Alight Faces Significant Analyst Downgrade: ALIT Valuation Slashed to $5.44

Recent analyst consensus has brought challenging news for Alight (NYSE: ALIT) shareholders. The collective one-year valuation estimate has been trimmed substantially to $5.44 per share, marking a sharp 24.71% reduction from the previous forecast of $7.22 issued on November 7, 2025. Individual analyst projections currently span a wide range, with estimates between $4.04 at the lower end and $6.82 at the upper boundary. Despite the downward revision, the consensus still implies considerable upside potential—the $5.44 target represents a 138.60% gain above ALIT’s most recent closing price of $2.28 per share.

Institutional Positioning Strengthens Despite Price Pressures

The institutional investor landscape surrounding Alight reveals mixed signals. Currently, 532 funds and institutions maintain reported positions in the stock, a net addition of 31 investors (6.19% growth) within the most recent quarter. Average institutional portfolio allocation to ALIT stands at 0.40%, reflecting a 13.29% increase from prior levels. However, total shares held by these institutions declined by 5.71% to 593,251K shares over the three-month period, suggesting some profit-taking despite new entrants to the investor base. The put/call ratio of 0.05 indicates that options traders maintain a decidedly optimistic stance on the company’s near-term prospects.

Major Shareholders Navigate Divergent Strategies

Starboard Value remains the largest disclosed shareholder with 45,866K shares (8.77% stake), maintaining flat positioning. Cannae Holdings holds the second-largest position at 40,477K shares (7.74%), also unchanged sequentially. Fidelity National Financial’s 22,300K share position (4.27%) similarly shows no quarterly movement.

More notably, Glenview Capital Management reduced exposure meaningfully, cutting holdings from 24,382K shares to 20,378K shares—a 19.65% contraction. The firm’s proportional commitment to ALIT declined even more sharply by 61.75%, indicating a deliberate de-emphasis within its broader portfolio strategy. Conversely, Cooper Creek Partners Management increased absolute holdings by 6.19% (from 17,981K to 19,168K shares), though this expansion coincided with a 39.22% relative allocation reduction, suggesting the gain reflected broader market movements rather than fresh conviction.

These institutional maneuvers underscore the complex sentiment surrounding ALIT, where contracting valuations compete with selective investor participation in shaping the stock’s trajectory.