Clover Health Investments (NASDAQ:CLOV) Shares Gap Up - Still a Buy?

Key Points

• Clover Health shares gapped up from a prior close of $4.34 to open at $4.48, later trading near $4.70. The stock has a $2.52 billion market capitalization and a high beta of 2.47.
• Analyst sentiment remains mixed: Deutsche Bank initiated coverage with a Buy rating and $6 price target, while the broader consensus is Hold with an average target of $4.75.
• Clover exceeded quarterly expectations, reporting $0.05 earnings per share versus a $0.04 estimate and revenue of $743.17 million versus $728.27 million expected. Insiders sold 418,057 shares worth approximately $2.16 million over the last quarter, though the sales were conducted under pre-arranged plans to cover tax obligations.

Clover Health Investments, Corp. (NASDAQ:CLOV - Get Free Report)'s stock price gapped up before the market opened on Thursday . The stock had previously closed at $4.34, but opened at $4.48. Clover Health Investments shares last traded at $4.6950, with a volume of 1,470,484 shares traded.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on CLOV. Deutsche Bank Aktiengesellschaft started coverage on shares of Clover Health Investments in a research report on Thursday. They issued a "buy" rating and a $6.00 price objective for the company. Canaccord Genuity Group increased their price target on shares of Clover Health Investments from $4.20 to $5.50 and gave the company a "buy" rating in a research note on Tuesday, July 21st. Wall Street Zen lowered shares of Clover Health Investments from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 16th. UBS Group boosted their price objective on shares of Clover Health Investments from $4.75 to $5.00 and gave the stock a "neutral" rating in a research report on Thursday, August 6th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Clover Health Investments in a report on Wednesday, June 24th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $4.75.

Clover Health Investments Price Performance

The company's 50 day simple moving average is $4.45 and its 200 day simple moving average is $3.51. The stock has a market cap of $2.52 billion, a P/E ratio of -94.88 and a beta of 2.47.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.05 earnings per share 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 analysts' expectations of $728.27 million.

Insider Activity

In other Clover Health Investments news, VP Joseph Frank Oldakowski sold 12,102 shares of the business's stock in a transaction dated Tuesday, June 16th. The stock was 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 of the company's stock, valued at approximately $1,453,465.62. The trade was a 3.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 313,476 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $5.32, for a total value of $1,667,692.32. Following the completion of the sale, the chief executive officer owned 9,609,825 shares of the company's stock, valued at $51,124,269. This trade represents a 3.16% 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 quarter, insiders have sold 418,057 shares of company stock worth $2,156,348. Corporate insiders own 23.51% of the company's stock.

Hedge Funds Weigh In On Clover Health Investments

Several institutional investors and hedge funds have recently modified their holdings of CLOV. Tidal Investments LLC acquired a new stake in Clover Health Investments during the 2nd quarter worth approximately $2,156,000. WINTON GROUP Ltd bought a new stake in shares of Clover Health Investments during the second quarter worth $913,000. Nykredit A S bought a new stake in shares of Clover Health Investments during the second quarter worth $45,000. California State Teachers Retirement System raised its holdings in shares of Clover Health Investments by 387.2% during the second quarter. California State Teachers Retirement System now owns 2,421,577 shares of the company's stock worth $12,689,000 after acquiring an additional 1,924,571 shares during the period. Finally, AXQ Capital LP raised its holdings in shares of Clover Health Investments by 602.6% during the second quarter. AXQ Capital LP now owns 146,569 shares of the company's stock worth $768,000 after acquiring an additional 125,708 shares during the period. 19.77% of the stock is currently owned by institutional investors and hedge funds.

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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