Why Alight Stock Got Mashed on Monday
Key Points
An analyst tracking the enterprise tech solutions specialist slashed his price target.
His new level is under $1 per share.
- 10 stocks we like better than Alight ›
The pain felt by Alight (NYSE: ALIT) shareholders continued through Monday's trading session. The stock, battered last week after investors traded out of it following a disappointing earnings report, shed a bit more of its value that day. Its price fell by 5%, as an analyst at a top bank became more bearish on the company.
A deep cut
That pundit was Bank of America Securities' Curtis Nagle, who made a rather drastic chop to his Alight fair value assessment. He reduced it to $0.50 per share, well down from his previous $1.40. Not surprisingly, he maintained his underperform (i.e., sell) recommendation on the beleaguered tech stock.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Nagle's take was essentially a reaction to the company's fourth-quarter and full-year 2025 earnings, which it reported last Thursday. According to reports, the analyst wrote that Alight's significant miss on current (first) quarter top-line guidance implies a notable decline in revenue retention. That's particularly worrying in an environment where, Nagle opined, recurring revenue is generally solid.
The prognosticator noted that the recently installed CEO, Rohit Verma, has pushed for operational excellence. Judging by the sharply negative investor reaction after earnings, however, it seems the market doesn't believe this goal has been met.
Gloomy pronouncement
If I were an Alight shareholder, I'd also be concerned about Verma's gloomy forecast on the conference call discussing the results: that its struggles in 2025 might just continue into 2026. While I wouldn't necessarily write the company off completely, I feel it needs to start showing clear signs of improvement -- and quickly -- for investors to return to it.
Should you buy stock in Alight right now?
Before you buy stock in Alight, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alight wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $424,262!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,163,635!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 23, 2026.
Bank of America is an advertising partner of Motley Fool Money. Eric Volkman 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.
Recommended Articles
