Alight Shareholders Under Pressure as Analyst Cuts Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy ALIT?
Source: Fool
- Stock Price Decline: Alight's stock fell by 5% during Monday's trading, reflecting investor disappointment following a poor earnings report, which further reduced its market cap to $394 million and indicates a pessimistic outlook on its future performance.
- Analyst Price Target Cut: Bank of America's analyst Curtis Nagle drastically lowered Alight's fair value assessment from $1.40 to $0.50 per share while maintaining an underperform rating, signaling serious concerns about the company's future revenue growth.
- Revenue Retention Issues: Nagle highlighted that Alight's significant miss on first-quarter revenue guidance suggests major challenges in revenue retention, which is particularly alarming in an environment where recurring revenue is generally stable.
- Gloomy CEO Outlook: New CEO Rohit Verma expressed a pessimistic view during the earnings call regarding 2025, suggesting that the company's struggles might extend into 2026, indicating that investors need to see clear signs of improvement to regain confidence.
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Analyst Views on ALIT
Wall Street analysts forecast ALIT stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 0.719
Low
2.50
Averages
3.67
High
5.00
Current: 0.719
Low
2.50
Averages
3.67
High
5.00
About ALIT
Alight, Inc. is a cloud-based human capital technology and services provider. It is engaged in delivering human capital management solutions to various organizations. This includes the implementation and administration of employee benefits (health, wealth, and leaves benefits) solutions. It allows participants to access their solutions digitally, including through a mobile application on Alight Worklife, its intuitive, cloud-based employee engagement platform. Through Alight Worklife, the Company provides an enterprise level, integrated offering designed to drive better outcomes for organizations and individuals. Its primary business, Employer Solutions, is driven by its Alight Worklife platform, and includes integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management and retiree healthcare. The Company also has Sword Health, which is an AI care platform that delivers clinical-grade care across various health conditions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alight Shareholders Under Pressure as Analyst Cuts Price Target
- Stock Price Decline: Alight's stock fell by 5% during Monday's trading, reflecting investor disappointment following a poor earnings report, which further reduced its market cap to $394 million and indicates a pessimistic outlook on its future performance.
- Analyst Price Target Cut: Bank of America's analyst Curtis Nagle drastically lowered Alight's fair value assessment from $1.40 to $0.50 per share while maintaining an underperform rating, signaling serious concerns about the company's future revenue growth.
- Revenue Retention Issues: Nagle highlighted that Alight's significant miss on first-quarter revenue guidance suggests major challenges in revenue retention, which is particularly alarming in an environment where recurring revenue is generally stable.
- Gloomy CEO Outlook: New CEO Rohit Verma expressed a pessimistic view during the earnings call regarding 2025, suggesting that the company's struggles might extend into 2026, indicating that investors need to see clear signs of improvement to regain confidence.
See More
Analyst Cuts Alight Price Target to $0.50 Amid Revenue Concerns
- Significant Price Target Cut: Bank of America analyst Curtis Nagle slashed Alight's price target from $1.40 to $0.50, reflecting a pessimistic outlook on the company's future performance, which directly impacts shareholder confidence and led to a 5% drop in stock price during Monday's trading session.
- Disappointing Revenue Guidance: Alight's recent earnings report failed to meet first-quarter revenue guidance, with analysts noting this indicates a significant decline in revenue retention, particularly concerning in a market where recurring revenue is generally stable.
- Management Confidence Issues: Newly appointed CEO Rohit Verma's push for operational excellence has not instilled confidence in the market, as evidenced by the negative investor reaction to the earnings report, which may hinder the company's ability to attract investors moving forward.
- Bleak Outlook: Verma's comments during the earnings call suggested that challenges in 2025 might extend into 2026, leading analysts to believe that the company must quickly demonstrate signs of improvement to regain investor confidence, or it risks facing further market sell-off pressure.
