Insider Trading February 10, 2026

Alignment Healthcare CEO Executes $3.68M Stock Sale as Membership and Analyst Sentiment Rise

John E. Kao sells 180,000 shares under a Rule 10b5-1 plan; company guiding for membership expansion and consensus EBITDA alignment

By Sofia Navarro ALHC
Alignment Healthcare CEO Executes $3.68M Stock Sale as Membership and Analyst Sentiment Rise
ALHC

Alignment Healthcare Chief Executive Officer John E. Kao sold 180,000 shares on February 10, 2026, for $3.68 million under a pre-arranged trading plan. The transaction occurred as the stock has appreciated strongly over six months and follows positive analyst updates and company membership guidance for 2026.

Key Points

  • CEO John E. Kao sold 180,000 shares on February 10, 2026, for $3.68 million at a weighted-average price of $20.4853, with trades between $20.23 and $20.66.
  • Following the sale, Kao holds 1,568,379 shares directly and 2,652,641 shares indirectly via the JEK Trust dated February 8, 2021, where he is trustee.
  • Alignment Healthcare projects 24-27% health plan membership growth by end of 2026 (290,000-296,000 members) and expects EBITDA to align with consensus of $145 million; analysts have raised targets and ratings.

Alignment Healthcare (NASDAQ:ALHC) disclosed that Chief Executive Officer John E. Kao sold 180,000 shares of common stock on February 10, 2026, generating proceeds of $3.68 million. The block of shares was sold at a weighted-average price of $20.4853, with execution prices spanning from $20.23 to $20.66.

The sale was carried out under a pre-established Rule 10b5-1 trading plan that Mr. Kao adopted on March 12, 2025. Following the transaction, Kao's direct holdings in Alignment Healthcare stand at 1,568,379 shares. He also maintains indirect ownership of 2,652,641 shares through the JEK Trust, dated February 8, 2021, for which he serves as trustee.

Alignment Healthcare's share price has seen meaningful appreciation recently, gaining 41.2% over the past six months. The stock was trading at $20.63 at the time of the disclosure, a level close to its 52-week high of $23.87.

On fundamentals, InvestingPro data cited in the company disclosure notes that Alignment Healthcare has not been profitable over the last twelve months. Nevertheless, the same data assigns the company an overall financial health score of 3.18, labeled as "GREAT." Analysts tracked by InvestingPro forecast that the company will reach profitability this year, with an expected EPS of $0.23 for fiscal year 2025.

Investors should note that InvestingPro's valuation work indicates ALHC is trading slightly above its Fair Value. The company is scheduled to report its next quarterly results in 15 days on February 26, 2026.

Alignment Healthcare's market capitalization is identified at $4.12 billion in the underlying research note. The company has provided directional membership guidance for 2026 and is pointing to continued growth in its health plan business.

Specifically, Alignment Healthcare expects health plan membership to expand by 24-27% by the end of 2026, projecting a membership range of 290,000 to 296,000 members. This guidance follows a reported 31% year-over-year increase in membership as of January 1, which the company attributed to a strong annual enrollment period.

On the profitability front, Alignment Healthcare anticipates that its EBITDA will align with current consensus estimates of $145 million.

Analyst coverage has shifted more positive in recent weeks. KeyBanc raised its price target to $28 while maintaining an Overweight rating, citing expected membership growth. Piper Sandler lifted its price target to $30, highlighting robust sales and retention during the recent Annual Enrollment Period. JPMorgan upgraded the rating from Neutral to Overweight and increased its price target to $20, pointing to the company’s strong performance in 2025. Collectively, these analyst actions reflect a more constructive outlook among sell-side firms.


Taken together, the insider sale, the company's membership targets and the recent analyst revisions frame the current market view of Alignment Healthcare as one balancing near-term valuation considerations with optimism about membership-driven revenue growth and consensus EBITDA expectations.

Risks

  • The company was not profitable over the last twelve months, which presents an ongoing financial performance risk for investors in the healthcare sector.
  • InvestingPro analysis indicates ALHC is trading slightly above its Fair Value, creating valuation risk for equity investors in the current market environment.
  • Upcoming earnings in 15 days on February 26, 2026 could introduce short-term volatility if results or guidance diverge from expectations, affecting healthcare and financial markets tied to the stock.

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