Clover Health Investments (CLOV) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: N/A
• Average Volume (3M): 8.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -4.87%
• EPS Growth: 66.16%
• Country: US
• Employees: 570
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Healthcare Plans
• EPS (TTM): -0.02
• Shares Outstanding: 420,139,400
• 10 Day Avg. Volume: 5,687,541
• 30 Day Avg. Volume: 8,778,066
• 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: 1.04
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 3.70
• Enterprise Value/Ebitda: -35.00
• 1Y Price Target: $3.65
• Price Target Upside: 35.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 50 Neutral
• Price Target: ―

Clover Health's stock score is influenced by its ongoing financial challenges, despite positive developments in operational metrics and an encouraging earnings call. The financial performance remains a significant concern due to negative margins and revenue decline. Technical indicators signal potential weakness, while valuation remains unattractive due to losses. The company's achievements in profitability and membership growth offer potential for future improvement.

Positive Factors

Financial Performance

Clover reported solid 2Q results, besting consensus estimates on the top and bottom line.

Growth Strategy

Clover's execution in 1Q was impressive considering the strong membership growth achieved during last fall's AEP and this year's OEP enrollment periods.

Technology Impact

Clover's CA software platform appears to be delivering superior performance in driving health outcomes and lower medical costs.

Negative Factors

Cash Flow Challenges

Clover's cash from operations was ($16.3) million in 1Q with cash and cash equivalents declining to $390.8 million.

Expense Management

The insurance benefit expense ratio came in higher than estimates, causing some concern and a pullback in shares.

Valuation Concerns

The price target was lowered to $2.50 as a result of applying a lower terminal multiple.

Clover Health Investments Business Overview & Revenue Model

Company Description

Clover Health Investments (CLOV) is a healthcare technology company focused on improving health outcomes and lowering costs for patients. Operating primarily within the Medicare Advantage space, Clover Health utilizes its proprietary software platform, the Clover Assistant, to provide personalized healthcare recommendations to physicians and patients. The company's services are designed to enhance the quality of care while streamlining administrative operations for healthcare providers.

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

Clover Health Investments shows signs of improvement in cash flow and equity position, but continues to face challenges in revenue growth and profitability. The income statement highlights ongoing struggles with negative margins, while the balance sheet demonstrates a stronger equity position with zero debt. Despite these improvements, the company must address its revenue decline and work towards achieving profitability for long-term financial health.

Income Statement

Clover Health Investments has faced declining revenue trends, with a notable drop from $3.47 billion in 2022 to $1.37 billion in 2024. The company has consistently reported negative net income and EBIT margins, indicating ongoing profitability challenges. The net profit margin remains negative, further emphasizing financial struggles, despite a slight improvement in gross profit margin from 2023 to 2024.

Balance Sheet

The balance sheet shows some positive aspects with a debt-free position by 2024 and improving stockholders' equity. However, the equity ratio is moderate at approximately 58.7%, and the historical negative equity in 2020 indicates past financial instability. The return on equity remains negative due to persistent net losses.

Cash Flow

The cash flow statement reveals a significant turnaround in operating cash flow from negative $115.87 million in 2023 to positive $82.45 million in 2024, resulting in positive free cash flow. However, the company's history of negative free cash flow raises concerns about sustainable cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61B	1.37B	1.26B	1.10B	1.47B	672.89M
Gross Profit	383.65M	364.80M	255.95M	103.48M	-79.18M	82.81M
EBITDA	-40.58M	-44.94M	-207.63M	-252.03M	-569.60M	-78.73M
Net Income	-43.10M	-43.01M	-213.36M	-339.57M	-587.76M	-136.39M
Balance Sheet
Total Assets	574.99M	580.74M	570.67M	808.62M	950.80M	267.25M
Cash, Cash Equivalents and Short-Term Investments	199.50M	221.54M	242.69M	555.29M	791.19M	151.10M
Total Debt	0.00	0.00	4.66M	5.86M	27.83M	806.21K
Total Liabilities	230.81M	239.60M	284.28M	460.88M	411.49M	835.63M
Stockholders Equity	344.18M	341.14M	286.39M	347.74M	539.32M	-568.38M
Cash Flow
Free Cash Flow	-48.20M	33.29M	-116.45M	-208.39M	-283.05M	-2.92M
Operating Cash Flow	-46.73M	34.84M	-115.87M	-203.93M	-282.33M	-2.23M
Investing Cash Flow	30.92M	565.00K	140.01M	95.13M	-435.45M	-828.00M
Financing Cash Flow	-50.31M	-17.36M	-33.86M	-4.96M	925.39M	858.23M

Clover Health Investments Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLOV, the sentiment is Neutral. The current price of 2.69 is above the 20-day moving average (MA) of 2.59, below the 50-day MA of 2.80, and below the 200-day MA of 3.40, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 57.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLOV.

Clover Health Investments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	71 Outperform	$35.95B	22.94	9.03%	1.19%	9.88%	-7.25%
MOH	70 Outperform	$9.47B	8.62	23.93%	―	16.12%	10.99%
OSCR	68 Neutral	$4.35B	49.61	-14.04%	―	48.29%	-1436.25%
CNC	63 Neutral	$14.08B	7.13	7.50%	―	12.96%	-23.25%
ALHC	61 Neutral	$3.11B	―	-38.50%	―	49.46%	66.89%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
CLOV	50 Neutral	$1.37B	―	-12.59%	―	-4.87%	66.16%

Clover Health Investments Corporate Events

Clover Health Announces Board Leadership Change

On April 21, 2025, Clover Health Investments announced that Lee A. Shapiro, a member of its Board of Directors and Chairman of the Audit and Nominating and Corporate Governance Committees, will not stand for re-election due to his new role as Chairman of the American Heart Association. His departure will be effective after the Company’s Annual Meeting of Shareholders on June 10, 2025. The Board plans to fill the vacancy promptly, with Thomas L. Tran stepping into Shapiro’s roles as Chairman of the Audit Committee and the Nominating and Corporate Governance Committee. This transition marks a significant change in Clover Health’s leadership, with Tran expected to uphold high standards of financial integrity and transparency, continuing the legacy of rigorous oversight and accountability established by Shapiro.

Spark’s Take on CLOV Stock

According to Spark, TipRanks’ AI Analyst, CLOV is a Neutral.

Clover Health’s stock score is influenced by its ongoing financial challenges, despite positive developments in operational metrics and an encouraging earnings call. The financial performance remains a significant concern due to negative margins and revenue decline. Technical indicators signal potential weakness, while valuation remains unattractive due to losses. The company’s achievements in profitability and membership growth offer potential for future improvement.

To see Spark’s full report on CLOV stock, click here.