Clover Health Investments (NASDAQ:CLOV) Shares Gap Up - Here's Why

Key Points

• Clover Health shares surged 17.8%, opening at $4.89 versus a prior close of $4.14 and later trading near $5.04. The stock’s market capitalization was approximately $2.57 billion.
• Analyst sentiment remains mixed: Canaccord Genuity raised its price target to $5.50 and maintained a buy rating, while UBS reiterated neutral and Weiss Ratings maintained a sell rating. The consensus rating is Hold, with an average price target of $4.25.
• The company’s latest quarter included revenue of $749.19 million, above expectations, but earnings per share of $0.05 missed the $0.07 consensus estimate. Insiders have sold 715,884 shares worth about $3.2 million over the past 90 days.

Clover Health Investments, Corp. (NASDAQ:CLOV - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $4.14, but opened at $4.89. Clover Health Investments shares last traded at $5.0350, with a volume of 2,976,872 shares.

Wall Street Analyst Weigh In

CLOV has been the topic of a number of analyst reports. Weiss Ratings restated a "sell (d-)" rating on shares of Clover Health Investments in a report on Wednesday, June 24th. Wall Street Zen upgraded shares of Clover Health Investments from a "hold" rating to a "buy" rating in a research note on Saturday, June 6th. Canaccord Genuity Group increased their target price on Clover Health Investments from $4.20 to $5.50 and gave the company a "buy" rating in a report on Tuesday, July 21st. Finally, UBS Group reissued a "neutral" rating on shares of Clover Health Investments in a report on Thursday. 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 company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $4.25.

Clover Health Investments Stock Up 17.8%

The firm has a fifty day simple moving average of $4.62 and a 200-day simple moving average of $3.14. The company has a market cap of $2.57 billion, a PE ratio of -40.70 and a beta of 2.47.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.02). The firm had revenue of $749.19 million during the quarter, compared to analysts' expectations of $714.89 million. Clover Health Investments had a negative net margin of 2.58% and a negative return on equity of 16.52%.

Insider Activity at Clover Health Investments

In other news, Director Carladenise Armbrister Edwards sold 67,160 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $3.42, for a total value of $229,687.20. Following the completion of the sale, the director directly owned 285,432 shares of the company's stock, valued at approximately $976,177.44. This represents a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Andrew Toy sold 313,476 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $5.32, for a total transaction of $1,667,692.32. Following the transaction, the chief executive officer owned 9,609,825 shares in the company, valued at approximately $51,124,269. This trade represents a 3.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold a total of 715,884 shares of company stock valued at $3,202,372 over the last 90 days. 23.51% of the stock is owned by insiders.

Institutional Trading of Clover Health Investments

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in shares of Clover Health Investments by 1.8% in the fourth quarter. Vanguard Group Inc. now owns 23,485,912 shares of the company's stock valued at $55,192,000 after buying an additional 425,904 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Clover Health Investments by 0.7% during the fourth quarter. Geode Capital Management LLC now owns 9,791,208 shares of the company's stock worth $23,013,000 after buying an additional 70,801 shares during the last quarter. State Street Corp grew its holdings in shares of Clover Health Investments by 4.1% during the fourth quarter. State Street Corp now owns 9,320,183 shares of the company's stock worth $21,902,000 after buying an additional 368,507 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in Clover Health Investments by 9.8% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 4,690,904 shares of the company's stock valued at $11,024,000 after acquiring an additional 419,389 shares during the period. Finally, Bank of America Corp DE increased its position in Clover Health Investments by 217.5% in the 2nd quarter. Bank of America Corp DE now owns 4,012,744 shares of the company's stock valued at $11,196,000 after acquiring an additional 2,748,783 shares during the period. 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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