Alight | ALIT | Long at $1.68

Jan 12

Alight ALIT is a cloud-based human capital technology provider that specializes in helping large organizations manage employee benefits, health, wealth, wellbeing, and related HR functions. It uses AI, data analytics, and personalized insights to improve employee experiences, boost engagement, and drive better outcomes for both employers and workers.

Technical Analysis:

• The stock price entered, for the second time, my historical "crash" simple moving average zone. This area (green lines) is often a key location for share accumulation during algorithmic trading. While the lowest band is currently near $1.30 and trending lower (i.e. this is likely not officially bottom), it's a key zone for traders to consider entry for a potential bounce while leaving the emotions and guesswork at the door. But nothing is for certain in the stock market.

Insiders:

• Significant buying and no selling through 2025: openinsider.com

Growth:

• Modest rise in earnings per share and revenue expected between 2026 and 2028: tradingview.com

Health:

• Debt-to-equity: 1x (just okay)
• Quick ratio / ability to pay today's bills: 1.2 (just okay)
• Altman's Z score / bankruptcy risk: 0.1 (high...)
• Fair value: $8.00

Action:

• While the price is at risk for heading into the low $1 range, I believe it is currently oversold based on the estimated fair value ($8), insider buying, and technical analysis. It's a risky play based on the financials and changing workforce, but it's a gamble that caught my attention. Thus, at $1.68, ALIT is in a personal buy zone /starter position with potential for further declines near $1 - $1.30 in the near-term. Time will tell.

Targets into 2029

1. $2.00 (+19.0%)
2. $3.00 (+78.6%)

Feb 19

Note

Added a major position at $0.75 for an average holding of $1.05.