Clover Health Investments (NASDAQ:CLOV) Announces Quarterly Earnings Results

Clover Health Investments (NASDAQ:CLOV) released its quarterly earnings results on Wednesday. The company reported $0.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.01, FiscalAI reports. The business had revenue of $743.17 million during the quarter, compared to analyst estimates of $728.27 million. Clover Health Investments had a negative return on equity of 16.52% and a negative net margin of 2.58%.

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

• Strong growth and profitability: Second-quarter Medicare Advantage membership rose 48% year over year to 157,000, while revenue increased 56% to $743 million, adjusted EBITDA reached $41 million, and GAAP net income was $28 million.
• Raised 2026 guidance: Clover increased its full-year outlook to 156,000–158,000 average members, $2.92–$3.00 billion of revenue, $525–$555 million of gross profit, $70–$85 million of adjusted EBITDA, and $20–$35 million of GAAP net income.
• Improving cohort economics support 2027: Management said members generally improve by about $70 in gross profit per member per month from year one to year two, with the large 2025 cohort expected to enter year three in 2027. The company expects increasing Clover Assistant adoption and member maturation to drive further profitability.
• Four-and-a-half-star rating remains subject to litigation: All Medicare Advantage members are currently enrolled in plans receiving four-and-a-half-star payment treatment for 2027, providing additional flexibility for benefits, growth, and margins, but CMS has appealed the court decision.
• Operating leverage and cash generation improved: Adjusted SG&A declined to 15% of revenue, cash and investments totaled $443 million with no debt, and operating cash flow reached $133 million through the first half. Clover also plans to apply AI to back-office operations to improve claims processing and reduce administrative costs.

Clover Health Investments Trading Down 3.0%

CLOV stock traded down $0.13 during trading on Wednesday, reaching $4.14. The company’s stock had a trading volume of 4,437,271 shares, compared to its average volume of 4,378,459. The company’s fifty day moving average is $4.61 and its 200-day moving average is $3.13. Clover Health Investments has a 1 year low of $1.58 and a 1 year high of $5.59.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on CLOV shares. Wall Street Zen raised Clover Health Investments from a “hold” rating to a “buy” rating in a research report on Saturday, June 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Clover Health Investments in a report on Wednesday, June 24th. UBS Group raised their target price on shares of Clover Health Investments from $2.75 to $4.75 and gave the stock a “neutral” rating in a research note on Thursday, June 11th. Finally, Canaccord Genuity Group lifted their price target on shares of Clover Health Investments from $4.20 to $5.50 and gave the company a “buy” rating in a report on Tuesday, July 21st. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Clover Health Investments has an average rating of “Hold” and an average target price of $4.25.

Insiders Place Their Bets

In other news, Director Carladenise Armbrister Edwards sold 67,160 shares of the company’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $3.42, for a total value of $229,687.20. Following the completion of the transaction, the director owned 285,432 shares of the company’s stock, valued at $976,177.44. This represents a 19.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Brady Patrick Priest sold 98,039 shares of the company’s stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $3.52, for a total transaction of $345,097.28. Following the transaction, the chief executive officer owned 2,040,222 shares of the company’s stock, valued at approximately $7,181,581.44. This represents a 4.58% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 715,884 shares of company stock valued at $3,202,372. Insiders own 23.51% of the company’s stock.

Institutional Trading of Clover Health Investments

Several hedge funds have recently modified their holdings of CLOV. Alliancebernstein L.P. boosted its position in shares of Clover Health Investments by 1.2% during the 3rd quarter. Alliancebernstein L.P. now owns 415,985 shares of the company’s stock valued at $1,273,000 after acquiring an additional 5,085 shares during the last quarter. Allworth Financial LP raised its stake in Clover Health Investments by 218.9% during the third quarter. Allworth Financial LP now owns 9,509 shares of the company’s stock valued at $29,000 after purchasing an additional 6,527 shares in the last quarter. Verition Fund Management LLC lifted its position in Clover Health Investments by 11.3% during the fourth quarter. Verition Fund Management LLC now owns 65,777 shares of the company’s stock valued at $155,000 after purchasing an additional 6,677 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of Clover Health Investments in the 1st quarter worth $37,000. Finally, Envestnet Asset Management Inc. purchased a new position in shares of Clover Health Investments in the 2nd quarter worth $31,000. 19.77% of the stock is owned by hedge funds and other institutional investors.

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.