Clover Health Investments (NASDAQ:CLOV) Shares Gap Up After Earnings Beat

Clover Health Investments, Corp. (NASDAQ:CLOV) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.14, but opened at $4.89. Clover Health Investments shares last traded at $5.0350, with a volume of 2,976,872 shares traded.

The company reported $0.05 EPS for the quarter, beating the consensus estimate of $0.04 by $0.01. Clover Health Investments had a negative return on equity of 4.35% and a negative net margin of 0.74%.The firm had revenue of $743.17 million during the quarter, compared to analysts’ expectations of $728.27 million.

Wall Street Analyst Weigh In

A number of research analysts recently commented on CLOV shares. Weiss Ratings restated a “sell (d-)” rating on shares of Clover Health Investments in a research note on Wednesday, June 24th. Wall Street Zen raised shares of Clover Health Investments from a “buy” rating to a “strong-buy” rating in a report on Saturday. Canaccord Genuity Group increased their price objective on shares of Clover Health Investments from $4.20 to $5.50 and gave the company a “buy” rating in a research note on Tuesday, July 21st. Finally, UBS Group raised their price objective on shares of Clover Health Investments from $4.75 to $5.00 and gave the stock a “neutral” rating in a report on Thursday. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $4.33.

Insider Activity

In other Clover Health Investments news, CEO Brady Patrick Priest sold 98,039 shares of the company’s stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $3.52, for a total transaction of $345,097.28. Following the sale, the chief executive officer directly owned 2,040,222 shares of the company’s stock, valued at approximately $7,181,581.44. This represents a 4.58% 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 link. Also, CEO Andrew Toy sold 313,476 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $5.32, for a total transaction of $1,667,692.32. Following the sale, the chief executive officer directly owned 9,609,825 shares of the company’s stock, valued at approximately $51,124,269. The trade was a 3.16% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 715,884 shares of company stock worth $3,202,372 over the last ninety days. Corporate insiders own 23.51% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Bank of New York Mellon Corp bought a new stake in shares of Clover Health Investments during the second quarter worth $6,346,000. Sapient Capital LLC acquired a new position in Clover Health Investments during the 1st quarter worth about $141,000. California State Teachers Retirement System lifted its position in Clover Health Investments by 24.1% during the 1st quarter. California State Teachers Retirement System now owns 497,006 shares of the company’s stock worth $875,000 after buying an additional 96,458 shares in the last quarter. Lazard Asset Management LLC bought a new stake in Clover Health Investments during the 1st quarter worth about $309,000. Finally, Sei Investments Co. grew its holdings in Clover Health Investments by 109.7% during the 1st quarter. Sei Investments Co. now owns 88,701 shares of the company’s stock worth $156,000 after acquiring an additional 46,404 shares during the last quarter. 19.77% of the stock is owned by institutional investors and hedge funds.

Clover Health Investments Trading Up 2.1%

The stock has a market cap of $2.51 billion, a P/E ratio of -95.18 and a beta of 2.47. The business’s fifty day simple moving average is $4.64 and its 200 day simple moving average is $3.17.

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.