Alignment Healthcare, Inc.'s (NASDAQ:ALHC) Chief Financial Officer, Robert Thomas Freeman, recently sold shares of the company's common stock, according to a new SEC filing. The transaction, which took place on March 28, involved the sale of 4,299 shares at an average price of $4.84, amounting to a total value of over $20,000.
The filing notes that the shares sold ranged in price from $4.73 to $4.935, indicating that the sale was executed in multiple transactions at varying prices. The shares were sold to cover tax withholding obligations due to the vesting of restricted stock units. It is important to note that this sale was not a discretionary trade by Freeman.
Following the transaction, Freeman still holds a substantial number of shares in Alignment Healthcare. The remaining direct holdings amount to 865,407 shares. Additionally, the filing includes a footnote indicating that Freeman has an indirect interest in 519,429 shares held by FCO Holdings LLC, which is owned by FCO Holdings Trust One, an irrevocable trust of which Freeman is an indirect beneficiary.
Investors keeping track of insider transactions may view this sale as a routine financial move, considering the obligations that triggered the sale. As the CFO of Alignment Healthcare, Freeman's transactions are closely watched for insights into the financial health and prospects of the company.
The sale was reported in a Form 4 filing with the Securities and Exchange Commission, which was signed on Freeman's behalf by Christopher J. Joyce, as Attorney-in-Fact, on March 29.
InvestingPro Insights
As investors digest the recent insider transaction at Alignment Healthcare, Inc. (NASDAQ:ALHC), it's critical to consider the broader financial landscape of the company. According to InvestingPro data, Alignment Healthcare holds a market capitalization of $937.33 million USD. Despite a challenging period, the company has managed to achieve a robust revenue growth of 27.16% over the last twelve months as of Q4 2023. This is further reflected in the quarterly revenue growth figure of 28.63% for Q4 2023.
However, the company's profitability remains under scrutiny. The P/E Ratio stands at -6.25, with an adjusted figure of -6.39 for the last twelve months as of Q4 2023, suggesting that investors are valuing the company's earnings negatively. This aligns with one of the InvestingPro Tips indicating that analysts do not expect the company to be profitable this year. Additionally, the stock has experienced a significant downturn, with a 3-month price total return of -42.39% as of the 90th day of 2024.
For those considering a deeper analysis, there are 9 additional InvestingPro Tips available at InvestingPro, which provide insights into Alignment Healthcare's financial metrics and stock performance. For instance, the company holds more cash than debt on its balance sheet, and it is trading at a low revenue valuation multiple. These metrics may offer a silver lining for investors looking for potential value in the healthcare sector.
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