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

Key Points

• Clover Health shares jumped, opening at $5.17 versus a prior close of $4.58, before trading near $4.87. The stock’s market capitalization was about $2.52 billion, with shares trading above both their 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: two analysts rate CLOV a Buy, three rate it Hold, and one rates it Sell. MarketBeat reports a consensus rating of Hold and an average price target of $4.75.
• Clover exceeded quarterly expectations, reporting $0.05 in EPS versus a $0.04 estimate and revenue of $743.17 million versus $728.27 million expected. However, insiders sold 736,620 shares worth about $3.31 million over the past three months, while institutional ownership stands at 19.77%.

Clover Health Investments, Corp. (NASDAQ:CLOV - Get Free Report)'s stock price gapped up prior to trading on Friday. The stock had previously closed at $4.58, but opened at $5.17. Clover Health Investments shares last traded at $4.87, with a volume of 2,404,862 shares.

Wall Street Analyst Weigh In

CLOV has been the topic of several recent research reports. Canaccord Genuity Group increased their target price on Clover Health Investments from $4.20 to $5.50 and gave the company a "buy" rating in a research report on Tuesday, July 21st. Weiss Ratings restated a "sell (d-)" rating on shares of Clover Health Investments in a research note on Monday, September 21st. Zacks Research raised Clover Health Investments to a "hold" rating in a research report on Monday, September 14th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Clover Health Investments in a report on Thursday, September 10th. They issued a "buy" rating and a $6.00 target price for the company. Finally, UBS Group increased their price target on shares of Clover Health Investments from $4.75 to $5.00 and gave the company a "neutral" rating in a research report on Thursday, August 6th. Two investment analysts have 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, Clover Health Investments currently has a consensus rating of "Hold" and an average target price of $4.75.

Clover Health Investments Trading Up 3.4%

The company's 50-day moving average is $4.41 and its 200 day moving average is $3.88. The stock has a market capitalization of $2.52 billion, a PE ratio of -94.66 and a beta of 2.45.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.04 by $0.01. The business had revenue of $743.17 million for the quarter, compared to analyst estimates of $728.27 million. Clover Health Investments had a negative net margin of 0.74% and a negative return on equity of 4.20%. Sell-side analysts forecast that Clover Health Investments, Corp. will post 0.06 EPS for the current fiscal year.

Insider Buying and Selling at Clover Health Investments

In related news, insider Karen Soares sold 6,846 shares of the business's stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $4.78, for a total value of $32,723.88. Following the completion of the transaction, the insider directly owned 1,607,371 shares in the company, valued at $7,683,233.38. The trade was a 0.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at 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 Conrad Wai sold 300,000 shares of the firm's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $4.72, for a total value of $1,416,000.00. Following the sale, the chief executive officer owned 1,170,056 shares in the company, valued at $5,522,664.32. This trade represents a 20.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 736,620 shares of company stock worth $3,310,691. 23.51% of the stock is currently owned by company insiders.

Institutional Trading of Clover Health Investments

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Bank of New York Mellon Corp purchased a new stake in Clover Health Investments in the 2nd quarter worth $6,346,000. Tidal Investments LLC acquired a new position in shares of Clover Health Investments during the 2nd quarter worth about $2,156,000. WINTON GROUP Ltd acquired a new position in shares of Clover Health Investments during the 2nd quarter worth about $913,000. California State Teachers Retirement System lifted its stake in Clover Health Investments by 24.1% in the 1st quarter. California State Teachers Retirement System now owns 497,006 shares of the company's stock valued at $875,000 after buying an additional 96,458 shares in the last quarter. Finally, AXQ Capital LP boosted its holdings in Clover Health Investments by 602.6% in the 2nd quarter. AXQ Capital LP now owns 146,569 shares of the company's stock worth $768,000 after buying an additional 125,708 shares during the last quarter. 19.77% of the stock is currently owned by hedge funds and other institutional investors.

About Clover Health Investments

Clover Health Investments, Corp. is a healthcare technology and Medicare Advantage company headquartered in Franklin, Tennessee. Through its insurance subsidiary, Clover Health Insurance Company, the company offers Medicare Advantage plans to eligible beneficiaries in select counties across the United States. Its plans are designed to provide coverage for hospital, medical and supplemental healthcare services through a managed-care structure.

Clover's technology platform, Clover Assistant, is intended to support physicians by organizing patient information, identifying potential care needs and helping providers coordinate treatment.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.