Clover Health Investments (NASDAQ:CLOV) Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Clover Health Investments to “strong-buy” from “buy,” although the broader analyst consensus remains “Hold,” with an average price target of $4.33.
• Clover reported quarterly EPS of $0.05, exceeding the $0.04 consensus estimate, while revenue of $743.17 million also topped expectations of $728.27 million. The company nevertheless posted a negative net margin of 0.74% and negative return on equity of 4.35%.
• The stock opened at $4.76 and has traded between $1.58 and $5.59 over the past year; insiders sold 715,884 shares worth about $3.2 million over the last three months, while institutional investors own 19.77% of the shares.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued on Saturday.

Several other research analysts have also issued reports on CLOV. Canaccord Genuity Group upped their target price on shares of Clover Health Investments from $4.20 to $5.50 and gave the stock a "buy" rating in a research report on Tuesday, July 21st. Weiss Ratings restated a "sell (d-)" rating on shares of Clover Health Investments in a research report on Wednesday, June 24th. Finally, UBS Group lifted their price target on Clover Health Investments from $4.75 to $5.00 and gave the stock a "neutral" rating in a research note on Thursday. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $4.33.

Clover Health Investments Price Performance

Shares of Clover Health Investments stock opened at $4.76 on Friday. Clover Health Investments has a 1 year low of $1.58 and a 1 year high of $5.59. The firm has a market cap of $2.51 billion, a PE ratio of -95.18 and a beta of 2.47. The company has a 50 day simple moving average of $4.64 and a two-hundred day simple moving average of $3.17.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.05 EPS for the quarter, topping analysts' consensus estimates of $0.04 by $0.01. The business had revenue of $743.17 million during the quarter, compared to analysts' expectations of $728.27 million. Clover Health Investments had a negative net margin of 0.74% and a negative return on equity of 4.35%.

Insider Activity

In other news, CEO Andrew Toy sold 313,476 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $5.32, for a total value of $1,667,692.32. Following the completion of the sale, the chief executive officer directly owned 9,609,825 shares in the company, valued at approximately $51,124,269. The trade was a 3.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Brady Patrick Priest sold 98,039 shares of the company's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $3.52, for a total transaction of $345,097.28. Following the completion of the sale, the chief executive officer directly owned 2,040,222 shares of the company's stock, valued at $7,181,581.44. This trade represents a 4.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 715,884 shares of company stock valued at $3,202,372. Insiders own 23.51% of the company's stock.

Institutional Trading of Clover Health Investments

Institutional investors have recently added to or reduced their stakes in the business. Abel Hall LLC purchased a new position in shares of Clover Health Investments in the fourth quarter worth about $27,000. Allworth Financial LP boosted its holdings in Clover Health Investments by 218.9% during the 3rd quarter. Allworth Financial LP now owns 9,509 shares of the company's stock valued at $29,000 after acquiring an additional 6,527 shares during the period. Quadrature Capital Ltd purchased a new stake in Clover Health Investments during the 4th quarter valued at about $29,000. Schonfeld Strategic Advisors LLC bought a new position in Clover Health Investments during the 4th quarter worth approximately $29,000. Finally, Envestnet Asset Management Inc. bought a new position in Clover Health Investments during the 2nd quarter worth approximately $31,000. 19.77% of the stock is currently owned by hedge funds and other institutional investors.

About Clover Health Investments

Clover Health Investments is a technology-driven healthcare company specializing in Medicare Advantage plans for senior populations. The company combines insurance coverage with a proprietary software platform to improve care coordination, outcomes tracking and cost management. By leveraging data analytics, Clover Health aims to deliver personalized care pathways and preventive interventions for its members.

At the core of Clover's offering is its Clover Assistant platform, which aggregates clinical and claims data from multiple sources to create real-time insights for physicians and care teams.

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