Clover Health Investments (NASDAQ:CLOV) Announces Earnings Results, Beats Estimates By $0.01 EPS

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

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%

NASDAQ CLOV traded down $0.13 during midday trading on Wednesday, hitting $4.14. The company had a trading volume of 4,437,271 shares, compared to its average volume of 6,474,274. The firm has a 50-day moving average price of $4.61 and a 200-day moving average price of $3.13. The company has a market capitalization of $2.18 billion, a PE ratio of -34.50 and a beta of 2.47. Clover Health Investments has a twelve month low of $1.58 and a twelve month high of $5.59.

Insider Buying and Selling

In related news, Director Carladenise Armbrister Edwards sold 67,160 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $3.42, for a total value of $229,687.20. Following the transaction, the director owned 285,432 shares in the company, valued at approximately $976,177.44. This trade represents a 19.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Joseph Frank Oldakowski sold 12,102 shares of the business’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $4.86, for a total value of $58,815.72. Following the completion of the transaction, the vice president directly owned 299,067 shares of the company’s stock, valued at approximately $1,453,465.62. This trade represents a 3.89% decrease in their position. The SEC filing for this sale provides additional information. 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 715,884 shares of company stock valued at $3,202,372 in the last ninety days. Insiders own 23.51% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Virtu Financial LLC lifted its stake in Clover Health Investments by 532.9% during the fourth quarter. Virtu Financial LLC now owns 209,204 shares of the company’s stock worth $492,000 after purchasing an additional 176,150 shares during the last quarter. Tudor Investment Corp ET AL bought a new position in shares of Clover Health Investments in the 4th quarter valued at $458,000. Quadrature Capital Ltd acquired a new position in shares of Clover Health Investments during the 4th quarter worth $29,000. Schonfeld Strategic Advisors LLC bought a new stake in shares of Clover Health Investments during the 4th quarter worth $29,000. Finally, Abel Hall LLC bought a new stake in shares of Clover Health Investments during the 4th quarter worth $27,000. 19.77% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Wall Street Zen raised Clover Health Investments from a “hold” rating to a “buy” rating in a report on Saturday, June 6th. Canaccord Genuity Group boosted their target price on shares of Clover Health Investments from $4.20 to $5.50 and gave the company a “buy” rating in a research report on Tuesday, July 21st. Weiss Ratings restated a “sell (d-)” rating on shares of Clover Health Investments in a research note on Wednesday, June 24th. Finally, UBS Group raised their price target on shares of Clover Health Investments from $2.75 to $4.75 and gave the stock a “neutral” rating in a research report on Thursday, June 11th. 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. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $4.25.

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.