Alignment Healthcare Shares Soar 6.34% on CMS Rate Hike

Alignment Healthcare (ALHC) shares surged 6.34% today, reaching their highest level since November 2021, with an intraday gain of 18.18%.

Stifel analysts have raised their price target for Alignment Healthcare to $23, up from the previous $18. This adjustment reflects a growing optimism about the company's future prospects and performance. The analysts' positive outlook is likely to have influenced investor sentiment, contributing to the recent surge in the stock price.

The CMS Final Rate Notice for 2026, which announced higher-than-expected rates for Medicare Advantage plans, has also played a significant role in the stock's movement. This positive update is expected to benefit companies in the managed care sector, including Alignment Healthcare, as it indicates a more favorable regulatory environment for Medicare Advantage plans.

Additionally, the U.S. Centers for Medicare & Medicaid Services (CMS) released a payment update for Medicare Advantage plans, projecting a 5.06% increase from 2025 to 2026. This projection is notably higher than previous estimates and is seen as a positive trend for companies like Alignment Healthcare, which are involved in value-based care. The increase in payment rates is expected to enhance the financial performance of managed care organizations, further boosting investor confidence in Alignment Healthcare.