Health insurance company, Oscar Health Inc. (NYSE:OSCR) is up 6.69% in after-hours trading on Thursday, at $18.04 per share.
The company, founded by Joshua Kushner and backed by his brother Jared Kushner, who is also the son-in-law and former senior advisor to President Donald Trump, was up 2.55% during the regular session on Thursday, closing at $16.90 per share, according to Benzinga Pro data.
Affordable Care Act Extension Sparks Rally
This sharp spike in the stock comes after the U.S. House of Representatives passed the bill extending healthcare subsidies under the Affordable Care Act for three more years.
The bill is expected to curb surging health insurance premiums for millions of Americans while materially improving the outlook for insurers such as Oscar Health, whose business is far more dependent on the individual ACA exchange market than larger, more diversified rivals like UnitedHealth Group Inc. (NYSE:UNH).
Without the extension, Oscar’s members would have faced sharply higher premiums, pushing even healthy subscribers to abandon coverage and putting the company’s entire business model at risk.
Analyst Upgrade
Oscar’s shares are up 16.71% year-to-date, building on momentum from earlier this week after Barclays upgraded the stock to “Equal-Weight” from “Underweight” and raised its price target to $18 per share from $13.
The stock performs poorly in terms of momentum in Benzinga’s Edge Stock Rankings, but exhibits a favorable price trend in both the short and long terms. Click here for deeper insights into the stock, and see how it compares against peers such as UnitedHealth Group.
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