Normally, a change in the C-suite isn’t enough to bring about a massive change in a stock’s price. However, today, health insurance company Oscar Health (NYSE:OSCR) blasted up over 67% in Tuesday afternoon’s trading following the announcement of a new CEO.
Oscar Health tapped former chairman and CEO of Aetna Mark Bertolini to take over the top slot and also join Oscar Health’s board of directors. Meanwhile, co-founder and current CEO Mario Schlosser will instead become “president of technology” and report directly to Bertolini.
So what does this mean for Oscar Health? Jonathan Yong, an analyst with Credit Suisse, noted that it’s not going to do much for the stock either way, particularly in the short term. However, bringing in “a seasoned managed care executive” can prove valuable and give Oscar Health solid guidance toward its future.
Oscar Health management also confirmed its earlier forecasts for the full-year 2023. This isn’t the first time Oscar Health has retooled its C-suite, either. About two weeks ago, it brought in a new Chief Medical Officer, Dr. Sean Martin. Plus, it continued on with an agreement between itself and CVS Caremark that should help with revenue as well.
Investors loved the move today, and they found themselves in agreement with hedge funds. Currently, hedge funds’ confidence in Oscar Health is considered Very Positive. Plus, these funds increased their holdings of Oscar Health by 3.4 million shares last quarter. That’s the first time such a raise has been seen in the last three quarters.
