Insider Selling at Alight, Inc.: A Deep Dive into Financial Health and Market Position
Insider Selling at Alight, Inc. Highlights Investment Considerations
On Tuesday, April 2, 2024, Rooney Katie J., an officer at Alight, Inc. (ALIT:NYSE), engaged in a significant financial transaction by selling 2,777 shares of the company's Class A Common Stock at a price of $9.48 each. This sale reduced Rooney's holdings but left her with a substantial stake of 2,924,537 shares in ALIT. This move, documented through a Form 4 filing with the SEC, provides a glimpse into the insider activities within Alight, Inc., a key player in the Internet - Software sector. Such insider transactions are often closely monitored by investors for insights into the company's health and the confidence levels of its top executives.
Investors analyzing the Internet - Software sector might juxtapose ALIT against its peer, Paycor HCM, Inc. (PYCR), to discern which entity presents a more compelling investment proposition. According to Zacks Investment Research, both companies are noteworthy, yet a detailed examination is essential for a well-informed decision. ALIT's current Zacks Rank of #2 (Buy) signals positive earnings estimate revisions, potentially positioning it as an attractive choice for value investors. Conversely, PYCR, with a Zacks Rank of #3 (Hold), advises a more guarded investor approach. This comparison underscores the significance of earnings estimate revisions and the insights provided by the Zacks Rank and Style Scores system in evaluating investment opportunities within the sector.
Delving into ALIT's financial metrics reveals a company grappling with profitability challenges, as evidenced by its price-to-earnings (P/E) ratio of approximately -17.37 on a trailing twelve months (TTM) basis. This figure indicates that ALIT is currently not generating profit from its operations. However, the price-to-sales (P/S) ratio of about 1.53 TTM suggests that investors are willing to pay $1.53 for every dollar of sales the company makes, reflecting a certain level of investor confidence in ALIT's revenue-generating capabilities. Additionally, the enterprise value to sales (EV/Sales) ratio of approximately 1.87 TTM offers insights into the company's valuation relative to its sales, further aiding investors in assessing ALIT's market position.
Moreover, ALIT's enterprise value to operating cash flow (EV/OCF) ratio of around 16.48 TTM highlights how the market values the company against its operating cash flows, an important indicator of financial health. The earnings yield of approximately -5.76% TTM provides a perspective on the earnings generated for each dollar invested, while the debt-to-equity (D/E) ratio of about 0.64 TTM sheds light on the company's use of debt in financing its assets. Lastly, the current ratio of approximately 1.25 TTM suggests that ALIT maintains a reasonable balance between its assets and liabilities, ensuring it can meet its short-term obligations. These financial metrics collectively offer a comprehensive view of ALIT's financial standing, aiding investors in making informed decisions.
| Symbol | Price | %chg |
|---|---|---|
| CRM.BA | 22150 | 0 |
| GOTO.JK | 69 | 0 |
| GOOGL.SW | 1077.82 | 0 |
| 4684.T | 4700 | 0 |
Alight, Inc. (NYSE: ALIT) Q3 Earnings Overview
- Alight reported a Q3 earnings per share (EPS) of $0.09, missing the Zacks Consensus Estimate.
- The company's revenue for the quarter was $555 million, surpassing expectations.
- Alight's financial ratios indicate a moderate level of debt and reasonable liquidity.
Alight, Inc. (NYSE:ALIT) is a leading provider of cloud-based digital human capital and business solutions. The company focuses on employee benefits and wellbeing services, supporting large and complex clients in their people strategy initiatives. Alight operates in the competitive Zacks Internet - Software industry, where it strives to maintain its market leadership.
On November 12, 2024, Alight reported its Q3 earnings, revealing an earnings per share (EPS) of $0.09, which fell short of the Zacks Consensus Estimate of $0.11. This represents an 18.18% negative surprise and a decline from the $0.14 EPS reported in the same quarter last year. Despite this, Alight has exceeded consensus EPS estimates twice in the past four quarters.
Alight's revenue for the quarter was $555 million, surpassing the Zacks Consensus Estimate of $539.68 million by 1.98%. However, this is a decrease from the $813 million reported in the same period last year. Over the last four quarters, Alight has only exceeded consensus revenue estimates once, highlighting challenges in maintaining consistent revenue growth.
Financially, Alight has a price-to-sales ratio of approximately 1.73 and an enterprise value to sales ratio of about 2.39. These metrics indicate how the market values the company's sales and total valuation relative to its revenue. The enterprise value to operating cash flow ratio is around 29.72, reflecting the valuation of cash flow in relation to enterprise value.
Alight's debt-to-equity ratio is approximately 0.47, suggesting a moderate level of debt compared to its equity. The current ratio stands at about 1.30, indicating a reasonable level of liquidity to cover short-term liabilities.
