Stock Traders Purchase Large Volume of Call Options on Clover Health Investments (NASDAQ:CLOV)

Key Points

• Traders purchased 76,011 call options on CLOV — about a 128% increase over typical daily call volume, signaling unusually large bullish options activity.
• CLOV shares rose 2.9% to $2.67; the company recently missed EPS estimates while beating revenue, has negative margins and a consensus analyst rating of "Hold" with a $3.23 price target.
• Institutional investors like Geode, Millennium and Bank of America materially increased stakes recently, leaving about 19.77% of the stock institutionally owned, though analyst opinions remain mixed (1 Buy, 3 Hold, 1 Sell).

Clover Health Investments, Corp. (NASDAQ:CLOV - Get Free Report) was the target of unusually large options trading on Tuesday. Stock investors bought 76,011 call options on the stock. This is an increase of approximately 128% compared to the typical daily volume of 33,410 call options.

Clover Health Investments Stock Up 2.9%

CLOV traded up $0.08 on Tuesday, hitting $2.67. The company's stock had a trading volume of 1,472,616 shares, compared to its average volume of 3,420,164. The firm has a market cap of $1.38 billion, a P/E ratio of -24.32 and a beta of 2.12. Clover Health Investments has a 12 month low of $2.12 and a 12 month high of $4.87. The company's 50 day simple moving average is $2.65 and its 200-day simple moving average is $2.78.

Clover Health Investments (NASDAQ:CLOV - Get Free Report) last announced its earnings results on Tuesday, November 4th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.07). The company had revenue of $496.65 million for the quarter, compared to the consensus estimate of $467.18 million. Clover Health Investments had a negative net margin of 3.29% and a negative return on equity of 16.79%. Equities analysts predict that Clover Health Investments will post -0.12 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms recently issued reports on CLOV. Weiss Ratings reiterated a "sell (d-)" rating on shares of Clover Health Investments in a research report on Monday, December 29th. Canaccord Genuity Group cut their target price on shares of Clover Health Investments from $4.10 to $3.70 and set a "buy" rating on the stock in a research report on Thursday, November 6th. Wall Street Zen raised Clover Health Investments from a "sell" rating to a "hold" rating in a research note on Saturday, December 13th. Zacks Research lowered shares of Clover Health Investments from a "strong-buy" rating to a "hold" rating in a report on Monday, November 24th. Finally, Leerink Partners set a $3.00 price target on Clover Health Investments and gave the stock a "market perform" rating in a report on Tuesday, October 21st. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $3.23.

Institutional Trading of Clover Health Investments

A number of institutional investors and hedge funds have recently bought and sold shares of CLOV. Geode Capital Management LLC raised its stake in Clover Health Investments by 95.7% during the 2nd quarter. Geode Capital Management LLC now owns 9,843,349 shares of the company's stock valued at $27,467,000 after buying an additional 4,812,368 shares during the last quarter. Millennium Management LLC increased its stake in Clover Health Investments by 365.9% in the 1st quarter. Millennium Management LLC now owns 5,804,006 shares of the company's stock worth $20,836,000 after buying an additional 4,558,305 shares in the last quarter. Divisadero Street Capital Management LP purchased a new position in Clover Health Investments in the 3rd quarter worth approximately $8,470,000. Bank of America Corp DE boosted its position in shares of Clover Health Investments by 217.5% during the second quarter. Bank of America Corp DE now owns 4,012,744 shares of the company's stock worth $11,196,000 after acquiring an additional 2,748,783 shares during the last quarter. Finally, First Trust Advisors LP purchased a new position in shares of Clover Health Investments during the second quarter valued at about $4,149,000. 19.77% of the stock is currently owned by institutional investors.

Clover Health Investments Company Profile

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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