What Happened?

Shares of health insurance company Alignment Healthcare (NASDAQ:ALHC) jumped 17.5% in the afternoon session after the company reported strong fourth-quarter 2024 results and provided optimistic full-year revenue and EBITDA guidance, exceeding analysts' expectations. Sales jumped 50.7% from last year, fueled by a 58.6% rise in health plan members, reaching 189,100 by year-end. Profitability improved as the company logged its first full year of positive adjusted EBITDA. Zooming out, this quarter underscored the company's ability to scale efficiently while positioning itself for sustained growth.

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What The Market Is Telling Us

Alignment Healthcare’s shares are very volatile and have had 29 moves greater than 5% over the last year. But moves this big are rare even for Alignment Healthcare and indicate this news significantly impacted the market’s perception of the business.

Alignment Healthcare is up 33.6% since the beginning of the year, and at $15.44 per share, it is trading close to its 52-week high of $15.67 from February 2025. Investors who bought $1,000 worth of Alignment Healthcare’s shares at the IPO in March 2021 would now be looking at an investment worth $892.20.

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