See More
Alight Reports Disappointing Q4 Earnings with Revenue and Profit Declines
- Revenue Decline: Alight's Q4 revenue fell 4% year-over-year to $653 million, missing analyst expectations of $654.6 million, indicating significant pressure in a competitive market.
- Net Income Drop: Non-GAAP net income plummeted 24% to $96 million, or $0.18 per share, falling short of the $0.24 expected by analysts, reflecting a notable deterioration in profitability.
- Reduced Project Revenue: The company attributed the revenue decline to decreased project revenue and a drop in commercial activity, suggesting that weak market demand could impact future performance.
- Cautious Management Outlook: While CEO Rohit Verma emphasized plans for sustainable growth, he admitted that the weakness experienced in 2025 would spill into 2026, indicating potential challenges for shareholders in the coming months.
See More
Alight Shares Plunge 42% Following Disappointing Earnings Report
- Disappointing Earnings: Alight's Q4 2025 revenue fell 4% year-over-year to $653 million, failing to meet analyst expectations of $654.6 million, indicating a weakening competitive position in the market.
- Significant Profit Decline: Non-GAAP net income plummeted 24% to $96 million, or $0.18 per share, significantly below the expected $0.24, reflecting a sharp decline in profitability.
- Reduced Project Revenue: The company attributed the revenue drop to decreased project revenue and declining commercial activity, while increased compensation expenses further pressured net income, signaling financial challenges ahead.
- Management's Pessimistic Outlook: Although CEO Rohit Verma expressed commitment to sustainable growth in the earnings release, he admitted that the weakness from 2025 would carry into 2026, suggesting shareholders may face more difficulties in the coming months.
See More
ALIGHT INC: CITIGROUP Downgrades to Neutral from Buy; Lowers Target Price to $1 from $6.5
- Citigroup's Stock Rating Change: Citigroup has downgraded its rating on StoneCo, moving from a "buy" to a "neutral" stance.
- Target Price Adjustment: The target price for StoneCo's stock has been significantly reduced from $6.50 to $1.00.
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U.S. Stocks Close Lower, Dow Jones Falls Over 300 Points
- Market Performance: U.S. stocks closed lower on Thursday, with the Dow Jones index dropping over 300 points, a decline of 0.64% to 49,346.38, indicating investor concerns about the economic outlook.
- Walmart Earnings: Walmart reported upbeat fourth-quarter results with adjusted earnings per share of 74 cents, exceeding the expected 73 cents, but its fiscal 2027 outlook fell short, projecting earnings between $2.75 and $2.85, below the consensus estimate of $2.96.
- Sales Growth: Walmart's sales reached $190.70 billion, a 5.6% year-over-year increase, surpassing the analyst consensus of $190.43 billion, demonstrating the company's strong performance in the retail market.
- Energy Stocks Rise: Despite the overall market decline, energy stocks gained 1.1%, reflecting investor confidence in the sector, likely driven by oil prices rising 2.1% to $66.53.
See More
Alight Shareholders Under Pressure as Analyst Cuts Price Target
- Stock Price Decline: Alight's stock fell by 5% during Monday's trading, reflecting investor disappointment following a poor earnings report, which further reduced its market cap to $394 million and indicates a pessimistic outlook on its future performance.
- Analyst Price Target Cut: Bank of America's analyst Curtis Nagle drastically lowered Alight's fair value assessment from $1.40 to $0.50 per share while maintaining an underperform rating, signaling serious concerns about the company's future revenue growth.
- Revenue Retention Issues: Nagle highlighted that Alight's significant miss on first-quarter revenue guidance suggests major challenges in revenue retention, which is particularly alarming in an environment where recurring revenue is generally stable.
- Gloomy CEO Outlook: New CEO Rohit Verma expressed a pessimistic view during the earnings call regarding 2025, suggesting that the company's struggles might extend into 2026, indicating that investors need to see clear signs of improvement to regain confidence.
