In-Depth Analysis of Alignment Healthcare's Executive Stock Sell-Off Event

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According to Form 4 filings publicly available from the U.S. Securities and Exchange Commission (SEC), Alignment Healthcare, Inc. (NASDAQ: ALHC) saw a wave of concentrated executive stock sell-off transactions on

[0]. Below are the transaction details of key executives [0]:

Executive Name	Position	Shares Sold	Approximate Sale Amount	Reason for Sale
John E. Kao	Chief Executive Officer (CEO)	605,648 shares	$11,348,201	Tax Withholding Upon Performance Share Vesting
Dawn C. Maroney	President	282,070 shares	$5,285,226	Tax Withholding Upon Performance Share Vesting
Robert L. Scavo	Chief Information Officer (CIO)	69,541 shares	$1,303,009	Tax Withholding Upon Performance Share Vesting
Christopher J. Joyce	Chief Legal and Administrative Officer	16,187 shares	$303,300	Tax Withholding Upon Performance Share Vesting
Hyong (Ken) Kim	Chief Medical Officer (CMO)	12,694 shares	$237,851	Tax Withholding Upon Performance Share Vesting

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All the above executive sell-off transactions are clearly marked as

. This means:

• Transaction Nature
  : This is a passive sell-off, not active selling by executives
• Execution Method
  : The company automatically disposes of a portion of shares in accordance with PSU vesting rules to cover tax liabilities
• 10b5-1 Plan
  : None of the transactions are marked as 10b5-1 plan transactions (aff10b5One=0), indicating this is an immediately executed tax withholding operation [0]

The selection of December 29, 2025, for tax withholding settlement may be based on the following considerations:

1. Fiscal Year End Settlement
   : Most companies have performance shares vesting centrally at the end of the fiscal year for ease of financial accounting
2. Tax Planning
   : Conducting tax withholding at the end of the year allows tax liabilities to be recorded in the current fiscal year
3. Stock Price Consideration
   : The stock price was at a relatively high level at that time (weighted average price $18.71-$19.38), with transaction prices ranging from $18.23 to $19.51 [0]

Based on financial data, Alignment Healthcare showed strong growth momentum in 2025 [0]:

• Revenue Growth
  : Q3 2025 revenue reached $993.7 million, growing over 40% year-over-year
• Earnings Beat Expectations
  : Q3 EPS of $0.02 vs. expected $-0.01, representing a 300% surprise
• Stock Performance
  : 88.16% increase over the past year, with the stock hitting a 52-week high of $21.65 [0]

This indicates that a large number of executives’ performance shares likely vested due to the company meeting or exceeding performance targets.

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Feature	Active Sell-Off (Warning Signal)	Passive Sell-Off (Neutral)
10b5-1 Plan	Usually pre-disclosed	Usually none
Transaction Scale	Large single-sale transactions	Calculated per formula
Transaction Frequency	Continuous selling	One-time settlement
Reason for Sell-Off	Cash-out, valuation concerns	Tax withholding, exercise settlement
This Event	Does Not Match	Fully Matches

: This sell-off is a typical passive tax withholding operation and should not be interpreted as a negative signal from executives regarding the company’s prospects [0].

Despite the large-scale sell-off, key executives still hold significant share positions after the transactions [0]:

• CEO John E. Kao
  : 2,234,294 shares (directly held) + 2,346,726 shares (indirectly held via trust)
• President Dawn C. Maroney
  : 1,385,167 shares
• CMO Hyong Kim
  : 349,639 shares
• CIO Robert L. Scavo
  : 503,014 shares

This continued “interest alignment” indicates that executives remain confident in the company’s long-term development.

[0]:

• Revenue growth for four consecutive quarters, with Q3 revenue hitting an all-time high
• Returned to profitability (Q3 EPS positive)
• Favorable analyst ratings: 81.2% are “Buy” ratings
• JPMorgan upgraded its rating from “Neutral” to “Overweight” in November 2025
• Stock price in an uptrend, with technical indicators showing bullish signals

[0]:

• The company is still in a net loss position (ROE of -16.29%)
• Valuation is relatively high (P/B of 26.19x, negative P/E)
• Healthcare policy regulatory risk

As can be seen from SEC Form 144 filings [0], the company also registered securities offerings related to employee benefit plans, which usually indicates:

1. Employee Stock Ownership Plan Operating Normally
   : The company continues to attract and retain talent through equity incentives
2. Orderly Liquidity Management
   : Tax withholding is carried out in sync with new share grants to avoid excessive equity dilution

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According to the technical analysis report [0]:

Indicator	Status	Interpretation
MACD	Golden Cross	Mid-term upward momentum confirmed
KDJ	K=76, J=104.5	Short-term overbought, needs pullback and consolidation
RSI	In overbought zone	Short-term adjustment pressure
Trend Determination	Uptrend (to be confirmed)	Mid-term outlook remains positive
Key Support Level	$19.81	Reference level for buying on pullback
Key Resistance Level	$21.65	Expected to challenge $22.40 if broken

Indicator	Value	Industry Comparison
Price-to-Sales (P/S)	1.17x	Moderate level in the healthcare industry
Price-to-Book (P/B)	26.19x	Relatively high
EV/Operating Cash Flow (EV/OCF)	21.88x	Rationality needs to be combined with growth expectations

: $21.00, representing a discount of approximately 1.4% from the current stock price, reflecting that short-term valuation has been fully priced in [0].

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1. Executive Sell-Off is a Passive Operation
   : This large-scale sell-off is a routine tax withholding procedure for performance share vesting, and does not reflect negative judgments from executives regarding the company
2. Deep Interest Alignment with Executives
   : After the sell-off, executives still hold shares worth millions of dollars, highly aligning with shareholder interests
3. Fundamentals Support Stock Price
   : The company’s performance continues to improve, with strong revenue growth and a profit inflection point emerging
4. Potential Short-Term Adjustment
   : Technical indicators show overbought conditions, and the stock price is close to the analyst target price, suggesting waiting for a pullback before positioning

• Changes in healthcare policies may impact Medicare Advantage business
• Intensified competition may lead to pricing pressure
• The company has not yet achieved sustained profitability, with significant cash flow volatility
• Current valuation has partially reflected optimistic expectations

Investor Type	Recommendation
Existing Holders	May continue to hold, monitor the $19.81 support level
Potential Investors	Recommended to wait for a pullback to around the 20-day moving average (approximately $20.50) to build positions in batches
Short-Term Traders	Monitor the $21.65 resistance level, follow up if broken [0]

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[0] Jinling API Data - Alignment Healthcare Company Profile, Financial Analysis, Technical Analysis, and SEC Form 4 Filings

[1] 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)

[2] SEC EDGAR - Form 4 Filings for ALHC (https://www.sec.gov/Archives/edgar/data/1832466/000162828025059126/0001628280-25-059126-index.htm)