Clover Health Investments (NASDAQ:CLOV) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Clover Health Investments (NASDAQ:CLOV) released its quarterly earnings results on Wednesday. The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.01, FiscalAI reports. The company had revenue of $743.17 million during the quarter, compared to analysts’ expectations of $728.27 million. Clover Health Investments had a negative net margin of 2.58% and a negative return on equity of 16.52%.

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

• Strong growth and profitability: Second-quarter Medicare Advantage membership rose 48% year over year to 157,000, while revenue increased 56% to $743 million, adjusted EBITDA reached $41 million, and GAAP net income was $28 million.
• Raised 2026 guidance: Clover increased its full-year outlook to 156,000–158,000 average members, $2.92–$3.00 billion of revenue, $525–$555 million of gross profit, $70–$85 million of adjusted EBITDA, and $20–$35 million of GAAP net income.
• Improving cohort economics support 2027: Management said members generally improve by about $70 in gross profit per member per month from year one to year two, with the large 2025 cohort expected to enter year three in 2027. The company expects increasing Clover Assistant adoption and member maturation to drive further profitability.
• Four-and-a-half-star rating remains subject to litigation: All Medicare Advantage members are currently enrolled in plans receiving four-and-a-half-star payment treatment for 2027, providing additional flexibility for benefits, growth, and margins, but CMS has appealed the court decision.
• Operating leverage and cash generation improved: Adjusted SG&A declined to 15% of revenue, cash and investments totaled $443 million with no debt, and operating cash flow reached $133 million through the first half. Clover also plans to apply AI to back-office operations to improve claims processing and reduce administrative costs.

Clover Health Investments Trading Down 3.0%

Shares of Clover Health Investments stock traded down $0.13 on Wednesday, reaching $4.14. 4,437,271 shares of the company were exchanged, compared to its average volume of 6,474,274. Clover Health Investments has a one year low of $1.58 and a one year high of $5.59. The company has a market capitalization of $2.18 billion, a price-to-earnings ratio of -34.50 and a beta of 2.47. The company has a 50-day moving average of $4.61 and a 200 day moving average of $3.13.

Insiders Place Their Bets

In other Clover Health Investments news, CEO Conrad Wai sold 220,426 shares of the company’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $3.99, for a total transaction of $879,499.74. Following the sale, the chief executive officer directly owned 1,390,056 shares of the company’s stock, valued at approximately $5,546,323.44. This represents a 13.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Toy sold 313,476 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $5.32, for a total transaction of $1,667,692.32. Following the completion of the sale, the chief executive officer owned 9,609,825 shares of the company’s stock, valued at approximately $51,124,269. This represents a 3.16% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders sold 715,884 shares of company stock valued at $3,202,372 in the last ninety days. 23.51% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Clover Health Investments

Institutional investors and hedge funds have recently modified their holdings of the company. AQR Capital Management LLC acquired a new stake in Clover Health Investments in the 1st quarter valued at about $49,000. Integrated Wealth Concepts LLC acquired a new position in Clover Health Investments during the first quarter worth approximately $37,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Clover Health Investments by 3.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 855,264 shares of the company’s stock valued at $3,070,000 after buying an additional 24,807 shares during the period. Envestnet Asset Management Inc. bought a new stake in Clover Health Investments in the second quarter valued at approximately $31,000. Finally, JPMorgan Chase & Co. lifted its position in shares of Clover Health Investments by 41.6% in the second quarter. JPMorgan Chase & Co. now owns 633,700 shares of the company’s stock valued at $1,768,000 after buying an additional 186,047 shares during the last quarter. 19.77% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on CLOV shares. Canaccord Genuity Group lifted their target price on Clover Health Investments from $4.20 to $5.50 and gave the company a “buy” rating in a research report on Tuesday, July 21st. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Clover Health Investments in a research report on Wednesday, June 24th. UBS Group lifted their price target on shares of Clover Health Investments from $2.75 to $4.75 and gave the company a “neutral” rating in a research note on Thursday, June 11th. Finally, Wall Street Zen raised shares of Clover Health Investments from a “hold” rating to a “buy” rating in a research report on Saturday, June 6th. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Clover Health Investments currently has an average rating of “Hold” and an average target price of $4.25.

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.