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Alignment Healthcare: Strong Financial Performance and Strategic Growth Positioning Earns Buy Rating

Alignment Healthcare: Strong Financial Performance and Strategic Growth Positioning Earns Buy Rating

William Blair analyst Ryan Daniels has reiterated their bullish stance on ALHC stock, giving a Buy rating on October 14.

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Ryan Daniels has given his Buy rating due to a combination of factors including Alignment Healthcare’s impressive financial performance and strategic positioning. The company reported robust third-quarter 2025 results, significantly surpassing expectations with a medical benefit ratio of 87.2% and an adjusted EBITDA of $32.4 million, both of which exceeded market forecasts. Additionally, the revenue growth of 43.5% year-over-year further underscores the company’s strong operational execution.
Furthermore, Alignment Healthcare’s management has shown confidence in sustaining growth, projecting a 20% or greater increase in membership for 2026. This optimism is supported by the company’s consistent high ratings, maintaining four Stars across all memberships and achieving top ratings in newer markets like Nevada and North Carolina. The company’s unique model, which effectively balances growth with cost management and operational discipline, positions it favorably within the Medicare Advantage sector, offering a more stable outlook compared to other healthcare lines.

In another report released on October 14, Goldman Sachs also initiated coverage with a Buy rating on the stock with a $17.51 price target.

Based on the recent corporate insider activity of 122 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ALHC in relation to earlier this year.

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