Leerink Partners analyst Whit Mayo reiterated a Hold rating on Clover Health Investments (CLOV – Research Report) on November 7 and set a price target of $1.00.
Whit Mayo has given his Hold rating due to a combination of factors. Despite Clover Health Investments’ (CLOV) strong performance in the third quarter of 2023, marked by improved management of medical costs, the company has not shown substantial growth in membership and revenue. Mayo also expresses skepticism about the company’s ability to maintain these positive trends and overcome obstacles to long-term profitability. Furthermore, the potential future capital needs of the company remain a risk factor.
CLOV’s medical costs have been well-managed and its Medicare Advantage membership continues to decrease. However, the company’s revenue missed consensus by 2.5%, attributed to continuing membership declines. The company aims to reach profitability by 2024, but if this goal isn’t met, additional capital may be required. This intention to break-even is centered around reducing involvement in the ACO Reach program and achieving savings in General and Administrative expenses. However, Mayo believes that most of these efforts will stem from initiatives to reduce costs, considering the company’s insurance Medical Loss Ratio.
In another report released on November 6, Citi also maintained a Hold rating on the stock with a $1.50 price target.
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Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CLOV in relation to earlier this year.
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Clover Health Investments (CLOV) Company Description:
Clover Health Investments Corp is a healthcare technology company. It uses its proprietary technology platform to collect, structure, and analyze health and behavioral data to improve medical outcomes and lower costs for patients.
Read More on CLOV:
- Clover Health price target lowered to $2 from $3 at Canaccord
- Clover Health reports Q3 revenue $482.07M, consensus $494.6M
- Clover Health Reports Third Quarter 2023 Results; Highlights Continued Improvement in Financial Performance and Improved 2023 Guidance
- Clover Health options imply 11.6% move in share price post-earnings
- Options Volatility and Implied Earnings Moves Today, November 06, 2023
