Reviewed listing: NASDAQ:ALHC · Analysis dated Oct 22, 2026
The underlying information has changed since this analysis. This earlier assessment has not yet been updated for those changes. It refers to the analysis date and original reviewed price shown here.
How does the company make money?
Alignment offers Medicare Advantage health insurance plans for older people in the United States. It receives insurance payments and must fund medical costs, care, and administration from them.
What supports the business?
First-half revenue increased to 2.571 billion USD, and profit attributable to common shareholders reached 47.976 million USD, up from 6.553 million USD. Growth and improved profitability are established.
What could improve?
More members and more efficient care can further increase earnings. Additional upside is possible if the key contract regains its higher star rating or financial disadvantages are limited.
How is the stock price assessed?
This assessment refers to the analysis and its quoted price shown here. It is not a live quote or a personal recommendation to buy.
8.44 USD correspond to a market capitalization of approximately 1.75 billion USD and around 18 times H1 earnings merely doubled. This looks moderate, but does not yet account for a reliably quantified loss of the bonus starting 2028. The price assessment remains open.
What is the main risk?
The main California contract, covering about 75% of members, fell from four to 3.5 stars for the 2027 rating year. According to the company, the financial impact concerns bonus payments 2028; a successful appeal or lawsuit is not assured.
What is the overall assessment?
Alignment is growing profitably, but has just lost an important quality rating for its largest insurance contract. The effect on bonus payments starting 2028 currently prevents a sufficiently reliable positive price assessment.
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