Alignment Healthcare Insider Sells $1.3 Million in Stock With Shares Up 78% This Past Year
Key Points
One Alignment Healthcare insider directly sold 69,541 shares of the company on Dec. 29 for $1.3 million.
The sale represented 12.15% of his direct holdings, reducing his direct stake from 572,555 to 503,014 shares.
No indirect holdings or derivative securities were involved; all shares were disposed from direct ownership.
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On Dec. 29, Alignment Healthcare (NASDAQ:ALHC) Chief Information Officer Robert L. Scavo executed an open-market sale of 69,541 shares for a total consideration of approximately $1.3 million, as disclosed in a SEC Form 4 filing.
Transaction Summary
| Metric | Value |
|---|---|
| Shares sold (direct) | 69,541 |
| Transaction value | $1.3 million |
| Post-transaction shares (direct) | 503,014 |
| Post-transaction value (direct ownership) | $9.53 million |
The transaction value is based on the SEC Form 4 weighted average purchase price ($18.74), and the post-transaction value is based on Dec. 29 holdings.
Key Questions
- How significant was this sale compared to Scavo's previous transactions?
This 69,541-share sale was materially larger than Scavo’s historical median for sell-only events (8,235 shares), though not the largest in his record; recent dispositions have included a 100,863-share sale in June 2025. - What proportion of his available shares did Scavo sell in this transaction?
The transaction accounted for 12.2% of his direct holdings, which is above his recent-period median of 4.91% per sale, but reflects a pattern of larger transactions as his available share balance declines. - Did the sale involve any indirect holdings or derivative securities?
No; all shares involved were directly held common stock, with post-transaction indirect holdings reported as zero and no options or other derivative mechanisms exercised or settled in connection with this event. - How does the timing of this sale relate to Alignment Healthcare's market performance?
The sale occurred as of Dec. 29, when shares were priced at $18.74 at the market close, capping a 73% one-year return for the stock; this context may have influenced the decision to realize value from direct equity holdings.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.64 billion |
| Net income (TTM) | ($20.81 million) |
| Price (as of Wednesday) | $20.93 |
| 1-year price change | 78% |
Company Snapshot
- Alignment Healthcare offers Medicare Advantage plans and related healthcare coordination services, primarily generating revenue through insurance premiums and service fees.
- The company operates a tech-enabled, consumer-centric platform focused on delivering personalized care to seniors, monetizing through direct plan enrollments and partnerships with unaffiliated health maintenance organizations.
- It targets Medicare-eligible seniors in California, North Carolina, and Nevada, serving individuals seeking comprehensive, value-based healthcare solutions.
Alignment Healthcare is a tech-enabled Medicare Advantage provider specializing in customized healthcare plans for seniors. The company leverages advanced technology and a consumer-focused approach to deliver integrated care.
What this transaction means for investors
Scavo’s latest stock sale matters primarily as a reminder to separate insider mechanics from business fundamentals. The Form 4 is explicit that the transaction was non-discretionary, representing shares automatically sold to cover tax withholding obligations tied to the vesting of performance share units.
Meanwhile, Alignment Healthcare is coming off one of its strongest operating quarters to date. In the third quarter, revenue climbed 43.5% year over year to $993.7 million, membership rose nearly 26%, and the company posted $32.4 million in adjusted EBITDA while raising full-year guidance across every major metric. That performance has helped drive a roughly 78% gain in the stock over the past year.
While the size of the sale exceeded Scavo’s historical median disposition, it accounted for just over 12% of his direct holdings and did not involve options, derivatives, or indirect entities. For investors, the more durable signal remains Alignment’s ability to scale membership profitably while improving margins. Tax-driven insider sales may look large in isolation, but they do little to alter the company’s longer-term operating trajectory.
Glossary
Open-market sale: The sale of company shares on a public stock exchange at prevailing market prices.
SEC Form 4: A required filing disclosing insider trades by company officers, directors, or major shareholders.
Direct holdings: Shares owned personally by an individual, not through intermediaries or related entities.
Indirect holdings: Shares owned through trusts, family members, or other entities rather than directly by the individual.
Derivative securities: Financial contracts whose value is based on the price of an underlying asset, such as options or warrants.
Weighted average price: The average price per share in a transaction, adjusted for the number of shares sold at each price.
Disposition: The act of selling or otherwise transferring ownership of an asset, such as company stock.
Median historical sell: The middle value of all previous share sale amounts by an insider, used for comparison.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Tech-enabled: Enhanced or supported by technology to improve efficiency or service delivery.
Medicare Advantage: A type of health insurance plan offered by private companies as an alternative to traditional Medicare.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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