Analyst Richard Close of Canaccord Genuity maintained a Buy rating on Clover Health Investments, retaining the price target of $4.10.
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Richard Close has given his Buy rating due to a combination of factors that indicate a promising outlook for Clover Health Investments. The company is expected to benefit significantly from the 2026 Medicare Advantage (MA) rates, which are projected to grow by an effective average of 9.04%. This growth, combined with Clover’s achievement of a 4-star rating for its PPO plan, is anticipated to enhance revenue per member and provide a substantial tailwind for the company.
Furthermore, Clover’s management has demonstrated effective cost management strategies, particularly in handling Part A and Part B expenditures, despite some challenges with higher Part D drug spending. The upcoming reduction in stock-based compensation, following the final vesting of founders’ grants, is also expected to positively impact the company’s financials. Overall, these factors, along with the potential for accelerated membership growth in 2026, underpin Richard Close’s optimistic Buy rating for Clover Health Investments.
Based on the recent corporate insider activity of 79 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.