By Ben Glickman
Shares of Alignment Healthcare rose Monday after the insurance company retained its 4-star rating from the Centers for Medicare & Medicaid Services on its largest coverage plan.
The stock rose 21%, to $7.99, in midday trading. Shares are down 32% this year.
Orange, Calif.-based Alignment Healthcare received a 4-star rating on its H3815 plan, which covers around 90% of its members, in CMS 2024 star ratings released Friday.
Raymond James analyst John Ransom says in a research note that there were investor fears of the plan dropping below the 3.5-star mark. He says that concerns about the company’s star ratings has held the stock back.
He upgrades the shares to strong buy and raises the price target, given the lifting of star-rating concerns and the controlling of member costs.
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