ALHC Should I Buy
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Alignment Healthcare Inc (ALHC) is not a strong buy for a beginner investor with a long-term focus at this time. The stock shows mixed signals with declining price trends, weak financial performance in the latest quarter, and significant hedge fund selling. While analysts are optimistic with raised price targets and positive ratings, the lack of strong technical or proprietary trading signals and the absence of recent positive news or catalysts suggest waiting for a better entry point.
The stock is showing a negative price trend with a -1.67% regular market change and pre-market decline of -0.69%. The MACD is negative and expanding downward (-0.38), RSI is at 26.165 (neutral zone but close to oversold), and moving averages are converging. Key support is at $20.223, with resistance at $22.859. The stock is trading near support levels, but no clear reversal signals are present.
Analysts have consistently raised price targets, with the most recent targets ranging from $25 to $30, reflecting optimism about the company's growth potential in the Medicare Advantage market. Gross margin increased by 13.85% YoY in Q3 2025, and revenue grew by 43.51% YoY.
Hedge funds are aggressively selling, with a 1606.19% increase in selling activity over the last quarter. Net income and EPS dropped significantly YoY (-114.12% and -114.29%, respectively). The MACD and RSI indicate a bearish trend, and the stock has a 40% chance of further decline in the short term. No recent news or congress trading data provides additional support.
In Q3 2025, revenue increased by 43.51% YoY to $993.7M, but net income dropped by -114.12% YoY to $3.73M. EPS also declined by -114.29% YoY to $0.02. Gross margin improved by 13.85% YoY to 11.84%, but overall profitability remains weak.
Analysts are bullish, with multiple firms raising price targets recently. JPMorgan, Baird, KeyBanc, TD Cowen, and Piper Sandler have all issued Overweight or Buy ratings, with price targets ranging from $25 to $30. Analysts see strong growth potential in the Medicare Advantage market and believe the company is well-positioned for long-term success.
