Clover Health Investments (CLOV) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 5.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• 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: 4,957,449
• 30 Day Avg. Volume: 5,728,365
• PEG Ratio: -0.15
• Price to Book (P/B): 3.94
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -17.62
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 0.48
• Enterprise Value/Ebitda: -11.36
• 1Y Price Target: $3.23
• Price Target Upside: 58.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.02
• Revenue Forecast (FY): $2.74B

• Rating: 50 Neutral
• Price Target: $2.00 ▼(-1.96% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by weak profitability and the 2025 reversal to negative operating/free cash flow, despite a strong net-debt-free balance sheet and solid recent revenue/membership growth. Technicals are also unfavorable with price below key moving averages and negative MACD, while valuation lacks support due to losses and no dividend. The earnings call provides a modest offset via growth and 2026 profitability aspirations, but near-term guidance cuts and medical cost pressure keep risk elevated.

Positive Factors

Membership & Revenue Growth

Sustained high membership growth and revenue expansion reflect successful market penetration in Medicare Advantage. A larger enrolled base increases recurring capitation revenue and provides scale for spreading SG&A and care-management costs, supporting durable margin expansion as cohorts mature.

Balance Sheet Strength

A net-debt-free balance sheet and positive equity give Clover financial flexibility to fund member growth, invest in technology, and absorb short-term cash-flow variability without immediate financing. This reduces refinancing risk and supports long-term strategic investments.

Proprietary Care Technology

An AI-enabled care platform that improves clinical outcomes and can be sold or licensed creates a sustainable competitive edge. Technology that improves retention, quality scores, and cohort economics supports durable unit economics and potential new revenue streams beyond insurance premiums.

Negative Factors

Negative Cash Flow

A reversion to negative operating and free cash flow raises funding and execution risk if sustained. Persistent cash shortfalls can force financing, constrain investments in care platforms, and pressure runway for membership expansion until cohorts mature and realize expected profitability.

New Member Profitability

Loss-making new members mean growth can be dilutive to near-term margins and cash flow. If onboarding economics do not improve via pricing, network design, or utilization control, accelerated member growth may postpone sustainable profitability and amplify capital requirements.

Sub-Target Star Ratings

Star Ratings materially affect CMS payments, enrollment attractiveness, and negotiations. Persistently sub-4-star status limits quality bonus revenue and competitive positioning versus higher-rated plans, constraining durable margin upside and growth in higher-value markets.

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

Revenue growth is solid and losses have narrowed versus 2021–2022, and the balance sheet is a strength with no debt and positive equity. However, the company remains unprofitable (negative net/EBITDA margins) and 2025 operating and free cash flow turned negative again, raising funding and execution risk.

Income Statement

Revenue growth has been positive in recent years (2023: ~15%, 2024: ~9%, 2025: ~8.5%), and profitability has improved materially versus the large losses in 2021–2022. However, the company remains unprofitable: 2025 net margin is still negative (~-4.4%) with negative EBITDA margin (~-4.4%). Gross margin also shows a major discontinuity (2025 gross margin >100%), which suggests data volatility/one-offs and reduces confidence in the quality and sustainability of reported profitability.

Balance Sheet

Leverage appears very conservative, with total debt at $0 in 2024 and 2025 (and low debt in earlier years), providing financial flexibility. Equity remains positive (~$309M in 2025), but it has trended down from 2024, and returns on equity are still meaningfully negative due to ongoing losses (2025 return on equity ~-28%). Overall, the balance sheet is a relative strength, though continued losses could pressure equity over time.

Cash Flow

Cash generation weakened sharply in 2025: operating cash flow turned negative (about -$67M) and free cash flow was also negative (about -$69M) after being positive in 2024. Free cash flow deterioration (2025 growth ~-20%) raises funding risk if negative cash flow persists, even though prior years show periods where cash outflows tracked accounting losses closely.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.92B	1.37B	1.26B	1.10B	1.47B
Gross Profit	1.99B	364.80M	255.95M	103.48M	-79.18M
EBITDA	-83.86M	-44.94M	-207.63M	-252.03M	-569.60M
Net Income	-85.55M	-43.01M	-213.36M	-339.57M	-587.76M
Balance Sheet
Total Assets	541.01M	580.74M	570.67M	808.62M	950.80M
Cash, Cash Equivalents and Short-Term Investments	95.35M	221.54M	242.69M	334.76M	615.25M
Total Debt	0.00	0.00	4.66M	5.86M	27.83M
Total Liabilities	232.31M	239.60M	284.28M	451.73M	411.49M
Stockholders Equity	308.70M	341.14M	286.39M	356.89M	535.41M
Cash Flow
Free Cash Flow	-68.98M	33.29M	-116.45M	-208.39M	-283.05M
Operating Cash Flow	-66.93M	34.84M	-115.87M	-203.93M	-282.33M
Investing Cash Flow	4.08M	565.00K	140.01M	95.13M	-435.45M
Financing Cash Flow	-53.38M	-17.36M	-33.86M	-4.96M	925.39M

Clover Health Investments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.04
• 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 Negative. The current price of 2.04 is below the 20-day moving average (MA) of 2.08, below the 50-day MA of 2.34, and below the 200-day MA of 2.74, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 57.32 is Neutral, 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
OSCR	61 Neutral	$4.16B	-7.98	-44.51%	―	37.38%	-912.18%
ALHC	60 Neutral	$4.01B	-2,135.87	-0.52%	―	47.39%	85.35%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CNC	51 Neutral	$21.93B	-3.27	-28.79%	―	14.92%	-286.72%
CLOV	50 Neutral	$1.05B	-12.27	-26.33%	―	15.23%	38.79%
MOH	49 Neutral	$7.85B	17.82	11.02%	―	13.71%	-18.02%
HUM	47 Neutral	$22.59B	19.38	6.98%	1.38%	9.87%	-5.58%

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.