Skip to main content

Market Overview

BofA Downgrades Clover Health After 100% Stock Surge

BofA Downgrades Clover Health After 100% Stock Surge

Clover Health Investments Corp.’s (NASDAQ: CLOV) stock has spiked by around 100% over the past week and is now at a 70% premium to its closest competitor, Alignment Healthcare Inc (NASDAQ: ALHC), according to BofA Securities.

The Clover Health Investments Analyst: Kevin Fischbeck downgraded the rating for Clover Health Investments from Neutral to Underperform, while maintaining the price target at $10.

The Clover Health Investments Thesis: The recent reductions in management’s growth targets for Medicare Advantage (MA) and Direct Contracting (DC) significantly hampers visibility into the company’s prospects, Fischbeck said in the downgrade note.

“With Q4 results, the company cut its MA membership outlook for 2021 citing a slow pivot to the electronic sales channel and drop in in-person broker sales during COVID,” the analyst said.

“Previously, the company appeared confident in its DC membership outlook, but then with Q1 results, the company cut its DC membership outlook,” he added.

“To some degree, we think falling short on membership in a new government program is completely understandable given the number of moving pieces, but doing so the quarter after lowering the MA membership guide leaves us with low visibility into the outlook,” Fischbeck wrote.

CLOV Price Action: Shares of Clover Health Investments had declined by 10.82% to $15.09 at time of publication Thursday.

(Photo by Luis Villasmil on Unsplash)

Latest Ratings for CLOV

Jun 2021B of A SecuritiesDowngradesNeutralUnderperform
May 2021Credit SuisseMaintainsNeutral
May 2021B of A SecuritiesDowngradesBuyNeutral

View More Analyst Ratings for CLOV
View the Latest Analyst Ratings


Related Articles (CLOV)

View Comments and Join the Discussion!

Posted-In: BofA Securities healthcare Kevin FischbeckAnalyst Color Downgrades Health Care Analyst Ratings General Best of Benzinga

Latest Ratings

SPFRLake StreetInitiates Coverage On13.0
SHSPLake StreetDowngrades
RDS/ASociete GeneraleUpgrades
JRSHAegis CapitalMaintains9.0
TSMArgus ResearchInitiates Coverage On150.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at