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Clover Health Investments
(NASDAQ:CLOV)
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Rating:74Outperform
Price Target:
$5.00
▲(21.07% Upside)
Action:Upgraded
Date:09/24/26
The score is driven primarily by improving financial momentum (near break-even TTM, strong TTM free cash flow, and a debt-light balance sheet) and a notably positive earnings-call update with raised 2026 guidance and improving profitability/operating leverage. Technicals add support with an uptrend across moving averages and neutral momentum. Offsetting factors are weak earnings-based valuation signals (negative P/E), plus residual execution and headline risks (seasonality, early-stage cohort mix, outpatient trend uncertainty, CMS appeal risk, and the cybersecurity incident).
Positive Factors
Membership and revenue growth
Rapid membership expansion and strong revenue growth indicate increasing scale in Clover’s Medicare Advantage platform. A larger member base can improve administrative efficiency, deepen provider-market presence, and create more opportunity for the company’s clinical model to generate better economics as cohorts mature.
Negative Factors
Profitability not yet consistently proven
Despite major improvement, Clover has not yet demonstrated sustained full-year profitability. Continued sensitivity to medical costs, pricing, and operating expenses means earnings could remain uneven, and another period of losses would weaken confidence that recent improvements represent a durable earnings base.
Read all positive and negative factors
Positive Factors
Negative Factors
Membership and revenue growth
Rapid membership expansion and strong revenue growth indicate increasing scale in Clover’s Medicare Advantage platform. A larger member base can improve administrative efficiency, deepen provider-market presence, and create more opportunity for the company’s clinical model to generate better economics as cohorts mature.
Read all positive factors
Clover Health Investments Key Performance Indicators (KPIs)
Any
Revenue by Segment
Separates revenue into lines like Medicare Advantage premiums versus platform or services revenue. Identifies which activities drive top-line growth and which deliver higher margins. A shift toward service or platform revenue can improve profitability and diversify risk, whereas dependence on premium revenue makes results more sensitive to medical costs and regulatory changes.
Separates revenue into lines like Medicare Advantage premiums versus platform or services revenue. Identifies which activities drive top-line growth and which deliver higher margins. A shift toward service or platform revenue can improve profitability and diversify risk, whereas dependence on premium revenue makes results more sensitive to medical costs and regulatory changes.
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The Fly
The FlyClover Health Investments (CLOV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.29B
Dividend Yield1.23%
Average Volume (3M)3.75M
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue Growth54.04%
EPS Growth57.31%
CountryUS
Employees724
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Plans
Share Statistics
EPS (TTM)-0.04
Shares Outstanding435,441,350
10 Day Avg. Volume3,669,618
30 Day Avg. Volume3,754,567
Financial Highlights & Ratios
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<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$5.50Price Target Upside33.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.06
Revenue Forecast (FY)$2.95B
Clover Health Investments Business Overview & Revenue Model
Company Description
Clover Health Investments, Corp. is a U.S.-based firm specializing in Medicare Advantage insurance. The company leverages its proprietary software platform, the Clover Assistant, to provide both Preferred Provider Organization (PPO) and Health Mai...
How the Company Makes Money
Clover Health primarily makes money through its Medicare Advantage insurance operations. Its core revenue stream is premium revenue received for providing Medicare Advantage coverage, which is largely funded by payments from the U.S. government (C...
Clover Health Investments Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line and membership growth (48% MA growth, +56% revenue YoY in Q2), improving profitability (Q2 adjusted EBITDA $41M, GAAP net income $28M), expanded operating leverage, improved cash balance, and a favorable 4.5-star recalculation — all supported by visible cohort maturation dynamics (~$70 PMPM improvement year-over-year between vintages). Manageable lowlights include seasonal Q4 headwinds, a large share of early-stage members that will pressure near-term margins until cohorts mature, ongoing CMS appeal litigation risk, and elevated outpatient trends that require monitoring. Overall, the positive operational and financial momentum, upgraded guidance, and stronger star positioning outweigh the remaining risks and seasonal uncertainties.Positive Updates
Strong Membership Growth
Average Medicare Advantage membership grew 48% year-over-year to ~157,000 members in Q2 2026; company now expects average MA membership of 156,000–158,000 for full year 2026.
Negative Updates
Concentration of Early-Stage Members
A significant portion of membership is still in the first two years of the Clover life cycle (2025 cohort ~21%, 2026 cohort ~28%), creating expected near-term margin pressure until cohorts mature and realize improved economics.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Membership Growth
Average Medicare Advantage membership grew 48% year-over-year to ~157,000 members in Q2 2026; company now expects average MA membership of 156,000–158,000 for full year 2026.
