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

Clover Health Investments (NASDAQ:CLOV) released its quarterly earnings results on Wednesday. The company reported $0.01 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.01) by $0.02, Zacks reports. Clover Health Investments had a net margin of 0.45% and a return on equity of 4.83%. The business had revenue of $759.30 million during the quarter, compared to the consensus estimate 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 Price Performance

Shares of CLOV stock traded down $0.07 on Friday, hitting $4.41. 2,413,436 shares of the stock traded hands, compared to its average volume of 5,805,644. The company’s fifty day moving average is $4.53 and its 200 day moving average is $3.58. Clover Health Investments has a 1-year low of $1.58 and a 1-year high of $5.59. The company has a market capitalization of $2.34 billion, a PE ratio of 442.94 and a beta of 2.52.

Insider Buying and Selling at Clover Health Investments

In other Clover Health Investments news, VP Joseph Frank Oldakowski sold 20,000 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $5.16, for a total transaction of $103,200.00. Following the sale, the vice president directly owned 279,067 shares of the company’s stock, valued at approximately $1,439,985.72. This represents a 6.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Karen Soares sold 19,275 shares of the firm’s stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $4.66, for a total transaction of $89,821.50. Following the completion of the transaction, the insider 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. 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. In the last three months, insiders sold 856,371 shares of company stock worth $3,870,740. Company insiders own 23.51% of the company’s stock.

Analyst Ratings Changes

CLOV has been the topic of a number of research analyst reports. Wall Street Zen downgraded shares of Clover Health Investments from a “strong-buy” rating to a “buy” rating in a research note on Sunday, August 16th. Needham & Company LLC reissued a “buy” rating on shares of Clover Health Investments in a research report on Thursday. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Clover Health Investments in a research note on Thursday, September 10th. They issued a “buy” rating and a $6.00 target price on the stock. UBS Group increased their price target on shares of Clover Health Investments from $5.00 to $5.50 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Clover Health Investments in a research note on Monday, September 21st. Three analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $5.10.

Clover Health Investments Company Profile

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.