Clover Health Investments (NASDAQ:CLOV) Releases Earnings Results, Beats Expectations By $0.04 EPS

Clover Health Investments (NASDAQ:CLOV) issued its earnings results on Wednesday. The company reported $0.03 EPS for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.04, FiscalAI reports. Clover Health Investments had a negative return on equity of 4.20% and a negative net margin of 0.74%. The firm had revenue of $759.30 million for the quarter, compared to analyst estimates 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 Stock Performance

Shares of CLOV traded up $0.40 during trading hours on Wednesday, hitting $4.69. The stock had a trading volume of 7,249,618 shares, compared to its average volume of 5,813,165. The firm has a 50-day moving average price of $4.51 and a 200 day moving average price of $3.56. Clover Health Investments has a fifty-two week low of $1.58 and a fifty-two week high of $5.59. The firm has a market capitalization of $2.49 billion, a price-to-earnings ratio of -93.78 and a beta of 2.52.

Insider Activity

In other Clover Health Investments news, CEO Conrad Wai sold 23,627 shares of Clover Health Investments stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $4.68, for a total value of $110,574.36. Following the completion of the transaction, the chief executive officer owned 1,042,072 shares of the company’s stock, valued at approximately $4,876,896.96. The trade was a 2.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Andrew Toy sold 62,176 shares of Clover Health Investments stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $4.68, for a total transaction of $290,983.68. Following the completion of the transaction, the chief executive officer directly owned 9,078,334 shares of the company’s stock, valued at $42,486,603.12. The trade was a 0.68% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 856,371 shares of company stock worth $3,870,740 in the last ninety days. Corporate insiders own 23.51% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have commented on CLOV. UBS Group lifted their price objective on shares of Clover Health Investments from $4.75 to $5.00 and gave the company a “neutral” rating in a research note on Thursday, August 6th. Canaccord Genuity Group increased their price objective on shares of Clover Health Investments from $4.20 to $5.50 and gave the stock a “buy” rating in a research note on Tuesday, July 21st. Wall Street Zen cut shares of Clover Health Investments from a “strong-buy” rating to a “buy” rating in a report on Sunday, August 16th. Needham & Company LLC began coverage on shares of Clover Health Investments in a report on Wednesday, October 28th. They set a “buy” rating and a $6.00 target price for the company. Finally, Deutsche Bank Aktiengesellschaft started coverage on shares of Clover Health Investments in a research report on Thursday, September 10th. They set a “buy” rating and a $6.00 target price for the company. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $5.00.

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.