Clover Health Investments (NASDAQ:CLOV) Shares Down 4.7% After Insider Selling

Key Points

• Clover Health shares fell 4.7% to $4.355 after CEO Andrew Toy sold 87,798 shares for approximately $408,261. The sale was conducted under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards.
• Analyst sentiment remains mixed: the stock carries a consensus “Hold” rating and a $4.33 price target, although Canaccord Genuity and UBS recently raised their targets to $5.50 and $5.00, respectively.
• Clover’s latest quarterly results exceeded expectations, with earnings of $0.05 per share versus the $0.04 estimate and revenue of $743.17 million versus $728.27 million expected. Despite the earnings beat, the company reported a negative net margin and return on equity.

Clover Health Investments, Corp. (NASDAQ:CLOV - Get Free Report)'s stock price dropped 4.7% on Tuesday after an insider sold shares in the company. The stock traded as low as $4.36 and last traded at $4.3550. 512,986 shares changed hands during trading, a decline of 92% from the average session volume of 6,471,942 shares. The stock had previously closed at $4.57.

Specifically, CEO Andrew Toy sold 87,798 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $4.65, for a total value of $408,260.70. Following the transaction, the chief executive officer directly owned 9,459,316 shares of the company's stock, valued at $43,985,819.40. This represents a 0.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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.

Wall Street Analyst Weigh In

CLOV has been the subject of several research reports. Wall Street Zen raised Clover Health Investments from a "buy" rating to a "strong-buy" rating in a report on Saturday. Canaccord Genuity Group upped their price target on shares of Clover Health Investments from $4.20 to $5.50 and gave the stock a "buy" rating in a 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 raised their target price on shares of Clover Health Investments from $4.75 to $5.00 and gave the company a "neutral" rating in a research report on Thursday. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $4.33.

Clover Health Investments Stock Performance

The stock has a market capitalization of $2.31 billion, a P/E ratio of -87.88 and a beta of 2.48. The business has a fifty day simple moving average of $4.66 and a 200-day simple moving average of $3.19.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.01. The firm had revenue of $743.17 million during the quarter, compared to the consensus estimate of $728.27 million. Clover Health Investments had a negative net margin of 0.74% and a negative return on equity of 4.35%.

Institutional Trading of Clover Health Investments

Several hedge funds have recently bought and sold shares of the business. Abel Hall LLC bought a new stake in shares of Clover Health Investments during the fourth quarter worth about $27,000. Allworth Financial LP raised its position in Clover Health Investments by 218.9% in the third quarter. Allworth Financial LP now owns 9,509 shares of the company's stock worth $29,000 after acquiring an additional 6,527 shares during the period. Quadrature Capital Ltd purchased a new position in Clover Health Investments in the fourth quarter valued at approximately $29,000. Schonfeld Strategic Advisors LLC bought a new position in shares of Clover Health Investments during the 4th quarter worth $29,000. Finally, Envestnet Asset Management Inc. bought a new position in Clover Health Investments during the second quarter worth about $31,000. Institutional investors and hedge funds own 19.77% of the company's stock.

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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