Clover Health Investments (NASDAQ:CLOV) Shares Gap Down Following Weak Earnings

Clover Health Investments, Corp. (NASDAQ:CLOV) shares gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $3.52, but opened at $2.82. Clover Health Investments shares last traded at $2.6650, with a volume of 6,993,403 shares changing hands.

The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.07). Clover Health Investments had a negative net margin of 3.29% and a negative return on equity of 16.80%. The business had revenue of $496.65 million for the quarter, compared to the consensus estimate of $467.18 million.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on CLOV shares. Leerink Partners set a $3.00 target price on shares of Clover Health Investments and gave the stock a “market perform” rating in a research note on Tuesday, October 21st. Canaccord Genuity Group decreased their price objective 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. Zacks Research upgraded shares of Clover Health Investments from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 24th. UBS Group dropped their target price on shares of Clover Health Investments from $4.50 to $3.00 and set a “neutral” rating for the company in a report on Wednesday, August 6th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Clover Health Investments in a report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Clover Health Investments has an average rating of “Moderate Buy” and a consensus price target of $3.93.

Insider Activity at Clover Health Investments

In other news, Director Anna U. Loengard bought 26,500 shares of the stock in a transaction on Wednesday, August 13th. The stock was acquired at an average cost of $2.59 per share, for a total transaction of $68,635.00. Following the acquisition, the director owned 29,610 shares of the company’s stock, valued at $76,689.90. This represents a 852.09% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 24.07% of the company’s stock.

Institutional Investors Weigh In On Clover Health Investments

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Fifth Third Bancorp acquired a new position in Clover Health Investments during the 2nd quarter valued at approximately $28,000. Clarity Wealth Advisors LLC acquired a new position in shares of Clover Health Investments in the 2nd quarter valued at $28,000. Alteri Wealth LLC purchased a new stake in shares of Clover Health Investments during the 2nd quarter worth about $30,000. Envestnet Asset Management Inc. purchased a new stake in shares of Clover Health Investments in the second quarter valued at approximately $31,000. Finally, Lido Advisors LLC acquired a new position in Clover Health Investments during the second quarter worth $32,000. Hedge funds and other institutional investors own 19.77% of the company’s stock.

Clover Health Investments Trading Up 2.3%

The company has a fifty day moving average of $3.01 and a 200-day moving average of $3.01. The company has a market capitalization of $1.37 billion, a price-to-earnings ratio of -24.27 and a beta of 2.07.

Clover Health Investments Company Profile

Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat.