Insider Trading Analysis Report on Alignment Healthcare (ALHC)

According to the latest SEC filings, Alignment Healthcare experienced a wave of large-scale executive share sales between December 2025 and January 2026 [1][2][3]:

• Joyce is a 10% owner of the company; following this sale, he still holds 297,088 shares, valued at approximately $5,950,673 [3]
• CEO John E. Kao sold the largest stake, though he still holds a significant number of shares
• This wave of share sales occurred when the company’s stock price was near its all-time high ($21.65, 52-week high)

The current stock price is $21.30, near the 52-week high of $21.65; the company demonstrated strong growth momentum in 2025 [0]:

The company’s financial results for the last two quarters exceeded market expectations [0]:

• Q3 FY2025
  : EPS $0.02 vs. consensus estimate of $-0.01 (300% beat); revenue $993.7 million vs. consensus estimate of $980.9 million
• Q2 FY2025
  : EPS $0.07; revenue $1.02 billion

The company has demonstrated significant stock price growth [0]:

• 1-year gain:
  +88.16%
• 3-month gain:
  +24.49%
• 6-month gain:
  +62.10%

Based on technical indicator analysis [0]:

• Resistance Level
  : $21.65 (52-week high)
• Support Level
  : $19.81
• Next Target Level
  : $22.40

• Executives chose to sell and cash out when the stock price was near its all-time high, which is typically a
  negative signal
• Synchronized share sales by multiple insiders may be interpreted by the market as confirmation of short-term overvaluation

• The CEO sold $11 million worth of shares, and the President sold $5.3 million worth of shares——
  significant amount of share sales
• Joyce, a 10% owner, reduced his stake (from 323,886 shares to 297,088 shares, a 3.45% decrease) [3]

• The company is categorized as having an “aggressive” accounting policy, with limited room for profit growth [0]
• Free cash flow remains negative (-$6.648 million) [0]

• Despite the sales, executives still hold substantial shareholdings (Joyce still holds approximately $5.95 million worth of shares)
• This indicates they have not fully exited, maintaining alignment of interests

• Consensus Rating:
  Buy
  (14 out of 21 analysts recommend Buy) [0]
• JPMorgan upgraded its rating to
  Overweight
  in November 2025 [0]
• Baird recently stated that “there is no fundamental reason to sell” and views the company as a
  key beneficiary
  of Medicare Advantage [2]

• Consecutive earnings beats in Q3 and Q2
• Clear trend of continuous revenue growth

The impact of insider sales on ALHC stock requires a

1. Short-term (1-3 months)
   : Given the overbought technical condition and large-scale insider sales, the stock price may face
   short-term pullback pressure
   , with support at $19.81

2. Medium-term (3-6 months)
   : If the company continues to demonstrate growth momentum and analysts maintain their bullish stance, the stock price is expected to break through the $21.65 resistance level, with a target of $22.40

3. Long-term
   : The company operates in the Medicare Advantage space, with potential for business growth, but its profit model has not yet been fully validated

• Risk-averse investors
  : May consider
  waiting on the sidelines
  and look to enter once the stock price pulls back to the $19-$20 range
• Risk-tolerant investors
  : If bullish on the healthcare industry and the Medicare Advantage space, may
  initiate a small position
  with a stop-loss set at $19.50
• Investors holding positions
  :
  Do not panic sell
  , but should closely monitor the upcoming Q4 earnings report to be released on February 26, 2026

Investors are advised to focus on the following items:

1. Subsequent insider trading
   : Whether other executives sell shares, or if share repurchases occur
2. Earnings report on February 26, 2026
   : FY2025 Q4 results (consensus EPS estimate of $-0.15) [0]
3. Changes to Medicare Advantage policies
   : Industry regulatory developments may impact the company’s business
4. Analyst target price adjustments
   : Whether institutions such as JPMorgan adjust their ratings due to insider trading

[1] TradingView - “Alignment Healthcare Executive Sells Shares” (https://www.tradingview.com/news/tradingview:05fb1fa1b54ce:0-alignment-healthcare-executive-sells-shares/)

[2] TipRanks - “Top Alignment Healthcare Insiders Quietly Unload a Massive Chunk of Shares” (https://www.tipranks.com/news/insider-trading/top-alignment-healthcare-insiders-quietly-unload-a-massive-chunk-of-shares-insider-trading)

[3] MarketBeat - “Alignment Healthcare (NASDAQ:ALHC) Insider Sells $212,538.33 in Stock” (https://www.marketbeat.com/instant-alerts/alignment-healthcare-nasdaqalhc-insider-sells-21253833-in-stock-2026-01-06/)

[0] Jinling AI Financial Database (real-time market data, company profiles, technical analysis, financial analysis)