.70
Target Median Price14.50
Target High Price20.00
Recommendation Mean1.80
Number Of Analyst Opinions10
Target Low Price11.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Alignment Healthcare Returns Distribution Density

The distribution of Alignment Healthcare's historical returns is an attempt to chart the uncertainty of Alignment Healthcare's future price movements. The chart of the probability distribution of Alignment Healthcare stock daily returns describes the distribution of returns around its average expected value. We use Alignment Healthcare price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Alignment Healthcare returns is essential to provide solid investment advice for Alignment Healthcare.
Mean Return0.25Value At Risk-4.79
Potential Upside6.73Standard Deviation4.24
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Alignment Healthcare historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Alignment Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Alignment Healthcare is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Alignment Healthcare backward and forwards among themselves. Alignment Healthcare's institutional investor refers to the entity that pools money to purchase Alignment Healthcare's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
General Atlantic LpCommon Shares70.1 M799.5 M
Warburg Pincus LlcCommon Shares22.8 M259.8 M
Fmr LlcCommon Shares16.8 M192.1 M
Price T Rowe Associates IncCommon Shares8.8 M100.5 M
Durable Capital Partners LpCommon Shares6.6 M75.6 M
Vanguard Group IncCommon Shares6.5 M74.1 M
Blackrock IncCommon Shares4.7 M53.4 M
Note, although Alignment Healthcare's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Alignment Healthcare Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Alignment Healthcare or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Alignment Healthcare's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Alignment stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.32
β
Beta against DOW0.96
σ
Overall volatility
4.32
Ir
Information ratio 0.08

Alignment Healthcare Volatility Alert

Alignment Healthcare exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Alignment Healthcare individually to make sure intended market timing strategies and available technical indicators are consistent with their estimates about Alignment Healthcare future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alignment Healthcare's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alignment Healthcare's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Alignment Healthcare Fundamentals Vs Peers

Comparing Alignment Healthcare's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Alignment Healthcare's direct or indirect competition across all of the common fundamentals between Alignment Healthcare and the related equities. This way, we can detect undervalued stocks with similar characteristics as Alignment Healthcare or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Alignment Healthcare's fundamental indicators could also be used in its relative valuation, which is a method of valuing Alignment Healthcare by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Alignment Healthcare to competition
FundamentalsAlignment HealthcarePeer Average
Return On Equity(55.36) %(0.31) %
Return On Asset(15.26) %(0.14) %
Profit Margin(14.38) %(1.27) %
Operating Margin(12.99) %(5.51) %
Current Valuation2.46 B16.62 B
Shares Outstanding187.24 M571.82 M
Shares Owned by Insiders6.40 %10.09 %
Shares Owned by Institutions85.73 %39.21 %
Number of Shares Shorted2.78 M4.71 M
Price to Book6.85 X9.51 X
Price to Sales1.79 X11.42 X
Revenue1.25 B9.43 B
Gross Profit128.73 M27.38 B
EBITDA(145.65 M)3.9 B
Net Income(179.23 M)570.98 M
Cash and Equivalents448.84 M2.7 B
Cash per Share2.40 X5.01 X
Total Debt158.36 M5.32 B
Debt to Equity0.54 %48.70 %
Current Ratio2.90 X2.16 X
Book Value Per Share1.74 X1.93 K
Cash Flow from Operations(52.31 M)971.22 M
Short Ratio5.75 X4.00 X
Earnings Per Share(10.95) X3.12 X
Price to Earnings To Growth0.37 X4.89 X
Number of Employees84718.84 K
Market Capitalization2.23 B19.03 B
Z Score8.48.72
   Sale by General Atlantic Aln Hlth Lp of 6955994 shares of Alignment Healthcare [view details]

About Alignment Healthcare Buy or Sell Advice

When is the right time to buy or sell Alignment Healthcare? Buying financial instruments such as Alignment Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Alignment Healthcare in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long Short Theme or any other thematic opportunities.
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Please continue to Alignment Healthcare Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Alignment Healthcare information on this page should be used as a complementary analysis to other Alignment Healthcare's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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Is Alignment Healthcare's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alignment Healthcare. If investors know Alignment will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alignment Healthcare listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Alignment Healthcare is measured differently than its book value, which is the value of Alignment that is recorded on the company's balance sheet. Investors also form their own opinion of Alignment Healthcare's value that differs from its market value or its book value, called intrinsic value, which is Alignment Healthcare's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alignment Healthcare's market value can be influenced by many factors that don't directly affect Alignment Healthcare's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Alignment Healthcare's value and its price as these two are different measures arrived at by different means. Investors typically determine Alignment Healthcare value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alignment Healthcare's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.