Clover Health Investments (NASDAQ:CLOV) Trading Down 5.7% - Time to Sell?

Key Points

• Clover Health shares fell 5.7% to about $4.34 in Monday trading, with volume roughly 77% below its average.
• Analyst views remain mixed: the stock has a consensus rating of “Hold” and an average price target of $4.33, though Canaccord raised its target to $5.50 and UBS lifted its target to $5.00.
• Clover exceeded quarterly expectations, reporting $0.05 EPS versus $0.04 expected and revenue of $743.17 million versus $728.27 million. However, insiders sold 638,483 shares worth about $3.04 million over the past 90 days, primarily through pre-arranged plans to cover tax obligations.

Clover Health Investments, Corp. (NASDAQ:CLOV - Get Free Report)'s stock price traded down 5.7% during trading on Monday . The stock traded as low as $4.29 and last traded at $4.3380. Approximately 1,485,480 shares traded hands during trading, a decline of 77% from the average daily volume of 6,414,258 shares. The stock had previously closed at $4.60.

Analysts Set New Price Targets

CLOV has been the topic of a number of research reports. Canaccord Genuity Group raised their price objective on Clover Health Investments from $4.20 to $5.50 and gave the stock a "buy" rating in a report on Tuesday, July 21st. Wall Street Zen downgraded shares of Clover Health Investments from a "strong-buy" rating to a "buy" rating in a research report on Sunday. UBS Group raised their price target on shares of Clover Health Investments from $4.75 to $5.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Clover Health Investments in a research report on Wednesday, June 24th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Clover Health Investments presently has a consensus rating of "Hold" and an average price target of $4.33.

Clover Health Investments Stock Performance

The stock's fifty day moving average is $4.71 and its two-hundred day moving average is $3.24. The firm has a market capitalization of $2.25 billion, a price-to-earnings ratio of -84.88 and a beta of 2.48.

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 (EPS) for the quarter, topping analysts' consensus estimates of $0.04 by $0.01. Clover Health Investments had a negative net margin of 0.74% and a negative return on equity of 4.20%. The company had revenue of $743.17 million for the quarter, compared to the consensus estimate of $728.27 million.

Insider Transactions at Clover Health Investments

In other Clover Health Investments news, VP Joseph Frank Oldakowski sold 12,102 shares of the firm's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $4.86, for a total value of $58,815.72. Following the completion of the transaction, the vice president directly owned 299,067 shares in the company, valued at $1,453,465.62. This trade represents a 3.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available 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. Also, CEO Andrew Toy sold 87,798 shares of Clover Health Investments stock in a transaction on 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 owned 9,459,316 shares in the company, valued at $43,985,819.40. This represents a 0.92% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last 90 days, insiders have sold 638,483 shares of company stock valued at $3,035,848. Corporate insiders own 23.51% of the company's stock.

Institutional Investors Weigh In On Clover Health Investments

Institutional investors have recently modified their holdings of the stock. Alliancebernstein L.P. grew its holdings in Clover Health Investments by 1.2% during the third quarter. Alliancebernstein L.P. now owns 415,985 shares of the company's stock valued at $1,273,000 after purchasing an additional 5,085 shares during the last quarter. ProShare Advisors LLC raised its position in shares of Clover Health Investments by 8.2% during the fourth quarter. ProShare Advisors LLC now owns 74,700 shares of the company's stock valued at $176,000 after buying an additional 5,660 shares during the last quarter. Allworth Financial LP lifted its position in shares of Clover Health Investments by 218.9% in the 3rd 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. Verition Fund Management LLC boosted its stake in Clover Health Investments by 11.3% during the fourth quarter. Verition Fund Management LLC now owns 65,777 shares of the company's stock worth $155,000 after buying an additional 6,677 shares in the last quarter. Finally, Kestra Private Wealth Services LLC boosted its position in shares of Clover Health Investments by 44.1% during the 1st quarter. Kestra Private Wealth Services LLC now owns 24,525 shares of the company's stock valued at $43,000 after acquiring an additional 7,500 shares in the last quarter. 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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