DA Davidson has reaffirmed its “buy” rating for Alight, Inc. (NYSE: ALIT), maintaining a target price of $6.00. This recommendation, announced in a report on November 6, 2023, suggests a substantial potential upside of 186.4% from the company’s current trading price. Several other financial institutions have also recently provided insights into Alight’s stock performance.
On the same day, UBS Group adjusted its price target for Alight, decreasing it from $6.50 to $4.00, while still issuing a “buy” rating. In contrast, Weiss Ratings assigned a “sell (d-)” rating to Alight on October 8, 2023. Additionally, Wedbush reduced its target price from $7.00 to $5.00, categorizing the stock as “outperform.” Currently, four analysts rate Alight as a “buy,” while one has issued a “sell” rating. As of now, the consensus rating stands at “Moderate Buy,” with an average price target of $5.25, according to MarketBeat.
Recent Earnings Report
Alight announced its quarterly earnings on November 5, 2023, reporting earnings per share (EPS) of $0.12. This figure fell short of analyst expectations, who had predicted EPS of $0.13. The company also recorded a 7.89% return on equity but faced a significant net margin of -94.23%. Alight’s revenue for the quarter reached $533 million, below the anticipated $539.43 million, marking a 4.0% decrease compared to the same quarter the previous year, during which it earned $0.09 per share. The company has set forward-looking guidance for fiscal year 2025 at an EPS range of $0.540 to $0.580, with analysts predicting an average EPS of $0.54 for the current fiscal year.
Insider Transactions and Institutional Activity
In recent insider activity, Alight’s Director, Robert A. Schriesheim, purchased 42,098 shares on November 26, 2023, at an average cost of $2.38 per share, totaling $100,193.24. Following this transaction, Schriesheim’s total shareholding increased to 109,130 shares, valued at approximately $259,729.40. This acquisition reflects a 62.8% increase in his position.
Additionally, Director Kausik Rajgopal acquired 40,000 shares on November 25, 2023, for $2.24 per share, amounting to $89,600.00. Rajgopal now holds 125,202 shares valued at around $280,452.48, representing a 46.95% increase in ownership. In total, insiders have purchased 193,116 shares of Alight in the past three months, with a combined value of $448,984. Currently, corporate insiders hold 1.93% of the company’s stock.
Recent institutional activity has also seen significant movements. Caitong International Asset Management Co. Ltd increased its holdings in Alight by 82.8% in the first quarter, now owning 5,184 shares worth $31,000 after acquiring an additional 2,348 shares. EverSource Wealth Advisors LLC raised its stake by 152.1% during the second quarter, totaling 5,201 shares valued at $29,000. Other firms such as PNC Financial Services Group Inc. and Nomura Asset Management Co. Ltd. have also expanded their positions in Alight, with institutional investors now owning 96.74% of the company’s shares.
Alight, Inc., a provider of cloud-based digital human capital and business solutions, operates through its segments: Employer Solutions and Professional Services. The Employer Solutions segment encompasses a range of services, including employee wellbeing, integrated benefits administration, and payroll, alongside AI-led capabilities software.
