Clover Health Stock Tumbles Despite Solid Earnings, Analyst Says Focus Remains on Profits By


© Reuters. Clover Health (CLOV) Stock Tumbles Despite Solid Earnings, Analyst Says Focus Remains on Profits

By Senad Karaahmetovic

Shares of Clover Health (NASDAQ:) are down over 11% in pre-open trading on Tuesday after the company reported Q2 results.

CLOV a net loss of $104.2 million on revenue of $846.7 million, better than the $816.7 million consensus. An adjusted EBITDA loss came in at $87.5 million, worse than the estimated loss of $85.1 million.

The company reiterated its full-year forecast for revenue and Medicare Advantage membership

A Credit Suisse analyst reiterated an Underperform rating and cut the price target to $3 per share. The analyst sees the risk that CLOV will “need funding at some point in the next year and missteps in benefit design or further MLR issues could exacerbate this.”

“While we are incrementally positive on the overall steps the company is taking to reign in costs and reduce cash burn, this will take some time to prove out,” he added.

A Citi analyst hiked the price target to $3.50 from $3.00 but reiterated a Neutral rating.

“While trends remain encouraging from a membership perspective, we believe all eyes continue to be on profitability generation. In that light, with the EBITDA miss in the quarter, uncertainty on back-half 2022 trends even in light of YTD performance, and a number of unknowns in terms of how CLOV will approach 2023 for both MA and DCE, find it difficult to have greater conviction in the name at this time,” he wrote in a client note.

Leave a Comment

Leading the way

Let's build a better world together

Project planning
Design expertise
Great qualifications

Nullam vestibulum finibus sapien, id consequat mauris tempus auctor.


90 Newport St., Natick, MA 01760

83 Taylor Street, Kings Mountain, NC 28086

22 Birch Hill St., Villa Rica, GA 30180

Support requests

Nullam scelerisque leo felis, quis congue mauris tristique in. Suspendisse pulvinar, felis eu facilisis mattis, turpis odio luctus nisi, et ultrices velit enim quis lacus.

Request a quote

[Insert your contact form here]


Vivamus vehicula dictum elit at bibendum. Etiam finibus eros ut urna auctor ullamcorper. Sed at erat eget nisl rutrum ultrices sed eu ex.


Sign up to receive the latest news and trends from our company.

More questions? Get in touch