Bank of America Securities analyst Adam Ron reiterated a Sell rating on Oscar Health (OSCR – Research Report) yesterday and set a price target of $13.50.
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Adam Ron has given his Sell rating due to a combination of factors affecting Oscar Health. Although the company has largely met its 2025 guidance targets, the end of the year revealed some issues that have clouded the company’s future outlook. The fourth quarter results showed a miss in revenue and Medical Loss Ratio (MLR) targets, despite hitting the Adjusted EBITDA target. This discrepancy raises concerns about Oscar Health’s ability to perform consistently, particularly with a 400 basis point core MLR miss that was only partially offset by better-than-expected SG&A savings.
Furthermore, the company’s enrollment dynamics introduce additional uncertainty. Oscar Health saw significant membership growth, but new subsidy eligibility checks by CMS might lead some members to drop their coverage, which could negatively impact revenue and MLR. With limited positive catalysts in the near term and the ongoing ACA subsidy debate, these factors contribute to a less favorable outlook, prompting Adam Ron to maintain an Underperform rating with a price objective below the current trading price.
Based on the recent corporate insider activity of 47 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 OSCR in relation to earlier this year.