In a report released yesterday, Richard Close from Canaccord Genuity maintained a Buy rating on Clover Health Investments (CLOV – Research Report), with a price target of $4.50.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Richard Close has given his Buy rating due to a combination of factors that highlight Clover Health Investments’ strong performance and potential for growth. The company’s impressive execution in the first quarter, particularly in managing medical costs despite rapid membership growth, underscores its operational efficiency. Clover’s membership increased by over 30%, which contributed to a 33% rise in revenue, showcasing its ability to scale effectively.
Moreover, the company demonstrated strong control over its medical claims, achieving a better-than-expected Benefit Expense Ratio (BER) of 86.1%, which is below the anticipated 88.5%. This performance, along with the capabilities of the Clover Assistant platform, provides management with confidence in pursuing further growth. Additionally, the raised guidance for adjusted EBITDA and net income reflects the company’s robust financial health. These factors, combined with the strategic use of technology and home care services, position Clover Health Investments favorably against its peers, justifying the Buy rating and the $4.50 price target.
Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CLOV in relation to earlier this year.