Investors Purchase High Volume of Call Options on Clover Health Investments (NASDAQ:CLOV)

Key Points

• Unusually heavy call buying: Traders purchased 43,668 call options on CLOV on Tuesday—an ~81% increase versus typical daily volume—which coincided with the stock rising 7.4% to $2.40 on above-average share volume.
• CEO insider sale: CEO Brady Patrick Priest sold 175,000 shares at about $2.17 (≈$379,750), reducing his ownership by 8.05%, while insiders collectively still own 24.07% of the company.
• Mixed analyst and financial signals: The stock carries an average "Hold" rating with a $2.90 target; recent results missed EPS (‑$0.10 vs. ‑$0.05 estimate) but beat revenue ($487.7M), and the company remains unprofitable.

Clover Health Investments, Corp. (NASDAQ:CLOV - Get Free Report) saw unusually large options trading on Tuesday. Stock traders purchased 43,668 call options on the stock. This represents an increase of approximately 81% compared to the typical daily volume of 24,110 call options.

Wall Street Analysts Forecast Growth

CLOV has been the subject of a number of analyst reports. Leerink Partners cut their price objective on shares of Clover Health Investments from $3.00 to $2.50 and set a "market perform" rating for the company in a research report on Thursday, March 5th. Weiss Ratings restated a "sell (d-)" rating on shares of Clover Health Investments in a research report on Friday, March 27th. Wall Street Zen raised shares of Clover Health Investments from a "sell" rating to a "hold" rating in a research note on Sunday, February 15th. Finally, Canaccord Genuity Group cut their price target on Clover Health Investments from $3.70 to $3.20 and set a "buy" rating for the company in a report on Friday, March 20th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $2.90.

Insider Transactions at Clover Health Investments

In related news, CEO Brady Patrick Priest sold 175,000 shares of the company's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $2.17, for a total transaction of $379,750.00. Following the transaction, the chief executive officer owned 1,998,584 shares of the company's stock, valued at $4,336,927.28. This represents a 8.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 24.07% of the company's stock.

Hedge Funds Weigh In On Clover Health Investments

A number of hedge funds have recently added to or reduced their stakes in the business. Kestra Private Wealth Services LLC boosted its stake in Clover Health Investments by 44.1% in the first 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 during the period. RFG Advisory LLC acquired a new stake in shares of Clover Health Investments during the 1st quarter worth approximately $35,000. SG Americas Securities LLC lifted its holdings in shares of Clover Health Investments by 143.5% in the 1st quarter. SG Americas Securities LLC now owns 143,759 shares of the company's stock worth $253,000 after purchasing an additional 84,713 shares during the last quarter. Ketron Financial bought a new stake in shares of Clover Health Investments in the 4th quarter worth approximately $39,000. Finally, Virtu Financial LLC boosted its position 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 purchasing an additional 176,150 shares during the period. Institutional investors and hedge funds own 19.77% of the company's stock.

Clover Health Investments Stock Up 7.4%

Shares of Clover Health Investments stock traded up $0.17 during trading hours on Tuesday, hitting $2.40. The company's stock had a trading volume of 6,029,060 shares, compared to its average volume of 5,795,271. The business has a fifty day moving average of $1.97 and a 200 day moving average of $2.40. Clover Health Investments has a 1-year low of $1.58 and a 1-year high of $3.92. The company has a market capitalization of $1.26 billion, a PE ratio of -14.03 and a beta of 2.24.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.10) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.05). Clover Health Investments had a negative return on equity of 25.17% and a negative net margin of 4.45%.The company had revenue of $487.71 million for the quarter, compared to analyst estimates of $467.06 million. On average, sell-side analysts anticipate that Clover Health Investments will post -0.02 earnings per share for the current fiscal year.

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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