Clover Health Investments (NASDAQ:CLOV) Shares Gap Down After Analyst Downgrade

Key Points

• Shares of Clover Health Investments gapped down from $2.85 to $2.33 after UBS Group lowered their price target from $4.50 to $3.00, currently maintaining a neutral rating.
• CEO Conrad Wai sold 91,197 shares for approximately $302,774, reducing his stake by 6.10% while insiders own 24.07% of the company's stock.
• Institutional investors have increased their holdings, with Rhumbline Advisers boosting its stake by 80.5%, alongside several other firms purchasing new stakes in the company.

Clover Health Investments, Corp. (NASDAQ:CLOV - Get Free Report) shares gapped down prior to trading on Wednesday after Canaccord Genuity Group lowered their price target on the stock from $4.50 to $4.10. The stock had previously closed at $2.85, but opened at $2.33. Canaccord Genuity Group currently has a buy rating on the stock. Clover Health Investments shares last traded at $2.29, with a volume of 8,152,461 shares traded.

Separately, UBS Group cut their price objective on shares of Clover Health Investments from $4.50 to $3.00 and set a "neutral" rating for the company in a research report on Wednesday.

Insider Buying and Selling at Clover Health Investments

In related news, CEO Conrad Wai sold 118,600 shares of the business's stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $3.29, for a total value of $390,194.00. Following the sale, the chief executive officer directly owned 1,494,898 shares in the company, valued at approximately $4,918,214.42. The trade was a 7.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 24.07% of the company's stock.

Institutional Investors Weigh In On Clover Health Investments

A number of institutional investors have recently modified their holdings of the company. Phoenix Financial Ltd. raised its holdings in Clover Health Investments by 6.8% in the fourth quarter. Phoenix Financial Ltd. now owns 39,000 shares of the company's stock valued at $123,000 after acquiring an additional 2,500 shares in the last quarter. Rhumbline Advisers grew its stake in shares of Clover Health Investments by 80.5% during the 1st quarter. Rhumbline Advisers now owns 7,085 shares of the company's stock worth $25,000 after purchasing an additional 3,160 shares during the period. Janney Montgomery Scott LLC increased its holdings in shares of Clover Health Investments by 21.7% in the 2nd quarter. Janney Montgomery Scott LLC now owns 24,860 shares of the company's stock valued at $69,000 after purchasing an additional 4,426 shares in the last quarter. ADAR1 Capital Management LLC lifted its stake in shares of Clover Health Investments by 21.5% in the first quarter. ADAR1 Capital Management LLC now owns 28,300 shares of the company's stock valued at $102,000 after purchasing an additional 5,000 shares during the period. Finally, Parallax Volatility Advisers L.P. boosted its holdings in Clover Health Investments by 47.7% during the fourth quarter. Parallax Volatility Advisers L.P. now owns 19,855 shares of the company's stock worth $63,000 after buying an additional 6,408 shares in the last quarter. 19.77% of the stock is owned by institutional investors and hedge funds.

Clover Health Investments Price Performance

The firm's 50-day simple moving average is $2.92 and its two-hundred day simple moving average is $3.50. The company has a market capitalization of $1.10 billion, a price-to-earnings ratio of -26.94 and a beta of 1.91.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) last issued its quarterly earnings data on Tuesday, May 6th. The company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.12. The firm had revenue of $462.33 million during the quarter, compared to analysts' expectations of $466.93 million. Clover Health Investments had a negative return on equity of 12.24% and a negative net margin of 2.68%. On average, analysts expect that Clover Health Investments, Corp. will post -0.12 EPS for the current fiscal year.

Clover Health Investments Company Profile

Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat.