Clover Health Investments (NASDAQ:CLOV) Issues Earnings Results, Misses Estimates By $0.02 EPS
by Renee Jackson · The Cerbat GemClover Health Investments (NASDAQ:CLOV – Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.05 EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.02), Zacks reports. Clover Health Investments had a negative return on equity of 25.17% and a negative net margin of 4.45%.
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 2.7%
Clover Health Investments stock traded up $0.07 during trading hours on Wednesday, reaching $2.68. 5,166,919 shares of the company were exchanged, compared to its average volume of 5,274,036. The firm has a market cap of $1.41 billion, a price-to-earnings ratio of -15.76 and a beta of 2.44. The stock has a 50-day moving average of $2.07 and a 200 day moving average of $2.39. Clover Health Investments has a 12 month low of $1.58 and a 12 month high of $3.92.
Analyst Upgrades and Downgrades
CLOV has been the topic of a number of research reports. Wall Street Zen upgraded Clover Health Investments from a “sell” rating to a “hold” rating in a report on Sunday, February 15th. Canaccord Genuity Group dropped their price objective on Clover Health Investments from $3.70 to $3.20 and set a “buy” rating on the stock in a report on Friday, March 20th. Weiss Ratings restated a “sell (d-)” rating on shares of Clover Health Investments in a report on Friday, March 27th. Finally, Leerink Partners dropped their price objective on Clover Health Investments from $3.00 to $2.50 and set a “market perform” rating on the stock in a report on Thursday, March 5th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Clover Health Investments has an average rating of “Hold” and an average price target of $2.90.
View Our Latest Analysis on Clover Health Investments
Insider Transactions at Clover Health Investments
In other Clover Health Investments news, CEO Brady Patrick Priest sold 175,000 shares of the company’s stock in a transaction that occurred on Wednesday, March 4th. The stock was 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 $4,336,927.28. This represents a 8.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 24.07% of the stock is owned by insiders.
Institutional Investors Weigh In On Clover Health Investments
Large investors have recently added to or reduced their stakes in the stock. Allworth Financial LP boosted its position in Clover Health Investments by 218.9% during the third quarter. Allworth Financial LP now owns 9,509 shares of the company’s stock worth $29,000 after purchasing an additional 6,527 shares during the period. Integrated Wealth Concepts LLC bought a new stake in shares of Clover Health Investments in the first quarter valued at approximately $37,000. Envestnet Asset Management Inc. bought a new stake in shares of Clover Health Investments in the second quarter valued at approximately $31,000. Abel Hall LLC bought a new stake in shares of Clover Health Investments in the fourth quarter valued at approximately $27,000. Finally, Quadrature Capital Ltd bought a new stake in shares of Clover Health Investments in the fourth quarter valued at approximately $29,000. Institutional investors own 19.77% of the company’s stock.
About Clover Health Investments
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.