Alignment Healthcare, Inc. (ALHC) Stock Analysis
Healthcare · Healthcare Plans
Sell if holding. Engine safety override at $19.64: Quality below floor (2.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.7/10. Specifically: High short interest: 13%; Elevated put/call ratio: 2.17; Below-average business quality.
Alignment Healthcare offers Medicare Advantage plans to seniors through 45 markets across California, North Carolina, Nevada, Arizona, and Texas, managing 236,300 members as of December 31, 2025. Revenue is a per-member-per-month capitated payment from CMS covering all Medicare... Read more
Sell if holding. Engine safety override at $19.64: Quality below floor (2.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.7/10. Specifically: High short interest: 13%; Elevated put/call ratio: 2.17; Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.7/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst 0.40, earnings proximity no date, semi cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerCMS contracts10-K Item 1A: 'We currently derive substantially all of our revenue from CMS contracts related to our Medicare Advantage health plans.'
- MEDIUMGeographiclimited U.S. states10-K Item 1A: 'Our plans are concentrated in a limited number of U.S. states and we may not be able to establish new geographic presences.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
3 floor-breakers·1 ceiling hit
Unprofitable operations — net margin -0.0%. Quality floor flags this regardless of sector context.static
Volatile — 5.2% daily ATR makes tight stops impractical. Position-size conservatively.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $19.64: Quality below floor (2.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.7/10. Specifically: High short interest: 13%; Elevated put/call ratio: 2.17; Below-average business quality. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $18.26. Score 5.7/10, moderate confidence.
Take-profit target: $22.08 (+12.5% upside). Prior stop was $18.26. Stop-loss: $18.26.
Concentration risk — Customer: CMS contracts; Quality below floor (2.3 < 4.0); Value-trap signals (2/5): High leverage (D/E 2.8), Material insider selling (131 sells, 0.04% of cap).
Alignment Healthcare, Inc. trades at a P/E of N/A (forward 31.0). TrendMatrix value score: 6.7/10. Verdict: Sell.
19 analysts cover ALHC with a consensus score of 4.3/5. Average price target: $25.
What does Alignment Healthcare, Inc. do?Alignment Healthcare offers Medicare Advantage plans to seniors through 45 markets across California, North Carolina,...
Alignment Healthcare offers Medicare Advantage plans to seniors through 45 markets across California, North Carolina, Nevada, Arizona, and Texas, managing 236,300 members as of December 31, 2025. Revenue is a per-member-per-month capitated payment from CMS covering all Medicare Parts A, B, and D costs; the company reported a narrow net loss of $1.0 million in 2025 versus $128.1 million in 2024.