Clover Health Investments Corp. (NASDAQ: CLOV): Is Its Value Too High Compared To Others?

Clover Health Investments Corp. (NASDAQ:CLOV) shares, rose in value on Friday, August 05, with the stock price down by -0.51% to the previous day’s close as strong demand from buyers drove the stock to $2.95.

Actively observing the price movement in the recent trading, the stock is buoying the session at $2.97, falling within a range of $2.95 and $3.08. The value of beta (5-year monthly) is 1.76. Referring to stock’s 52-week performance, its high was $11.13, and the low was $1.95. On the whole, CLOV has fluctuated by 20.24% over the past month.

With the market capitalization of Clover Health Investments Corp. currently standing at about $1.34 billion, investors are eagerly awaiting this quarter’s results, scheduled for Aug 08, 2022. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.21, which is expected to increase to -$0.15 for fiscal year -$0.79 and then to about -$0.64 by fiscal year 2023. Data indicates that the EPS growth is expected to be 36.30% in 2023, while the next year’s EPS growth is forecast to be 19.00%.

Analysts have estimated the company’s revenue for the quarter at $814.62 million, with a low estimate of $749.14 million and a high estimate of $864.8 million. According to the average forecast, sales growth in current quarter could jump up 296.60%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2023, the company’s y-o-y revenues would reach $3.31 billion, representing an increase of 124.60% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that CLOV’s technical picture suggests that short-term indicators denote the stock is a Hold on average. However, medium term indicators have put the stock in the category of 50% Sell while long term indicators on average have been pointing out that it is a Hold.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of CLOV currently trading nearly 9.99% and 18.19% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 61.79, while the 7-day volatility ratio is showing 6.07% which for the 30-day chart, stands at 5.49%. Furthermore, Clover Health Investments Corp. (CLOV)’s average true range (ATR) is 0.15. The company’s stock has been forecasted to trade at an average price of $3.58 over the course of the next 52 weeks, with a low of $2.00 and a high of $7.00. Based on these price targets, the low is 32.2% off current price, whereas the price has to move -137.29% to reach the yearly target high. Additionally, analysts’ median price of $3.00 is likely to be welcomed by investors because it represents a decrease of -1.69% from the current levels.

Data on historical trading for Clover Health Investments Corp. (NASDAQ:CLOV) indicates that the trading volumes over the past 10 days have averaged 5.11 million and over the past 3 months, they’ve averaged 8.97 million. According to company’s latest data on outstanding shares, there are 473.03 million shares outstanding.

Nearly 1.80% of Clover Health Investments Corp.’s shares belong to company insiders and institutional investors own 27.10% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 36.26 million shares as on Jul 14, 2022, resulting in a short ratio of 3.53. According to the data, the short interest in Clover Health Investments Corp. (CLOV) stood at 7.66% of shares outstanding as of Jul 14, 2022; the number of short shares registered in Jun 14, 2022 reached 30.3 million. The stock has fallen by -20.16% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the CLOV stock heading into the next quarter.

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