Alignment Healthcare Shares Rebound 7% After 13% Friday Drop

Alignment Healthcare (ALHC) shares rose 7% to $8.09 on Oct. 12, recovering part of a 13% slide after the insurer disclosed mixed Medicare Advantage Star Ratings results.

The stock gained 54 cents during Monday’s session. Friday’s selloff followed Alignment Healthcare’s disclosure of mixed Star Ratings results from the Centers for Medicare & Medicaid Services.

One of Alignment Healthcare’s major California Medicare Advantage contracts fell to 3.5 stars from 4 stars. The rating change was followed by BofA Securities cutting its rating on Alignment Healthcare to Neutral from Buy and reducing its price target to $9 from $25.