JP Morgan has recently reduced Alight Inc (ALIT) stock to Neutral rating, as announced on August 20, 2024, according to Finviz. Earlier, on January 5, 2024, Citigroup had resumed the stock to Buy, setting a price target of $12. Canaccord Genuity also initiated Buy rating with a price target of $12. Additionally, UBS initiated Buy rating on November 7, 2023, with a target price of $10. Citigroup analysts, in their report published on June 13, 2023, also initiated Buy rating and set a price target of $12 for Alight Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Alight Inc (ALIT) Stock Trading Recap
On Tuesday, Alight Inc (ALIT) stock saw a decline, ending the day at $6.03 which represents a decrease of $-0.13 or -2.11% from the prior close of $6.16. The stock opened at $6.12 and touched a low of $5.98 during the day, reaching a high of $6.19. The volume of shares traded was 9.58 million exceeding the average volume of 6.24 million.
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ALIT Stock Performance and Moving Averages
In recent trading, Alight Inc (ALIT) stock price has shown some volatility, fluctuating -4.44% over the last five trades and -8.36% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -15.78%, and it has plunged by -19.60% in the previous three months. Currently, ALIT is trading at -9.08%, -10.47%, and -15.97% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ALIT, a Technology sector stock, is trading -41.91% below its 52-week high but remains -1.95% above its 52-week low. The Average True Range (ATR) (14 days) of 0.24 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Alight Inc’s Profitability and Valuation Ratios
Alight Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 2.36% and a profit margin of -6.13%, with a gross margin of -15.78%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Alight Inc’s market capitalization stands at $3.27 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 9.24. Additionally, the Price-to-Sales Ratio is 1.40, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.74, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 15.30% of Alight Inc (ALIT)’s shares, while financial institutions hold 98.34%.
Notable insider trades include Goff Gregory R, President at Alight Inc (ALIT), who sold 250,000 shares on Nov 27 ’24, at $8.00 each, totaling $2.00 million. On Nov 15 ’24, George Gregory A., Chief Commerical Officer, sold 84,929 shares for $7.60 each, amounting to $0.65 million. Additionally, on Nov 13 ’24, FOLEY WILLIAM P II sold 5,000,000 shares at $8.25 each, generating $41.27 million.
