Traders Buy High Volume of Call Options on Clover Health Investments (NASDAQ:CLOV)

Clover Health Investments, Corp. (NASDAQ:CLOV) was the target of unusually large options trading on Thursday. Stock investors purchased 44,769 call options on the company. This represents an increase of approximately 86% compared to the average daily volume of 24,046 call options.

Clover Health Investments Stock Down 4.8%

CLOV opened at $3.98 on Friday. The firm has a 50-day simple moving average of $2.57 and a two-hundred day simple moving average of $2.43. Clover Health Investments has a 52 week low of $1.58 and a 52 week high of $4.23. The company has a market capitalization of $2.10 billion, a PE ratio of -33.16 and a beta of 2.44.

Clover Health Investments (NASDAQ:CLOV) last released its quarterly earnings data on Wednesday, May 6th. The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.02). Clover Health Investments had a negative net margin of 2.58% and a negative return on equity of 16.52%. The company had revenue of $749.19 million for the quarter, compared to the consensus estimate of $714.89 million. As a group, sell-side analysts expect that Clover Health Investments will post -0.02 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CLOV. Weiss Ratings reiterated a “sell (d-)” rating on shares of Clover Health Investments in a research note on Friday, March 27th. Leerink Partners cut their price target on Clover Health Investments from $3.00 to $2.50 and set a “market perform” rating for the company in a research note on Thursday, March 5th. Canaccord Genuity Group cut their price target on Clover Health Investments from $3.70 to $3.20 and set a “buy” rating for the company in a research note on Friday, March 20th. Finally, Wall Street Zen upgraded Clover Health Investments from a “sell” rating to a “hold” rating in a research note on Sunday, February 15th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $2.90.

Insiders Place Their Bets

In other Clover Health Investments news, Director Carladenise Armbrister Edwards sold 67,160 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $3.42, for a total value of $229,687.20. Following the completion of the sale, the director owned 285,432 shares in the company, valued at approximately $976,177.44. This represents a 19.05% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Conrad Wai sold 220,426 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $3.99, for a total value of $879,499.74. Following the completion of the sale, the chief executive officer owned 1,390,056 shares of the company’s stock, valued at $5,546,323.44. The trade was a 13.69% 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. In the last quarter, insiders sold 560,625 shares of company stock worth $1,834,034. Corporate insiders own 23.51% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in CLOV. Abel Hall LLC bought a new position in shares of Clover Health Investments during the 4th quarter valued at about $27,000. Allworth Financial LP lifted its holdings in shares of Clover Health Investments by 218.9% in the 3rd quarter. Allworth Financial LP now owns 9,509 shares of the company’s stock valued at $29,000 after acquiring an additional 6,527 shares during the last quarter. Quadrature Capital Ltd bought a new position in shares of Clover Health Investments in the 4th quarter valued at about $29,000. Schonfeld Strategic Advisors LLC bought a new position in shares of Clover Health Investments in the 4th quarter valued at about $29,000. Finally, Envestnet Asset Management Inc. bought a new position in shares of Clover Health Investments in the 2nd quarter valued at about $31,000. Institutional investors own 19.77% of the company’s stock.

About Clover Health Investments

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.