Clover Health Investments (NASDAQ:CLOV) Stock Breaks Below Fifty Day Moving Average - Here's Why

Key Points

• Clover Health shares fell below their 50-day moving average, trading as low as $4.34 versus the $4.51 average, and last changing hands at $4.46.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $5.00, although Deutsche Bank and Needham initiated coverage with “Buy” ratings and $6.00 targets.
• The company exceeded quarterly expectations, reporting $0.05 in earnings per share and $743.17 million in revenue, but insiders sold 856,371 shares worth approximately $3.87 million over the past 90 days.

Shares of Clover Health Investments, Corp. (NASDAQ:CLOV - Get Free Report) crossed below its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $4.51 and traded as low as $4.34. Clover Health Investments shares last traded at $4.46, with a volume of 4,650,319 shares changing hands.

Analysts Set New Price Targets

Several brokerages have commented on CLOV. Canaccord Genuity Group raised their target price on shares of Clover Health Investments from $4.20 to $5.50 and gave the stock a "buy" rating in a report 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 upped 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. Deutsche Bank Aktiengesellschaft started coverage on shares of Clover Health Investments in a research note on Thursday, September 10th. They issued a "buy" rating and a $6.00 price objective for the company. Finally, Needham & Company LLC began coverage on shares of Clover Health Investments in a research report on Wednesday. They set a "buy" rating and a $6.00 price objective on the stock. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $5.00.

Clover Health Investments Stock Performance

The company has a 50 day simple moving average of $4.51 and a two-hundred day simple moving average of $3.54. The company has a market cap of $2.37 billion, a PE ratio of -89.18 and a beta of 2.45.

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

Insider Activity at Clover Health Investments

In other Clover Health Investments news, VP Joseph Frank Oldakowski sold 20,000 shares of the company's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $5.16, for a total value of $103,200.00. Following the transaction, the vice president owned 279,067 shares in the company, valued at approximately $1,439,985.72. This represents a 6.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Andrew Toy sold 318,806 shares of the company's stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $4.19, for a total transaction of $1,335,797.14. Following the completion of the transaction, the chief executive officer owned 9,140,510 shares in the company, valued at approximately $38,298,736.90. This represents a 3.37% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 856,371 shares of company stock valued at $3,870,740. Company insiders own 23.51% of the company's stock.

Hedge Funds Weigh In On Clover Health Investments

A number of hedge funds have recently modified their holdings of CLOV. Bank of New York Mellon Corp purchased a new stake in shares of Clover Health Investments during the 2nd quarter worth about $6,346,000. Tidal Investments LLC bought a new stake in shares of Clover Health Investments in the 2nd quarter valued at approximately $2,156,000. WINTON GROUP Ltd bought a new stake in shares of Clover Health Investments in the 2nd quarter valued at approximately $913,000. California State Teachers Retirement System increased its holdings in Clover Health Investments by 24.1% in the first quarter. California State Teachers Retirement System now owns 497,006 shares of the company's stock worth $875,000 after buying an additional 96,458 shares during the last quarter. Finally, AXQ Capital LP increased its holdings in Clover Health Investments by 602.6% in the second 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 owned by institutional investors and hedge funds.

About Clover Health Investments

Clover Health Investments, Corp. is a health insurance technology company focused on providing Medicare Advantage plans to eligible seniors in the United States. Its plans combine hospital, medical and prescription drug coverage with additional benefits that may vary by plan and location.

The company uses its Clover Assistant technology platform to provide physicians with data-driven insights intended to support clinical decision-making and care coordination. The platform aggregates member health information and helps participating providers identify care opportunities, manage chronic conditions and engage with patients.

Clover Health was founded in 2012 and became a publicly traded company in 2021 through a merger with a special purpose acquisition company.

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