DA Davidson has reiterated its “buy” rating for Alight, Inc. (NYSE: ALIT) in a report issued on November 6, 2023, indicating a target price of $6.00 per share. This target suggests a potential upside of 186.40% from Alight’s current trading price. The reaffirmation comes amid varying assessments from other financial institutions regarding the company’s stock performance.
Research from UBS Group has shown a more conservative approach, having lowered its price target from $6.50 to $4.00, while maintaining a “buy” rating. In contrast, Weiss Ratings has issued a “sell (D-)” rating for Alight, highlighting concerns about the company’s performance. Meanwhile, Wedbush adjusted its target price from $7.00 to $5.00 while also categorizing the stock as “outperform.” Currently, four analysts rate the stock as a “buy,” with one analyst assigning a “sell” rating. MarketBeat reports a consensus rating of “Moderate Buy” and an average price target of $5.25.
Recent Earnings and Performance
Alight’s latest earnings report, released on November 5, 2023, revealed a decline in performance. The company reported earnings per share (EPS) of $0.12, falling short of analysts’ expectations of $0.13 by $0.01. The firm recorded revenues of $533 million, which also missed the anticipated $539.43 million. Year-over-year, Alight’s revenue decreased by 4.0%. The company has set guidance for fiscal year 2025 at an EPS range of $0.540 to $0.580, with analysts forecasting an average EPS of $0.54 for the current fiscal year.
Insider Activity and Institutional Investments
Insider trading activity has indicated increased confidence from key company figures. Director Robert A. Schriesheim purchased 42,098 shares on November 26, 2023, acquiring them at an average price of $2.38 per share, resulting in a total transaction of $100,193.24. Following this acquisition, Schriesheim now holds a total of 109,130 shares, valued at approximately $259,729.40. This transaction represents a 62.80% increase in his position.
Similarly, Director Kausik Rajgopal acquired 40,000 shares at an average price of $2.24 per share, totaling $89,600.00. After this purchase, Rajgopal’s holdings rose to 125,202 shares, worth about $280,452.48, reflecting a 46.95% increase in ownership. Over the past three months, insiders have collectively acquired 193,116 shares valued at approximately $448,984.
Institutional investors are also actively adjusting their positions in Alight. Caitong International Asset Management Co. Ltd increased its stake by 82.8% during the first quarter, now holding 5,184 shares. EverSource Wealth Advisors LLC raised its holdings by 152.1% in the second quarter, while PNC Financial Services Group Inc. boosted its position by 4.7% during the same period. A significant portion, 96.74%, of Alight’s stock is currently owned by institutional investors and hedge funds, indicating strong institutional interest.
Alight, Inc. operates in the cloud-based integrated digital human capital and business solutions sector globally, divided into two main segments: Employer Solutions and Professional Services. The Employer Solutions segment provides a range of services, including employee wellbeing, integrated benefits administration, and payroll management, underpinned by artificial intelligence capabilities.
As the company navigates its financial landscape, analysts and investors will be closely watching Alight’s performance and strategic decisions in the coming quarters.
