Clover Health Stock Declines Due to Medicare Proposal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Benzinga
- Medicare Payment Rate Impact: The Trump administration's CMS proposed nearly flat MA payment rates for 2027, with a mere 0.09% year-over-year increase, significantly below Wall Street's 4%-6% growth expectations, which could lead to slower revenue growth per member for Clover, forcing the company to either absorb higher medical costs or cut supplemental benefits, thereby impacting its competitiveness in the market.
- Pressure from UnitedHealth Earnings: UnitedHealth Group reported a sharp decline in adjusted EPS and a medical care ratio near 89%, with 2026 sales guidance falling short of expectations, indicating rising utilization and thinner margins in the MA sector, which raises concerns about Clover's profitability as investors perceive it as having less capacity to absorb costs compared to larger players.
- Bearish Stock Trend: Clover's stock is currently trading 7.2% below its 20-day simple moving average and 14.4% below its 100-day SMA, with a 48.70% decrease over the past 12 months, reflecting ongoing challenges, while the RSI is neutral and the MACD indicates mixed momentum for the stock.
- Upcoming Earnings Report Outlook: Investors are looking forward to the earnings report scheduled for February 26, with an EPS estimate of a 7-cent loss and revenue projected at $469.23 million, up from $336.96 million year-over-year, while analysts maintain a hold rating with an average price target of $6.02, indicating cautious sentiment regarding Clover's future performance.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on CLOV
Wall Street analysts forecast CLOV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLOV is 3.35 USD with a low forecast of 3.00 USD and a high forecast of 3.70 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 2.310
Low
3.00
Averages
3.35
High
3.70
Current: 2.310
Low
3.00
Averages
3.35
High
3.70
About CLOV
Clover Health Investments, Corp. is a physician enablement technology company. The Company is focused on bringing access to healthcare to everyone on Medicare. This includes a health equity-based focus on seniors, who have historically lacked access to affordable healthcare. Its software platform, Clover Assistant, is designed to aggregate patient data from across the healthcare ecosystem to support clinical decision-making and improve health outcomes through the early identification and management of chronic disease. The Company, through its Insurance segment, provides Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO) plans to Medicare Advantage (MA) members in several states, with a differentiated focus on its flagship wide-network, high-choice PPO plans. For healthcare providers outside its MA plan, it focuses on extending the benefits of its data-driven technology platform to a wider audience via its subsidiary, Counterpart Health, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Clover Health Stock Declines Due to Medicare Proposal
- Medicare Payment Rate Impact: The Trump administration's CMS proposed nearly flat MA payment rates for 2027, with a mere 0.09% year-over-year increase, significantly below Wall Street's 4%-6% growth expectations, which could lead to slower revenue growth per member for Clover, forcing the company to either absorb higher medical costs or cut supplemental benefits, thereby impacting its competitiveness in the market.
- Pressure from UnitedHealth Earnings: UnitedHealth Group reported a sharp decline in adjusted EPS and a medical care ratio near 89%, with 2026 sales guidance falling short of expectations, indicating rising utilization and thinner margins in the MA sector, which raises concerns about Clover's profitability as investors perceive it as having less capacity to absorb costs compared to larger players.
- Bearish Stock Trend: Clover's stock is currently trading 7.2% below its 20-day simple moving average and 14.4% below its 100-day SMA, with a 48.70% decrease over the past 12 months, reflecting ongoing challenges, while the RSI is neutral and the MACD indicates mixed momentum for the stock.
- Upcoming Earnings Report Outlook: Investors are looking forward to the earnings report scheduled for February 26, with an EPS estimate of a 7-cent loss and revenue projected at $469.23 million, up from $336.96 million year-over-year, while analysts maintain a hold rating with an average price target of $6.02, indicating cautious sentiment regarding Clover's future performance.
Continue Reading
U.S. Retail Sales Rise 0.6% MoM, Tech Stocks Decline
- Retail Sales Surge: U.S. retail sales increased by 0.6% month-over-month in November, marking the largest surge since July, indicating a potential rebound in consumer spending that could positively impact economic recovery.
- Tech Stock Decline: Information technology stocks fell by 1.3% on Wednesday, reflecting market concerns over the tech sector, which may affect investor confidence and lead to capital outflows.
- High-Risk Stock Surge: High Roller Technologies, Inc. (NYSE:ROLR) shares skyrocketed 289% to $13.64 after announcing a binding Letter of Intent with Crypto.com to launch an event-based prediction markets product in the U.S., demonstrating strong market demand for innovative offerings.
- IPO Impact: Briacell Therapeutics Corp. (NASDAQ:BCTX) priced its $30 million public offering at $5.59 per unit, leading to a 53% drop in its stock price to $5.09, reflecting market sensitivity to financing activities.
Continue Reading