Clover Health is trying to disrupt the Medicare insurance market. The company went public through a SPAC in 2020 but is struggling to manage its costs. The stock is down over 50% since its SPAC merger.
Why Clover Health might not bring you good luck?
Feb 22, 2022 · At the end of the latest market close, Clover Health Investments Corp. (CLOV) was valued at $2.18. In that particular session, Stock kicked-off at the price of $2.20 while reaching the peak value of $2.21 and lowest value recorded on the day was $2.08. The stock current value is $2.11.Recently in Ne
Is Clover Health a buy?
Dec 03, 2021 · Key Points Clover Health is trying to disrupt the Medicare insurance market. The company went public through a SPAC in 2020 but is struggling to manage its costs. The stock is down over 50% since...
Is Clover Health stock a buy?
Jul 14, 2021 · 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...
Should I buy Clov?
Nov 16, 2021 · However, Medicare disruptor Clover Health (NASDAQ: CLOV) was a major underperformer, with shares down by 10% after falling as much as 12% earlier in the day. So what Today's move isn't earnings...
Will Clover Health stock recover?
Clover Health stumbled out of the gate. It failed to disclose a government investigation into its business. Shares dropped by nearly half as short sellers revealed that fact. Subsequently, Clover has failed to recover.Feb 8, 2022
Is Clover Health A Good Investment?
At the moment, the biggest reason Clover Health is an interesting insurance stock that might be worth a buy is that it's raking in revenue. In Q3, the company made $427.2 million, which works out to be a 153% rise in quarterly revenue year over year.Nov 30, 2021
What is going on with Clover Health?
Clover Health posted a $48.4 million loss in the first quarter of 2021, nearly doubling its year-over-year losses as medical costs jumped under the pandemic. The startup insurer reported a $28.2 million loss in the first quarter of 2020, according to the company's earnings report released this week.
Why is Clover Health being sued?
Clover, which sells Medicare-backed insurance plans, went public through a $3.7 billion deal with a Palihapitiya-backed SPAC in October 2020. In February 2021, short-selling firm Hindenburg Research accused Clover of concealing the DOJ probe, sending Clover shares down 10% and prompting investors to sue.Mar 1, 2022
Is Clover stock undervalued?
At current prices, the company is undervalued, despite its above-average growth.Feb 25, 2022
Is Clover Health a good company?
Clover Health Reviews FAQs Is Clover Health a good company to work for? Clover Health has an overall rating of 4.1 out of 5, based on over 179 reviews left anonymously by employees. 77% of employees would recommend working at Clover Health to a friend and 78% have a positive outlook for the business.Mar 21, 2022
Who is Clover Health owned by?
The company provides Medicare Advantage (MA) insurance plans and operates as a direct contracting entity with the U.S. government. The company manages care for Medicare beneficiaries in 11 states and started trading publicly on January 8, 2021....Clover Health.TypePublicHeadquartersFranklin, Tennessee , United States8 more rows
Why is Clover Health stock up?
Right now, CLOV stock is up in response to Clinton's purchase, which investors are viewing as a positive signal. Often times, director trading activity like this is important to track because insiders often have a better view of a company's long-term growth potential than retail investors.Mar 7, 2022
Who are Clover Health competitors?
Clover Health competitors include Aflac, Liberty Mutual Insurance, Oscar Health and State Farm Insurance.
NASDAQ: CLOV
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What happened
Investors in Clover Health ( CLOV -3.21% ) had a rough November. Shares of the stock were down 33.9% in the period, according to data from S&P Global Market Intelligence.
So what
On Nov. 8, Clover Health released its earnings results for the third quarter, which ended in September. The company's top-line numbers looked good, with revenue growing 153% year over year to $472.2 million. However, deeper into the report things don't look too hot for Clover Health.
Now what
Clover Health has a market cap of $2.1 billion and trades at a price-to-sales ratio ( P/S) of 1.8 after this recent drawdown. This may seem cheap considering how fast Clover Health is growing. But if the business can't get its costs in order, it will never bring in a dime in earnings, no matter how much revenue it brings in.
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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.
What happened
The stock market was having a modestly strong start to the day on Tuesday, with all three major averages in the green by less than 1% at 10 a.m. EST. However, Medicare disruptor Clover Health (NASDAQ: CLOV) was a major underperformer, with shares down by 10% after falling as much as 12% earlier in the day.
So what
Today's move isn't earnings related. Instead, Clover announced after the close on Monday that it plans to sell 35 million new shares to the public to raise capital. Underwriters will have the option to purchase an additional 5.25 million shares, so more than 40 million shares could potentially be issued.
Now what
On one hand, this proposed stock sale shouldn't come as too much of a surprise, as Clover is a money-losing business. The company is expecting an adjusted EBITDA loss of at least $230 million for 2021, and there isn't a clear path to profitability in sight.
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1. SPAC Hype
Clover Health has suffered due to its connection to billionaire venture capitalist investor Chamath Palihapitiya, the so-called "King of SPACs."
2. The Hindenburg Report
Here's another reason for the Clover Health sell-off: Last year, Hindenburg Research issued a report that alleged dubious sales practices by the company.
3. Far From Profitable
In its most recent quarterly earnings release, Clover Health reported a 153% increase in revenue, to $472 million. But there's still a long way to go before the company can become profitable. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2021 is expected to fall between negative $230 million and $250 million.
4. Stock Dilution
In November 2021, Clover announced a public offering of its common stock that would bring in about $300 million for the company to allocate to working capital and various corporate interests.
The Bottom Line
Clover has been the victim of a snowball of bearish catalysts that have cut the stock down to its true valuation.
