Clover Health Investments (CLOV) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: N/A
• Average Volume (3M): 4.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 15.23%
• EPS Growth: 38.79%
• Country: US
• Employees: 570
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): -0.05
• Shares Outstanding: 424,304,900
• 10 Day Avg. Volume: 6,156,396
• 30 Day Avg. Volume: 4,981,831
• PEG Ratio: 0.45
• Price to Book (P/B): 4.52
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 46.37
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: -17.22
• 1Y Price Target: $3.70
• Price Target Upside: 63.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-11.89% Downside)

The score is held back primarily by inconsistent fundamentals—ongoing net losses and a TTM return to significant cash burn—despite a debt-free balance sheet and improving loss profile. Technicals are also mildly weak with the stock below major longer-term averages. Offsetting this, the latest earnings discussion and recent updates point to strong membership growth and a plausible path to improved profitability, but near-term medical cost pressure and reduced 2025 EBITDA guidance keep risk elevated.

Positive Factors

Membership Scale & Retention

Rapid, sustained membership growth combined with >95% retention increases predictable capitation revenue and spreads fixed administrative costs. Scale improves bargaining with providers, enhances cohort economics, and materially supports a durable path to margin expansion and eventual GAAP profitability.

Technology Platform Adoption

Third-party clinician adoption of Counterpart/Counterpart Assistant diversifies revenue beyond insurance premiums, creates product-led distribution, and embeds Clover into care workflows. A scalable tech asset can sustainably improve utilization management and create differentiation versus pure-play insurers over the medium term.

Conservative Balance Sheet

A debt-free balance sheet reduces refinancing and interest-rate risk, providing flexibility to invest in growth (members, tech, quality) and to absorb medical-cost volatility. This structural strength lengthens the runway to reach sustainable profitability without immediate liquidity stress.

Negative Factors

Ongoing Unprofitability

Despite margin improvement, persistent GAAP losses mean returns on equity remain negative and the business remains dependent on achieving multi-period operating leverage. Continued unprofitability raises structural funding risk and limits reinvestment unless cohorts turn consistently profitable.

Volatile Cash Generation

Reversal from positive 2024 cash flow to material TTM cash burn signals unstable working-capital and operating dynamics. Structural cash volatility constrains capital allocation, may necessitate external financing, and increases execution risk as the company scales membership and invests in quality.

Medical Cost Pressure & New-Member Profitability

High benefit expense ratios driven by utilization and loss-making new-member cohorts structurally compress margins and slow earnings conversion from membership growth. Without sustained improvement in cohort economics or rate adjustments, scaling membership can worsen near-term profitability.

Clover Health Investments Business Overview & Revenue Model

Company Description

Clover Health Investments, Corp. operates as a medicare advantage insurer in the United States. The company through its Clover Assistant, a software platform that provides preferred provider organization and health maintenance organization health plans for medicare-eligible consumers. It also focuses on non-insurance businesses. Clover Health Investments, Corp. was incorporated in 2014 and is based in Franklin, Tennessee.

How the Company Makes Money

Clover Health makes money primarily through its Medicare Advantage plans, where it receives a fixed monthly payment from the Centers for Medicare & Medicaid Services (CMS) for each enrolled member. This payment is used to cover healthcare costs for members, allowing Clover to profit from efficiently managing these costs through improved care and preventative measures. The company's revenue model is heavily reliant on its ability to reduce medical expenses through data-driven insights provided by the Clover Assistant, which aims to optimize treatment plans and improve patient outcomes. Significant partnerships with healthcare providers and a focus on expanding its member base within the Medicare Advantage market are key factors contributing to its earnings.

Clover Health Investments Financial Statement Overview

Summary

Improving turnaround trends (TTM revenue growth ~10% and losses narrowed materially vs. 2021–2023) and a debt-free balance sheet support stability, but the business remains unprofitable and TTM cash flow flipped back to material burn (OCF and FCF around -$85M), keeping financial quality below average.

Income Statement

Revenue is growing, improving from low-single-digit growth in 2024 to 10.3% in TTM (Trailing-Twelve-Months), and profitability has structurally improved versus 2021–2023 (net margin narrowed from -41.1% in 2021 and -16.9% in 2023 to about -3.3% in TTM). However, the company is still unprofitable with negative operating profit and negative net income in both 2024 and TTM, and gross margin has compressed versus 2024 (26.6% to 21.2%), signaling ongoing pressure from medical costs/pricing and limiting earnings leverage.

Balance Sheet

The balance sheet is conservatively levered, with total debt at zero in 2024 and TTM (Trailing-Twelve-Months), which reduces refinancing and interest-rate risk. Equity is positive and relatively stable around $341M in both 2024 and TTM, though total assets have edged down (from $581M in 2024 to $560M in TTM). The key weakness is continued losses, which translate into negative returns for shareholders (return on equity remains negative), meaning balance-sheet strength ultimately depends on achieving sustained profitability.

