Clover Health Investments (NASDAQ:CLOV) Releases Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Missed EPS: Clover reported $0.05 EPS vs. analysts' $0.07 estimate, missing by $0.02, and its stock traded at $2.68 with a market cap of about $1.41 billion.
• Strong growth and improving finances: Management said membership rose ~51% to ~156k and Q1 GAAP net income was $27M on $749M revenue (up 62%), with $160M consolidated gross profit and $418M cash/no debt, though they warned of elevated outpatient utilization and Part D normalization as near‑term headwinds.
• Insider and analyst activity: CEO Brady Patrick Priest sold 175,000 shares (an 8.05% reduction), insiders own ~24.1%, and analysts are mixed with a consensus "Hold" and a $2.90 target price.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.07 by ($0.02), Zacks reports. Clover Health Investments had a negative return on equity of 25.17% and a negative net margin of 4.45%.

Here are the key takeaways from Clover Health Investments' conference call:

• Simultaneous growth and profitability: Membership rose ~51% year-over-year to ~156k and Q1 GAAP net income was $27M on $749M revenue (up 62%), showing the company scaled while turning a profit.
• Differentiated, full‑risk model and data/AI edge: Clover retains full economics on a wide‑network PPO and is leveraging Clover Assistant plus early access to CMS‑aligned network data to drive AI‑driven care and cohort improvement.
• Clinical engagement is scaling: Over one‑third of members received Clover Assistant care and home‑care enrollments rose ~90% year‑over‑year, which management says is driving better inpatient trends and cohort outcomes.
• Improving unit economics and balance sheet: Q1 consolidated gross profit was $160M, insurance BER 86.5%, adjusted SG&A 16% of revenue (200 bps improvement), $418M cash and no debt, supporting self‑funded growth.
• Near‑term headwinds to monitor: Outpatient utilization remains elevated, Part D normalization and some prior‑period unfavorable development require close monitoring, and management intentionally moderated OEP growth to prioritize integration.

Clover Health Investments Stock Performance

CLOV stock traded up $0.07 during trading on Wednesday, reaching $2.68. The company had a trading volume of 5,166,919 shares, compared to its average volume of 5,274,036. The firm has a 50-day simple moving average of $2.07 and a 200-day simple moving average of $2.39. The company has a market cap of $1.41 billion, a price-to-earnings ratio of -15.76 and a beta of 2.44. Clover Health Investments has a twelve month low of $1.58 and a twelve month high of $3.92.

Insider Buying and Selling

In other Clover Health Investments news, CEO Brady Patrick Priest sold 175,000 shares of Clover Health Investments stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $2.17, for a total transaction of $379,750.00. Following the completion of the sale, the chief executive officer directly owned 1,998,584 shares in the company, valued at approximately $4,336,927.28. The trade was a 8.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 24.07% of the stock is owned by company insiders.

Institutional Trading of Clover Health Investments

Several institutional investors and hedge funds have recently bought and sold shares of the business. Virtu Financial LLC lifted its stake in Clover Health Investments by 532.9% during the 4th quarter. Virtu Financial LLC now owns 209,204 shares of the company's stock valued at $492,000 after acquiring an additional 176,150 shares during the period. Tudor Investment Corp ET AL acquired a new stake in Clover Health Investments during the 4th quarter valued at approximately $458,000. Quadrature Capital Ltd acquired a new stake in Clover Health Investments during the 4th quarter valued at approximately $29,000. Schonfeld Strategic Advisors LLC acquired a new stake in Clover Health Investments during the 4th quarter valued at approximately $29,000. Finally, Abel Hall LLC acquired a new stake in Clover Health Investments during the 4th quarter valued at approximately $27,000. 19.77% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on CLOV. Canaccord Genuity Group lowered their target price on shares of Clover Health Investments from $3.70 to $3.20 and set a "buy" rating for the company in a research note on Friday, March 20th. Leerink Partners lowered their target price on shares of Clover Health Investments from $3.00 to $2.50 and set a "market perform" rating for the company in a research note on Thursday, March 5th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Clover Health Investments in a research note on Friday, March 27th. Finally, Wall Street Zen upgraded shares of Clover Health Investments from a "sell" rating to a "hold" rating in a research note on Sunday, February 15th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $2.90.

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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