Oscar Health (NYSE:OSCR) Shares Down 7.6% on Insider Selling

Key Points

• Oscar Health shares fell 7.6% to about $30.51 after several insiders sold shares, totaling roughly $2.5 million. The transactions were made under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards, and the insiders retained substantial holdings.
• The company recently reported strong quarterly results, with earnings of $1.10 per share versus the $0.40 consensus estimate and revenue of $4.88 billion, up 70.4% year over year.
• Analyst sentiment remains mixed: Oscar Health has an average “Hold” rating and a $26.22 price target, below its recent trading level, despite some analysts raising targets or upgrading the stock.

Shares of Oscar Health, Inc. (NYSE:OSCR - Get Free Report) fell 7.6% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $31.29 and last traded at $30.5120. 409,726 shares were traded during trading, a decline of 94% from the average session volume of 7,022,043 shares. The stock had previously closed at $33.01.

Specifically, Director Mario Schlosser sold 31,422 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $31.45, for a total value of $988,221.90. Following the completion of the transaction, the director owned 449,444 shares of the company's stock, valued at $14,135,013.80. This trade represents a 6.53% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at 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 Adam Mcananey sold 9,092 shares of the business's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $31.45, for a total transaction of $285,943.40. Following the completion of the transaction, the insider owned 209,004 shares of the company's stock, valued at approximately $6,573,175.80. This trade represents a 4.17% 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. In other news, CFO Richard Blackley sold 28,869 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $31.45, for a total value of $907,930.05. Following the sale, the chief financial officer directly owned 1,046,108 shares in the company, valued at approximately $32,900,096.60. This trade represents a 2.69% decrease in their ownership of the stock. The sale 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.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. The Goldman Sachs Group reiterated a "neutral" rating and issued a $30.00 target price on shares of Oscar Health in a report on Tuesday, August 11th. Barclays increased their price target on Oscar Health from $35.00 to $39.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Wall Street Zen raised Oscar Health from a "buy" rating to a "strong-buy" rating in a research report on Sunday, June 14th. Wells Fargo & Company raised their target price on shares of Oscar Health from $20.00 to $27.00 and gave the company an "equal weight" rating in a report on Thursday, August 13th. Finally, Zacks Research upgraded shares of Oscar Health from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 6th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, Oscar Health currently has an average rating of "Hold" and an average price target of $26.22.

Trending Headlines about Oscar Health

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

• Positive Sentiment: Oscar Health’s latest quarterly results were substantially better than expected: earnings per share were $1.10 versus the $0.40 consensus estimate, while revenue reached $4.88 billion, exceeding estimates of $4.73 billion. Revenue increased 70.4% year over year, and the company swung from a loss in the prior-year quarter to a profit. Analysts expect full-year EPS of approximately $1.54. Oscar Health stock and earnings information
• Positive Sentiment: Institutional ownership remains strong at approximately 75.7%, with several investors increasing their positions during the second quarter. The stock is also trading above both its 50-day and 200-day moving averages, signaling strong recent momentum.
• Neutral Sentiment: Multiple Oscar Health insiders sold shares at $31.45, including Director Mario Schlosser, CFO Richard Blackley, Adam Mcananey, Janet Liang and CAO Victoria Baltrus. The transactions totaled roughly $2.5 million, but each was conducted under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards. The insiders retained substantial positions, reducing the significance of the sales as a bearish signal. Oscar Health insider sale filings
• Negative Sentiment: Valuation and analyst expectations remain potential headwinds. OSCR’s consensus price target is $26.22, below its recent trading level near the 52-week high of $33.55, while the average analyst rating remains “Hold.”

Oscar Health Price Performance

The stock has a market capitalization of $9.58 billion, a price-to-earnings ratio of 22.04, a P/E/G ratio of 0.66 and a beta of 2.37. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.21. The stock has a fifty day moving average of $30.58 and a 200-day moving average of $23.01.

Oscar Health (NYSE:OSCR - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $1.10 earnings per share for the quarter, topping analysts' consensus estimates of $0.40 by $0.70. Oscar Health had a net margin of 3.60% and a return on equity of 38.45%. The company had revenue of $4.88 billion for the quarter, compared to analysts' expectations of $4.73 billion. During the same quarter last year, the company earned ($0.89) earnings per share. The firm's revenue for the quarter was up 70.4% on a year-over-year basis. On average, equities research analysts predict that Oscar Health, Inc. will post 1.54 EPS for the current fiscal year.

Institutional Investors Weigh In On Oscar Health

Institutional investors and hedge funds have recently bought and sold shares of the stock. Geode Capital Management LLC boosted its stake in shares of Oscar Health by 2.5% in the fourth quarter. Geode Capital Management LLC now owns 4,798,313 shares of the company's stock valued at $68,964,000 after buying an additional 116,430 shares in the last quarter. BIT Capital GmbH raised its position in 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. Simplify Asset Management Inc. acquired a new stake in Oscar Health in the fourth quarter valued at $2,948,000. Fortis Group Advisors LLC lifted its holdings in Oscar Health by 82.9% in the fourth quarter. Fortis Group Advisors LLC now owns 189,857 shares of the company's stock valued at $2,724,000 after acquiring an additional 86,035 shares during the period. Finally, Convergence Investment Partners LLC purchased a new stake in shares of Oscar Health during the 1st quarter worth $1,208,000. 75.70% of the stock is owned by hedge funds and other institutional investors.

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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