Oscar Health (NYSE:OSCR) Shares Down 5.7% - Here's What Happened

Key Points

• Oscar Health shares fell 5.7% on Thursday, trading as low as $22.20 after closing at $23.42, with volume below its daily average.
• The company recently beat EPS expectations with $2.07 per share, but revenue of $4.65 billion came in below estimates and net margin remained negative.
• Analyst sentiment is mixed: several firms raised price targets or upgraded the stock, but the overall consensus remains Hold with an average price target of $18.22.

Oscar Health, Inc. (NYSE:OSCR - Get Free Report)'s stock price dropped 5.7% during trading on Thursday . The company traded as low as $22.20 and last traded at $22.0910. Approximately 4,364,356 shares were traded during trading, a decline of 45% from the average daily volume of 7,907,845 shares. The stock had previously closed at $23.42.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Zacks Research raised shares of Oscar Health from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 7th. Robert W. Baird raised their price target on shares of Oscar Health from $15.00 to $19.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. UBS Group boosted their price objective on shares of Oscar Health from $15.00 to $20.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Wolfe Research assumed coverage on Oscar Health in a report on Tuesday, May 5th. They set a "peer perform" rating on the stock. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Oscar Health in a research report on Tuesday, April 21st. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $18.22.

Oscar Health Stock Performance

The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.11 and a current ratio of 1.11. The company has a market cap of $6.67 billion, a price-to-earnings ratio of -37.48, a PEG ratio of 1.71 and a beta of 2.34. The firm's 50-day moving average price is $16.13 and its 200 day moving average price is $15.52.

Oscar Health (NYSE:OSCR - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $2.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.11 by $0.96. Oscar Health had a negative net margin of 0.30% and a negative return on equity of 3.26%. The firm had revenue of $4.65 billion for the quarter, compared to analysts' expectations of $4.90 billion. During the same period last year, the firm earned $0.92 earnings per share. The business's revenue for the quarter was up 52.6% on a year-over-year basis. On average, sell-side analysts anticipate that Oscar Health, Inc. will post 0.47 EPS for the current year.

Insider Buying and Selling at Oscar Health

In related news, CEO Mark T. Bertolini acquired 1,000,000 shares of the firm's stock in a transaction that occurred on Monday, April 6th. The stock was acquired at an average cost of $11.92 per share, with a total value of $11,920,000.00. Following the completion of the purchase, the chief executive officer directly owned 10,196,876 shares in the company, valued at approximately $121,546,761.92. This trade represents a 10.87% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Richard Scott Blackley sold 100,000 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $23.16, for a total value of $2,316,000.00. Following the completion of the sale, the chief financial officer owned 1,216,660 shares of the company's stock, valued at $28,177,845.60. This represents a 7.59% 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. 24.39% of the stock is owned by company insiders.

Institutional Trading of Oscar Health

A number of hedge funds have recently modified their holdings of the company. BIT Capital GmbH increased its holdings in shares of Oscar Health by 545.0% in the fourth quarter. BIT Capital GmbH now owns 6,186,267 shares of the company's stock worth $88,897,000 after acquiring an additional 5,227,152 shares in the last quarter. American Century Companies Inc. lifted its holdings in shares of Oscar Health by 89.0% during the 3rd quarter. American Century Companies Inc. now owns 5,298,340 shares of the company's stock valued at $100,298,000 after purchasing an additional 2,495,691 shares in the last quarter. Farallon Capital Management LLC lifted its holdings in shares of Oscar Health by 146.5% during the 3rd quarter. Farallon Capital Management LLC now owns 3,639,000 shares of the company's stock valued at $68,886,000 after purchasing an additional 2,163,000 shares in the last quarter. Morgan Stanley grew its position in shares of Oscar Health by 42.8% in the 4th quarter. Morgan Stanley now owns 6,814,046 shares of the company's stock valued at $97,918,000 after purchasing an additional 2,043,758 shares during the period. Finally, Bank of America Corp DE grew its position in shares of Oscar Health by 205.1% in the 1st quarter. Bank of America Corp DE now owns 2,860,310 shares of the company's stock valued at $32,808,000 after purchasing an additional 1,922,732 shares during the period. 75.70% of the stock is currently owned by institutional investors and hedge funds.

Oscar Health Company Profile

Oscar Health, trading on the New York Stock Exchange under the ticker OSCR, is a technology-driven health insurance company headquartered in New York, New York. Founded in 2012 by Mario Schlosser, Joshua Kushner and Kevin Nazemi, the company was built with the goal of simplifying healthcare coverage and enhancing member experience. Oscar leverages a proprietary digital platform to streamline plan enrollment, claims administration and member support, distinguishing itself in the individual, family and small group insurance markets.

The company's primary products include on-exchange individual and family medical plans under the Affordable Care Act, off-exchange plans, as well as Medicare Advantage offerings.

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