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Clover Health Investments (CLOV)
NASDAQ:CLOV
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Clover Health Investments
(NASDAQ:CLOV)
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Rating:50Neutral
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
Medicare Advantage Membership Growth
Strong membership growth in Medicare Advantage indicates successful market penetration and customer retention, supporting long-term revenue stability.
Improved Star Ratings
High star ratings enhance Clover's competitive position, potentially increasing CMS bonuses and attracting more members, boosting future revenue.
Strong Financial Position
A strong cash position provides financial flexibility for strategic investments and operational stability, supporting long-term growth initiatives.
Negative Factors
Declining Revenue Trends
Declining revenue poses a risk to financial health, indicating challenges in maintaining market share and necessitating strategic adjustments for recovery.
Negative Margins
Persistent negative margins highlight ongoing profitability challenges, which could hinder reinvestment capabilities and long-term financial sustainability.
Higher SG&A Expenses
Rising SG&A expenses can pressure profitability, requiring efficient cost management to ensure investments translate into sustainable growth.
Clover Health Investments (CLOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.18B
Dividend YieldN/A
Average Volume (3M)9.86M
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth15.23%
EPS Growth38.79%
CountryUS
Employees570
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)-0.05
Shares Outstanding424,304,900
10 Day Avg. Volume6,090,631
30 Day Avg. Volume9,861,090
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)4.52
Price to Sales (P/S)1.13
P/FCF Ratio46.37
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit4.18
Enterprise Value/Ebitda-27.97
Forecast
1Y Price Target
$3.35Price Target Upside46.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.11
Revenue Forecast (FY)$1.89B
Clover Health Investments Business Overview & Revenue Model
Company DescriptionClover 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 MoneyClover 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 Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business areas, highlighting which segments drive growth and which may need strategic adjustments.
Shows how revenue is distributed across different business areas, highlighting which segments drive growth and which may need strategic adjustments.
Data provided by:
Main Street Data
Main Street DataClover Health Investments Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
While Clover Health reported significant membership and revenue growth, positive EBITDA, and strong retention rates, the call highlighted challenges with new member profitability, lowered financial guidance, and increased medical costs, leading to a balanced outlook.Q3-2025 Updates
Positive Updates
Membership and Revenue Growth
Clover Health saw a 35% increase in membership and nearly 50% growth in revenue year-over-year for the third quarter.
Clover Assistant Performance
Clover Assistant was noted as a strong driver, with managed returning cohorts improving year-over-year and achieving top PPO in the country for the second year running on HEDIS clinical quality scores.
Positive Adjusted EBITDA
Despite challenges, Clover Health maintained adjusted EBITDA profitability year-to-date with $45 million in adjusted EBITDA.
Strong Retention Rates
Clover Health reported an industry-leading retention rate above 90% for 2025, reflecting strong member satisfaction and retention.
Negative Updates
Lowered Guidance for 2025 Adjusted EBITDA
Clover Health lowered its guidance for 2025 adjusted EBITDA profitability due to higher-than-expected new member growth and increased utilization.
Challenges with New Member Profitability
The company faced margin pressure from new members, who were generally loss-making in their first year, affecting overall profitability.
Low Star Ratings
Clover Health received a 3.5-star rating, which does not meet their aspiration of a 4-star plan, impacting financial performance.
Increased Utilization and Medical Costs
The third quarter saw increased utilization and higher medical costs, particularly in inpatient and outpatient services, contributing to margin pressure.
Company Guidance
During Clover Health's third quarter 2025 earnings call, the company revised its guidance for the full year 2025, highlighting a number of key metrics. The company expects to add approximately 44,000 gross new members, reaching an estimated year-end total of around 113,000 net members. This growth has impacted their adjusted EBITDA profitability for 2025, which is now projected to be between $15 million and $30 million, a reduction from previous expectations. Insurance revenue is anticipated to be between $1.850 billion and $1.880 billion, reflecting a 39% year-over-year growth at the midpoint. The adjusted SG&A is expected to improve, ranging from $325 million to $335 million, marking a 400 basis point improvement year-over-year. However, insurance benefit ratios (BER) are forecasted between 90% and 91% due to elevated utilization trends and strong new membership growth. Looking ahead, Clover Health remains optimistic about 2026, anticipating positive GAAP net income driven by various factors, including strong member retention, a larger profitable returning member cohort, a 4-star payment year for PPO plans, and continued SG&A leverage.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 2024.30
Negative
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.40
Negative
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.45
Neutral
| 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 | 201.04M | 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
Negative
2.28
Price Trends
2.92
Negative
2.86
Negative
3.19
Negative
Market Momentum
-0.22
Positive
34.85
Neutral
11.76
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 2.28 is below the 20-day moving average (MA) of 2.89, below the 50-day MA of 2.92, and below the 200-day MA of 3.19, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 34.85 is Neutral, neither overbought nor oversold. The STOCH value of 11.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLOV.
Clover Health Investments Risk Analysis
Clover Health Investments disclosed 66 risk factors in its most recent earnings report. Clover Health Investments reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clover Health Investments Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $27.31B | 21.28 | 7.15% | 1.21% | 9.87% | -5.58% | |
61 Neutral | $17.94B | ― | -21.93% | ― | 14.92% | -286.72% | |
61 Neutral | $7.28B | 8.77 | 19.71% | ― | 13.71% | -18.02% | |
57 Neutral | $3.34B | ― | -15.06% | ― | 47.39% | 85.35% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.18B | ― | -16.90% | ― | 15.23% | 38.79% | |
45 Neutral | $3.57B | -11.99 | -22.32% | ― | 37.38% | -912.18% |
* Healthcare Sector Average
CLOV
Clover Health Investments
2.28
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Clover Health Investments Corporate Events
Executive/Board ChangesShareholder Meetings
Clover Health Announces Board Leadership Change
Neutral
Apr 22, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.