DA Davidson has reaffirmed its “buy” rating for Alight, Inc. (NYSE: ALIT), setting a target price of $6.00 per share. This recommendation, highlighted in a report released on November 6, 2023, suggests a substantial upside potential of 186.4% from the company’s current trading price. Other financial institutions have also recently weighed in on Alight, indicating a diverse outlook on the company’s performance.
UBS Group adjusted its price target for Alight, lowering it from $6.50 to $4.00, while maintaining a “buy” rating. Meanwhile, Weiss Ratings issued a “sell (D-)” rating in its report published on October 8, 2023. Wedbush also revised its target, decreasing it from $7.00 to $5.00 but retained an “outperform” rating. Currently, four analysts have classified Alight’s stock as a “buy,” while one has issued a “sell” rating. According to MarketBeat, the consensus rating stands at “Moderate Buy,” with an average price target of $5.25.
Quarterly Earnings Report Highlights
Alight recently disclosed its quarterly earnings on November 5, 2023. The company reported earnings of $0.12 per share (EPS), falling short of analysts’ expectations of $0.13 by $0.01. This result reflects a 7.89% return on equity, although the net margin was notably negative at 94.23%. Revenue for the quarter reached $533 million, which was below the forecast of $539.43 million. Comparing year-over-year results, Alight’s revenue declined by 4.0%. The company has set its fiscal year 2025 guidance at an EPS range of $0.540 to $0.580. Analysts project an EPS of $0.54 for the current fiscal year.
Insider Trading Activity
In addition to analyst ratings, insider trading activity has also been notable. On November 26, 2023, Director Robert A. Schriesheim purchased 42,098 shares at an average price of $2.38 per share, totaling $100,193.24. This acquisition increased his holdings in Alight to 109,130 shares, worth approximately $259,729.40. Similarly, Director Kausik Rajgopal acquired 40,000 shares on November 25, 2023, at an average price of $2.24, amounting to $89,600.00. Following this transaction, Rajgopal owns 125,202 shares valued at about $280,452.48. Over the past three months, insiders have collectively purchased 193,116 shares of Alight, valued at $448,984. Currently, corporate insiders hold 1.93% of the company’s stock.
Institutional investors have also shown significant interest in Alight. Caitong International Asset Management Co. Ltd increased its stake by 82.8% in the first quarter, acquiring an additional 2,348 shares. EverSource Wealth Advisors LLC raised its holdings by 152.1%, while PNC Financial Services Group Inc. boosted its position by 4.7%. Overall, approximately 96.74% of Alight’s stock is now owned by institutional investors and hedge funds.
Alight, Inc. specializes in cloud-based integrated digital human capital and business solutions. The company operates through two main segments: Employer Solutions and Professional Services. The Employer Solutions segment offers a range of services, including employee wellbeing, benefits administration, healthcare navigation, financial wellbeing, and payroll services.
Investors will be closely monitoring Alight’s performance as the company navigates the current market landscape and works to meet its financial targets.
