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

Clover Health Investments (NASDAQ:CLOV) announced its quarterly earnings data on Wednesday. The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.07 by ($0.02), Zacks reports. Clover Health Investments had a negative net margin of 4.45% and a negative return on equity of 25.17%.

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 Stock Performance

Shares of CLOV traded up $0.07 during trading hours on Wednesday, hitting $2.68. The stock had a trading volume of 5,166,919 shares, compared to its average volume of 5,274,036. The firm has a 50-day moving average price of $2.07 and a 200 day moving average price of $2.39. Clover Health Investments has a fifty-two week low of $1.58 and a fifty-two week high of $3.92. The firm has a market capitalization of $1.41 billion, a price-to-earnings ratio of -15.76 and a beta of 2.44.

Insider Activity

In related news, CEO Brady Patrick Priest sold 175,000 shares of the business’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $2.17, for a total value of $379,750.00. Following the completion of the transaction, the chief executive officer directly owned 1,998,584 shares in the company, valued at $4,336,927.28. The trade was a 8.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 24.07% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Clover Health Investments

Several large investors have recently made changes to their positions in CLOV. Bank of America Corp DE increased its holdings in Clover Health Investments by 217.5% in the 2nd quarter. Bank of America Corp DE now owns 4,012,744 shares of the company’s stock worth $11,196,000 after acquiring an additional 2,748,783 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in Clover Health Investments by 69.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,634,325 shares of the company’s stock worth $8,542,000 after acquiring an additional 1,494,043 shares in the last quarter. First Trust Advisors LP purchased a new stake in Clover Health Investments in the 2nd quarter worth $4,149,000. UBS Group AG increased its holdings in Clover Health Investments by 155.5% in the 3rd quarter. UBS Group AG now owns 2,282,113 shares of the company’s stock worth $6,983,000 after acquiring an additional 1,388,761 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in Clover Health Investments by 105.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,781,239 shares of the company’s stock worth $4,186,000 after acquiring an additional 914,829 shares in the last quarter. 19.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

CLOV has been the subject of several research reports. Weiss Ratings restated a “sell (d-)” rating on shares of Clover Health Investments in a research note on Friday, March 27th. Leerink Partners decreased 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. Wall Street Zen upgraded shares of Clover Health Investments from a “sell” rating to a “hold” rating in a research note on Sunday, February 15th. Finally, Canaccord Genuity Group decreased their target price on shares of Clover Health Investments from $3.70 to $3.20 and set a “buy” rating for the company in a research note on Friday, March 20th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $2.90.

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.