Oscar Health (NYSE:OSCR) Stock Rating Lowered by Wall Street Zen

Key Points

• Oscar Health was downgraded by Wall Street Zen from “strong-buy” to “buy,” while the broader analyst view remains cautious with a consensus rating of Hold and an average price target of $20.22.
• The company recently reported strong quarterly earnings, posting EPS of $2.07 versus expectations of $1.11, even though revenue of $4.65 billion missed estimates and margins remained negative.
• Shares were up 4.2% to $24.59, near the stock’s 52-week high, while recent insider selling by executives and directors was largely tied to pre-planned 10b5-1 transactions for tax withholding on vested awards.

Oscar Health (NYSE:OSCR - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

A number of other analysts also recently commented on OSCR. Wells Fargo & Company set a $20.00 price target on Oscar Health and gave the company an "equal weight" rating in a research report on Thursday. UBS Group increased their price target on Oscar Health from $15.00 to $20.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Raymond James Financial raised Oscar Health from a "market perform" rating to an "outperform" rating and set a $18.00 price target for the company in a research report on Thursday, February 12th. Wolfe Research began coverage on Oscar Health in a research report on Tuesday, May 5th. They set a "peer perform" rating for the company. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Oscar Health in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Oscar Health currently has a consensus rating of "Hold" and an average price target of $20.22.

Oscar Health Stock Up 4.2%

OSCR stock opened at $24.59 on Friday. Oscar Health has a twelve month low of $10.69 and a twelve month high of $25.58. The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 0.26. The stock's 50 day moving average is $18.39 and its 200-day moving average is $16.06. The firm has a market capitalization of $7.41 billion, a PE ratio of -41.68, a P/E/G ratio of 1.65 and a beta of 2.37.

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

Insiders Place Their Bets

In other Oscar Health news, insider Adam Mcananey sold 9,859 shares of the firm's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $21.94, for a total value of $216,306.46. Following the completion of the sale, the insider directly owned 218,096 shares of the company's stock, valued at $4,785,026.24. This trade represents a 4.32% decrease in their ownership of the stock. The transaction 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, insider Janet Liang sold 12,475 shares of the firm's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $21.94, for a total value of $273,701.50. Following the completion of the sale, the insider directly owned 259,057 shares of the company's stock, valued at $5,683,710.58. This represents a 4.59% decrease in their ownership of the stock. 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. Over the last ninety days, insiders sold 189,660 shares of company stock valued at $4,283,140. Company insiders own 24.39% of the company's stock.

Institutional Trading of Oscar Health

Large investors have recently bought and sold shares of the company. Jones Financial Companies Lllp increased its position in Oscar Health by 7,473.3% in the first quarter. Jones Financial Companies Lllp now owns 2,272 shares of the company's stock worth $30,000 after buying an additional 2,242 shares during the last quarter. Strs Ohio purchased a new stake in Oscar Health in the first quarter worth $30,000. Fifth Third Bancorp increased its position in Oscar Health by 148.7% in the fourth quarter. Fifth Third Bancorp now owns 2,363 shares of the company's stock worth $34,000 after buying an additional 1,413 shares during the last quarter. Quarry LP increased its position in Oscar Health by 439.8% in the third quarter. Quarry LP now owns 1,803 shares of the company's stock worth $34,000 after buying an additional 1,469 shares during the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. purchased a new position in shares of Oscar Health in the first quarter valued at $49,000. 75.70% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Oscar Health

Here are the key news stories impacting Oscar Health this week:

• Positive Sentiment: Wells Fargo upgraded Oscar Health from “strong sell” to “hold”, easing bearish sentiment even though its $20 target remains below the current share price. Zacks.com
• Positive Sentiment: Oscar Health’s recent earnings showed a major EPS beat, which supports the stock’s fundamental story despite revenue coming in below estimates.
• Neutral Sentiment: A company co-founder shifting into an advisory leadership role looks like an internal reorganization rather than a disruptive change. Oscar Health Co-Founder Shifts to Advisory Leadership Role
• Neutral Sentiment: Multiple insiders, including CFO Richard Scott Blackley and CAO Victoria Baltrus, sold shares under pre-planned 10b5-1 programs to cover tax obligations on vested equity awards, which is less concerning than discretionary selling.
• Negative Sentiment: Director Mario Schlosser sold 34,120 shares, the largest insider sale in the latest batch, which may pressure sentiment even though it was pre-arranged.

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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