See More
Analyst Cuts Alight Price Target to $0.50 Amid Revenue Concerns
- Significant Price Target Cut: Bank of America analyst Curtis Nagle slashed Alight's price target from $1.40 to $0.50, reflecting a pessimistic outlook on the company's future performance, which directly impacts shareholder confidence and led to a 5% drop in stock price during Monday's trading session.
- Disappointing Revenue Guidance: Alight's recent earnings report failed to meet first-quarter revenue guidance, with analysts noting this indicates a significant decline in revenue retention, particularly concerning in a market where recurring revenue is generally stable.
- Management Confidence Issues: Newly appointed CEO Rohit Verma's push for operational excellence has not instilled confidence in the market, as evidenced by the negative investor reaction to the earnings report, which may hinder the company's ability to attract investors moving forward.
- Bleak Outlook: Verma's comments during the earnings call suggested that challenges in 2025 might extend into 2026, leading analysts to believe that the company must quickly demonstrate signs of improvement to regain investor confidence, or it risks facing further market sell-off pressure.
See More
Alight Reports Disappointing Q4 Earnings with Revenue and Profit Declines
- Revenue Decline: Alight's Q4 revenue fell 4% year-over-year to $653 million, missing analyst expectations of $654.6 million, indicating significant pressure in a competitive market.
- Net Income Drop: Non-GAAP net income plummeted 24% to $96 million, or $0.18 per share, falling short of the $0.24 expected by analysts, reflecting a notable deterioration in profitability.
- Reduced Project Revenue: The company attributed the revenue decline to decreased project revenue and a drop in commercial activity, suggesting that weak market demand could impact future performance.
- Cautious Management Outlook: While CEO Rohit Verma emphasized plans for sustainable growth, he admitted that the weakness experienced in 2025 would spill into 2026, indicating potential challenges for shareholders in the coming months.
See More
Alight Shares Plunge 42% Following Disappointing Earnings Report
- Disappointing Earnings: Alight's Q4 2025 revenue fell 4% year-over-year to $653 million, failing to meet analyst expectations of $654.6 million, indicating a weakening competitive position in the market.
- Significant Profit Decline: Non-GAAP net income plummeted 24% to $96 million, or $0.18 per share, significantly below the expected $0.24, reflecting a sharp decline in profitability.
- Reduced Project Revenue: The company attributed the revenue drop to decreased project revenue and declining commercial activity, while increased compensation expenses further pressured net income, signaling financial challenges ahead.
- Management's Pessimistic Outlook: Although CEO Rohit Verma expressed commitment to sustainable growth in the earnings release, he admitted that the weakness from 2025 would carry into 2026, suggesting shareholders may face more difficulties in the coming months.
See More
ALIGHT INC: CITIGROUP Downgrades to Neutral from Buy; Lowers Target Price to $1 from $6.5
- Citigroup's Stock Rating Change: Citigroup has downgraded its rating on StoneCo, moving from a "buy" to a "neutral" stance.
- Target Price Adjustment: The target price for StoneCo's stock has been significantly reduced from $6.50 to $1.00.
See More
U.S. Stocks Close Lower, Dow Jones Falls Over 300 Points
- Market Performance: U.S. stocks closed lower on Thursday, with the Dow Jones index dropping over 300 points, a decline of 0.64% to 49,346.38, indicating investor concerns about the economic outlook.
- Walmart Earnings: Walmart reported upbeat fourth-quarter results with adjusted earnings per share of 74 cents, exceeding the expected 73 cents, but its fiscal 2027 outlook fell short, projecting earnings between $2.75 and $2.85, below the consensus estimate of $2.96.
- Sales Growth: Walmart's sales reached $190.70 billion, a 5.6% year-over-year increase, surpassing the analyst consensus of $190.43 billion, demonstrating the company's strong performance in the retail market.
- Energy Stocks Rise: Despite the overall market decline, energy stocks gained 1.1%, reflecting investor confidence in the sector, likely driven by oil prices rising 2.1% to $66.53.
See More
