Any problems cause shares to fall -- and sometimes fall hard. Clover Health has experienced its fair share of problems in recent weeks. The stock sank after a well-known short-seller made allegations about the company in early February. Now the company's Q4 update has disappointed investors.
Full Answer
Why Clover Health might not bring you good luck?
May 17, 2021 · Shares of Clover Health Investments ( CLOV-1.27%) were sinking 9.4% as of 3:10 p.m. EDT on Monday. The decline came after the Medicare-focused health insurer announced its first-quarter results ...
Is Clover Health a buy?
Mar 02, 2021 · Shares of Clover Health Investments ( CLOV -0.74%) ended 12.8% lower as of the market close on Tuesday. The drop came after the company announced its fourth-quarter results following the market ...
Is Clover Health stock a buy?
Aug 06, 2021 · Shares of healthcare technology company Clover Health ( CLOV -2.93% ) lost 39.4% in July, according to numbers from S&P Global Market Intelligence. Insider selling, the loss of its CFO, and the ...
Should I buy Clov?
Jun 15, 2021 · S ince June 1, Clover Health Investments Corp. (), a Medicare Advantage insurer, saw its share price increase around 186% to $22.15 on June 8.Since then, the stock has spiraled down 34% to close ...
Why did Clover Health stock go down?
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2021 is expected to fall between negative $230 million and $250 million. Uncertainty over how long it may take for Clover to achieve profitability has led investors to abandon the stock.Jan 31, 2022
What's happening with Clover Health?
Founded in 2014 and headquartered in Tennessee, Clover is expanding its membership, doubling its coverage area and losing money. For the third quarter of 2021, the company reported a 111% medical cost ratio, meaning it paid out 11% more in medical costs than it earned in premiums .Apr 26, 2022
Is Clover Health a good investment?
Clover Health (NASDAQ:CLOV) shares spiked up today (Thursday) on good Q4 performance and promising 2022 guidance. The fledgling insurance company doubled its revenue last quarter and demonstrated improving margins, assuaging some fears over its business model.Feb 25, 2022
Will Clover Health recover?
Who are Clover Health competitors?
Is Clover Health a good company?
Who is investing in Clover Health?
How does Clover Health make money?
Is Clover a buy?
The company's guidance for 2021 was below expectations
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
What happened
Shares of Clover Health Investments ( NASDAQ:CLOV) ended 12.8% lower as of the market close on Tuesday. The drop came after the company announced its fourth-quarter results following the market close on Monday.
So what
Growth stocks like Clover Health can't afford to have a misstep. Any problems cause shares to fall -- and sometimes fall hard.
Now what
There are a couple of key things to watch with Clover Health in the coming months. The company expects to launch its direct contracting program in April where can benefit from reducing Medicare expenditures.
The company had a lot going on last month and none of it was good
Jason covers stocks for the Fool. He leans on his consulting background and executive experience in the human capital management and healthcare industries to offer analysis of individual companies.
What happened
Shares of healthcare technology company Clover Health ( NASDAQ:CLOV) lost 39.4% in July, according to numbers from S&P Global Market Intelligence. Insider selling, the loss of its CFO, and the waning attention of meme-stock traders all contributed to the performance.
So what
In the long term, traders moving on from the stock isn't a bad thing. The fall puts it essentially right back where it was at the beginning of June.
Now what
Now that Wall Street has a clearer picture of where the company stands, the stock should be less volatile. As for the finance chief, Clover is bringing in an industry veteran on an interim basis.
A short-seller asks questions about the company's business
Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. He spends a lot of time these days focused on the industrials and financials.
What happened
Shares of Clover Health Investments ( NASDAQ:CLOV) fell 32.6% in February, according to data provided by S&P Global Market Intelligence, after the company was targeted by short-seller Hindenburg Research. Hindenburg called Clover Health " a broken company " and provided a good enough argument to cause some investors to walk away from the stock.
So what
Clover became public through one of the special purpose acquisition companies (SPACs) backed by billionaire investor Chamath Palihapitiya. Clover is a medical insurance provider focused on Medicare Advantage plans that uses internally developed tech to try to improve patient outcomes, and their payments.
Now what
It's hard to know what to make of any short report. Hindenburg has a decent track record, and there is a lot of meat contained in the report, but then again investigations are not uncommon and often turn out to be nothing.
Why CLOV stock is going down
There are multiple reasons why CLOV stock is going down. The lockup period in the stock has finished, which has raised fears of insider selling. The company’s guidance cut was another dampener. To add to the woes, several analysts have turned bearish on the stock.
Is the SRAC ruling weighing on CLOV stock?
The SEC has imposed a fine on Stable Road Acquisition (SRAC) for failing to do its due diligence in the Momentus merger. The ruling is a watershed event for the SPAC industry and we could see similar rulings in the future.
CLOV stock looks undervalued now
After the massive crash, CLOV stock looks undervalued now. The company has a market capitalization of $3.4 billion and an enterprise value of around $3.6 billion. In 2021, Clover Health expects its revenues to be between $810 million and $830 million, which would mean a 2021 price-to-sales multiple of 4.4x at the midpoint.
Will Reddit target Clover Health stock again?
Clover Health is still among the top discussion topics on Reddit group WallStreetBets. According to Fintel, the stock had a short volume ratio of around 19 percent on July 13, which is the second-lowest that we’ve seen in the month. Looking beyond the short squeeze, CLOV looks like a good buy at these prices.
Will Clover Health stock go back up?
Clover Health stock has an average target price of $9.50, which represents an upside potential of over 6.6 percent. Currently, the sentiments are negative towards CLOV stock, which might impact the price action in the short term.
