Clover Health Investments (NASDAQ:CLOV) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Clover Health Investments (NASDAQ:CLOV) released its quarterly earnings data on Wednesday. The company reported $0.01 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.02, Zacks reports. Clover Health Investments had a negative return on equity of 4.20% and a negative net margin of 0.74%. The business had revenue of $759.30 million during the quarter, compared to analyst estimates of $740.07 million.

Here are the key takeaways from Clover Health Investments’ conference call:

• Clover reported strong year-to-date growth: average Medicare Advantage membership rose 49%, revenue increased 57%, and adjusted EBITDA more than doubled to $97 million. Management expects its first full year of GAAP net income profitability in 2026 and raised the low end of its full-year guidance ranges.
• The flagship PPO earned five Stars for payment year 2028, while the HMO earned 4.5 Stars; all members are in plans rated at least 4.5 Stars. Management also cited three consecutive years ranking first among comparable PPO plans on core HEDIS measures.
• Medical cost trends were mixed but generally in line with expectations: inpatient utilization remained favorable and Part D costs performed better than anticipated, while outpatient utilization was elevated year over year. Management said its 2025 and 2026 cohorts are developing as projected, with Clover Assistant coverage tracking ahead of last year.
• Management sees potential for meaningful earnings expansion in 2027 and further opportunity in 2028, driven by maturing member cohorts and operating leverage. It cited historical gross-profit-per-member improvements as cohorts age, but did not provide formal 2027 or 2028 guidance.
• Management expects the usual fourth-quarter seasonal decline in gross profit and a seasonal adjusted EBITDA loss as planned AEP spending rises. It also acknowledged that new-member growth can weigh on near-term earnings as members enter the care model, and did not quantify how much potential 2027 gains may be reinvested.

Clover Health Investments Stock Performance

Shares of NASDAQ CLOV traded down $0.05 during mid-day trading on Thursday, reaching $4.64. The company had a trading volume of 3,637,805 shares, compared to its average volume of 5,801,125. The stock’s 50 day moving average is $4.52 and its 200-day moving average is $3.57. Clover Health Investments has a twelve month low of $1.58 and a twelve month high of $5.59. The stock has a market capitalization of $2.47 billion, a PE ratio of -92.88 and a beta of 2.52.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. Zacks Research upgraded Clover Health Investments to a “hold” rating in a research report on Monday, September 14th. Weiss Ratings reissued a “sell (d-)” rating on shares of Clover Health Investments in a research report on Monday, September 21st. Wall Street Zen lowered Clover Health Investments from a “strong-buy” rating to a “buy” rating in a research note on Sunday, August 16th. Canaccord Genuity Group raised their price target on shares of Clover Health Investments from $4.20 to $5.50 and gave the company a “buy” rating in a report on Tuesday, July 21st. Finally, Deutsche Bank Aktiengesellschaft started coverage on shares of Clover Health Investments in a research report on Thursday, September 10th. They set a “buy” rating and a $6.00 price target on the stock. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $5.00.

Insider Buying and Selling at Clover Health Investments

In other news, insider Karen Soares sold 19,275 shares of the business’s stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $4.66, for a total value of $89,821.50. Following the completion of the sale, the insider directly owned 1,573,423 shares in the company, valued at approximately $7,332,151.18. The trade was a 1.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Conrad Wai sold 300,000 shares of the firm’s stock in a transaction that occurred on 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 completion of the sale, the chief executive officer directly owned 1,170,056 shares in the company, valued at $5,522,664.32. This trade represents a 20.41% decrease in their position. 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. Over the last ninety days, insiders sold 856,371 shares of company stock valued at $3,870,740. Corporate insiders own 23.51% of the company’s stock.

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.