Cash Flow

Cash generation is volatile. 2024 produced positive operating and free cash flow (~$35M and ~$33M), but TTM (Trailing-Twelve-Months) reverted to cash burn (operating cash flow -$85M; free cash flow -$86M). While cash burn is materially improved versus the deep outflows seen in 2021–2022, the latest TTM reversal raises execution risk and suggests working-capital and operating performance are not yet consistently self-funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.77B	1.37B	1.26B	1.10B	1.47B	672.89M
Gross Profit	375.61M	364.80M	255.95M	103.48M	-79.18M	82.81M
EBITDA	-56.10M	-44.94M	-207.63M	-252.03M	-569.60M	-78.73M
Net Income	-58.32M	-43.01M	-213.36M	-339.57M	-587.76M	-136.39M
Balance Sheet
Total Assets	559.66M	580.74M	570.67M	808.62M	950.80M	267.25M
Cash, Cash Equivalents and Short-Term Investments	202.84M	221.54M	242.69M	334.76M	615.25M	96.71M
Total Debt	0.00	0.00	4.66M	5.86M	27.83M	138.36M
Total Liabilities	218.73M	239.60M	284.28M	451.73M	411.49M	880.45M
Stockholders Equity	340.93M	341.14M	286.39M	356.89M	535.41M	-617.10M
Cash Flow
Free Cash Flow	-86.38M	33.29M	-116.45M	-208.39M	-283.05M	-119.19M
Operating Cash Flow	-84.61M	34.84M	-115.87M	-203.93M	-282.33M	-118.50M
Investing Cash Flow	37.63M	565.00K	140.01M	95.13M	-435.45M	141.31M
Financing Cash Flow	-50.92M	-17.36M	-33.86M	-4.96M	925.39M	1.94M

Clover Health Investments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLOV, the sentiment is Negative. The current price of 2.27 is below the 20-day moving average (MA) of 2.53, below the 50-day MA of 2.52, and below the 200-day MA of 2.88, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 5.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLOV.

Clover Health Investments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOH	71 Outperform	$9.23B	11.13	19.71%	―	13.71%	-18.02%
HUM	69 Neutral	$23.48B	18.43	7.15%	1.38%	9.87%	-5.58%
ALHC	65 Neutral	$4.51B	-193.39	-15.06%	―	47.39%	85.35%
CNC	58 Neutral	$21.29B	-4.00	-21.93%	―	14.92%	-286.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CLOV	48 Neutral	$1.16B	-19.34	-16.90%	―	15.23%	38.79%
OSCR	45 Neutral	$3.80B	-12.76	-22.32%	―	37.38%	-912.18%

Clover Health Investments Corporate Events

Clover Health Projects 2026 Profitability as Membership Surges

On December 16, 2025, Clover Health Investments announced that CEO Andrew Toy would present at the 43rd Annual J.P. Morgan Healthcare Conference on January 15, 2026, with the presentation webcast available via the company’s website, underscoring Clover’s efforts to showcase its strategy and performance to the investment community. On January 14, 2026, the company reported that its Medicare Advantage PPO membership grew 53% year over year during the latest Annual Election Period, bringing total membership to about 153,000 as of January 1, 2026, driven by disciplined expansion in core markets, strong member retention above 95%, and the continued rollout of its AI-powered Clover Assistant and Home Care offerings; management highlighted improving cohort economics, enhanced Star Ratings, and operating leverage as factors that position Clover for compounding earnings, margin expansion, and a potential first-ever full-year GAAP net income profitability in 2026, reinforcing its competitive standing in Medicare Advantage even as many rivals retrench.

The most recent analyst rating on (CLOV) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Clover Health Investments stock, see the CLOV Stock Forecast page.

Clover Health Unveils Counterpart Assistant Adoption

On December 10, 2025, Clover Health Investments announced the performance outcomes of its subsidiary, Counterpart Health, Inc., and the adoption of its Counterpart Assistant technology by third-party customer clinicians. This development highlights the company’s strategic efforts to expand its technology solutions in the healthcare sector, particularly for Medicare-eligible populations, potentially impacting its market position and stakeholder interests.

The most recent analyst rating on (CLOV) stock is a Buy with a $3.70 price target. To see the full list of analyst forecasts on Clover Health Investments stock, see the CLOV Stock Forecast page.

Clover Health Addresses Shareholder Concerns Post Q3 Earnings

On November 12, 2025, Clover Health Investments released a supplemental Q&A to address shareholder questions following their third quarter 2025 earnings announcement. The company reported elevated medical cost pressures due to increased utilization among new member cohorts, which impacted margins. Despite these challenges, Clover Health remains optimistic about 2026, citing a 4 Star payment year, favorable rate updates, and increased Clover Assistant coverage as factors that will enhance profitability and growth. The company is also implementing initiatives to improve pharmacy management and customer service to strengthen its Star Ratings, which have been affected by non-clinical factors.

The most recent analyst rating on (CLOV) stock is a Buy with a $3.70 price target. To see the full list of analyst forecasts on Clover Health Investments stock, see the CLOV Stock Forecast page.

Chelsea Clinton Departs Clover Health Board of Directors

On October 31, 2025, Chelsea Clinton announced her departure from Clover Health’s Board of Directors after over eight years of service. Her tenure saw Clover’s transformation from a private company to a publicly traded entity serving over 100,000 seniors. Clinton’s contributions were pivotal in shaping the company’s mission-driven approach and technological advancements in healthcare. The Board plans to fill her vacancy promptly, maintaining its commitment to a diverse and experienced leadership team.

The most recent analyst rating on (CLOV) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Clover Health Investments stock, see the CLOV Stock Forecast page.