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

Clover Health Investments (NASDAQ:CLOV) released its earnings results on Wednesday. The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.02), Zacks reports. Clover Health Investments had a negative net margin of 2.58% and a negative return on equity of 16.63%. The firm had revenue of $749.19 million during the quarter, compared to analysts’ expectations of $714.89 million.

Here are the key takeaways from Clover Health Investments’ conference call:

• Simultaneous growth and profitability: Membership rose ~51% year-over-year to ~156k and Q1 GAAP net income was $27M on $749M revenue (up 62%), showing the company scaled while turning a profit.
• Differentiated, full‑risk model and data/AI edge: Clover retains full economics on a wide‑network PPO and is leveraging Clover Assistant plus early access to CMS‑aligned network data to drive AI‑driven care and cohort improvement.
• Clinical engagement is scaling: Over one‑third of members received Clover Assistant care and home‑care enrollments rose ~90% year‑over‑year, which management says is driving better inpatient trends and cohort outcomes.
• Improving unit economics and balance sheet: Q1 consolidated gross profit was $160M, insurance BER 86.5%, adjusted SG&A 16% of revenue (200 bps improvement), $418M cash and no debt, supporting self‑funded growth.
• Near‑term headwinds to monitor: Outpatient utilization remains elevated, Part D normalization and some prior‑period unfavorable development require close monitoring, and management intentionally moderated OEP growth to prioritize integration.

Clover Health Investments Trading Up 3.7%

Shares of Clover Health Investments stock traded up $0.11 during trading hours on Friday, reaching $2.93. The stock had a trading volume of 2,976,050 shares, compared to its average volume of 5,821,102. The firm has a market capitalization of $1.53 billion, a price-to-earnings ratio of -24.37 and a beta of 2.44. Clover Health Investments has a 1 year low of $1.58 and a 1 year high of $3.92. The firm has a 50 day simple moving average of $2.09 and a two-hundred day simple moving average of $2.40.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CLOV. Weiss Ratings reissued a “sell (d-)” rating on shares of Clover Health Investments in a research report on Friday, March 27th. Canaccord Genuity Group decreased their target price on shares of Clover Health Investments from $3.70 to $3.20 and set a “buy” rating on the stock in a research report on Friday, March 20th. Leerink Partners lowered their target price on shares of Clover Health Investments from $3.00 to $2.50 and set a “market perform” rating for the company in a research note on Thursday, March 5th. Finally, Wall Street Zen raised Clover Health Investments from a “sell” rating to a “hold” rating in a research note on Sunday, February 15th. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $2.90.

Insider Activity

In related news, CEO Brady Patrick Priest sold 175,000 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $2.17, for a total transaction of $379,750.00. Following the completion of the sale, the chief executive officer owned 1,998,584 shares of the company’s stock, valued at approximately $4,336,927.28. This represents a 8.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 24.07% of the company’s stock.

Institutional Investors Weigh In On Clover Health Investments

Several large investors have recently made changes to their positions in CLOV. Abel Hall LLC acquired a new position in shares of Clover Health Investments during the 4th quarter valued at $27,000. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Clover Health Investments in the fourth quarter valued at about $29,000. Quadrature Capital Ltd purchased a new stake in shares of Clover Health Investments during the 4th quarter valued at about $29,000. Allworth Financial LP lifted its position in Clover Health Investments by 218.9% during the 3rd quarter. Allworth Financial LP now owns 9,509 shares of the company’s stock worth $29,000 after acquiring an additional 6,527 shares in the last quarter. Finally, Envestnet Asset Management Inc. purchased a new position in Clover Health Investments in the 2nd quarter worth approximately $31,000. Institutional investors and hedge funds own 19.77% of the company’s stock.

Clover Health Investments Company Profile

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.