Read all positive updates
Company Guidance
Clover raised full‑year 2026 guidance, now targeting average Medicare Advantage membership of 156,000–158,000, total revenue of $2.92–3.00 billion, consolidated gross profit of $525–555 million, adjusted EBITDA of $70–85 million, and GAAP net income of $20–35 million. The raise was supported by strong H1 and Q2 results — average MA membership of 157,000 in Q2 (48% YoY growth), Q2 revenue $743 million (+56% YoY), Q2 consolidated gross profit $153 million (+54% YoY), H1 revenue ~$1.5 billion (up >$550 million YoY), H1 adjusted EBITDA $81 million and H1 GAAP net income $55 million — plus $443 million of cash and investments, $133 million of operating cash flow YTD, and no debt. Management highlighted improving unit economics from cohort maturation (historically ~$70 PMPM gross profit improvement year‑one to year‑two), two‑thirds of members covered by Clover Assistant (low‑60s for the 2025/2026 cohorts), cohort mix (~21% from 2025, ~28% from 2026), SG&A of $112 million in Q2 (15% of revenue, ~220 bps improvement YoY), and expected seasonality with stronger gross profit in Q3, positive adjusted EBITDA in Q3, and a typical seasonal loss in Q4.Clover Health Investments Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
80
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.48B | 1.92B | 1.37B | 1.26B | 1.10B | 1.47B |
| Gross Profit | 459.93M | 355.88M | 364.80M | 255.95M | 103.48M | -79.18M |
| EBITDA | -16.46M | -83.86M | -44.94M | -207.63M | -252.03M | -569.60M |
| Net Income | -18.36M | -85.55M | -43.01M | -213.36M | -339.57M | -587.76M |
Balance Sheet | ||||||
| Total Assets | 720.33M | 541.01M | 580.74M | 570.67M | 808.62M | 950.80M |
| Cash, Cash Equivalents and Short-Term Investments | 201.32M | 95.35M | 221.54M | 242.69M | 334.76M | 615.25M |
| Total Debt | 0.00 | 0.00 | 0.00 | 4.66M | 5.86M | 27.83M |
| Total Liabilities | 344.07M | 232.31M | 239.60M | 284.28M | 451.73M | 411.49M |
| Stockholders Equity | 376.26M | 308.70M | 341.14M | 286.39M | 356.89M | 535.41M |
Cash Flow | ||||||
| Free Cash Flow | 74.21M | -68.98M | 33.29M | -116.45M | -208.39M | -283.05M |
| Operating Cash Flow | 77.03M | -66.93M | 34.84M | -115.87M | -203.93M | -282.33M |
| Investing Cash Flow | -45.52M | 4.08M | 565.00K | 140.01M | 95.13M | -435.45M |
| Financing Cash Flow | -21.32M | -53.38M | -17.36M | -33.86M | -4.96M | 925.39M |
Clover Health Investments Technical Analysis
Neutral
4.13
Price Trends
4.39
Negative
4.39
Negative
3.32
Positive
Market Momentum
-0.02
Positive
41.79
Neutral
17.16
Positive
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 4.13 is below the 20-day moving average (MA) of 4.50, below the 50-day MA of 4.39, and above the 200-day MA of 3.32, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 17.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLOV.
Clover Health Investments Risk Analysis
Clover Health Investments disclosed 67 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.29B | -104.25 | -5.38% | 1.23% | 54.04% | 57.31% | |
70 Outperform | $329.49B | 23.48 | 14.63% | 2.48% | 6.46% | -32.89% | |
70 Outperform | $84.32B | 16.93 | 11.24% | 1.80% | 6.27% | -4.37% | |
65 Neutral | $45.82B | 35.49 | 6.91% | 0.93% | 18.33% | -18.53% | |
62 Neutral | $30.69B | -5.89 | -24.03% | ― | 13.89% | -356.11% | |
60 Neutral | $1.69B | 39.05 | 20.02% | ― | 37.21% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CLOV
Clover Health Investments
4.23
1.64
63.32%
CNC
Centene
60.99
22.29
57.60%
HUM
Humana
379.68
99.02
35.28%
UNH
UnitedHealth
365.20
14.34
4.09%
ELV
Elevance Health
381.67
38.00
11.06%
ALHC
Alignment Healthcare
7.74
-8.88
-53.43%
Clover Health Investments Corporate Events
Business Operations and StrategyExecutive/Board Changes
Clover Health Adds Policy and Clinical Experts to Board
Positive
Sep 24, 2026
On September 22, 2026, Clover Health Investments appointed former U.S. Senator Robert G. Torricelli and MedPAC Commissioner Dr. Brian J. Miller to its Board of Directors, filling two previously disclosed vacancies and expanding the Board to nine m...
Business Operations and StrategyFinancial Disclosures
Clover Health Highlights Depth-Focused Strategy and Technology Investments
Positive
Aug 20, 2026
On August 20, 2026, Clover Health released a supplemental QA tied to its second-quarter 2026 earnings, aiming to deepen engagement with shareholders and clarify its operating model and outlook. Management highlighted how its Clover Assistant-drive...
Business Operations and StrategyRegulatory Filings and Compliance
Clover Health Reports Cybersecurity Incident, Enhances Protections
Negative
Jul 17, 2026
On July 4, 2026, Clover Health detected anomalous login activity in certain information systems and triggered its incident response, engaging third-party cybersecurity experts and notifying law enforcement. An investigation found that a threat act...
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.