Clover Health Investments (NASDAQ: CLOV ) is navigating a complex business landscape, showing both promising financial progress and persistent challenges in 2024. Known for its innovative approach to Medicare Advantage plans, the company has upside potential for risk-averse investors looking to investYavuz Akbay is quantitative analyst with over 5 years of experience in interpreting complex financial data, developing complex mathematical models and modeling and forecasting. Utilizes machine learning algorit ...

On November 6th, Clover Health Investments, Corp. (NASDAQ: CLOV ) reported its Q3 earnings , showcasing continued top-line growth and improved bottom-line performance. Despite this, the stock is down 32% since the release of the Q3 earnings report due to missing analysts' estimatesAs a former managing editor at a financial media publication focused on mid and small caps, I am using my experience to present investment opportunities in undervalued companies. My experience, combined with my academic background ...

A downtrend has been apparent in Clover Health Investments, Corp. (CLOV) lately with too much selling pressure. The stock has declined 26.3% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used tech ...

A downtrend has been apparent in Clover Health Investments, Corp. (CLOV) lately with too much selling pressure. The stock has declined 25.8% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technica ...

Business Operations - As of September 30, 2024, Clover Health operates Medicare Advantage plans in five states and 200 counties, serving 81,110 members[150]. - The company launched Counterpart Health, a SaaS solution aimed at extending the benefits of its technology to Medicare Advantage payors and providers, with low startup costs and high-margin business opportunities[154]. - The company exited the ACO REACH program effective January 1, 2024, after determining it was in its best interest to do so[155]. Financial Performance - Premiums earned, gross for 2024 totaled $1,014,502,000, with a PMPM of $1,409, compared to $933,040,000 and a PMPM of $1,252 in 2023[159]. - Adjusted EBITDA for 2024 is $19,263,000, a significant increase from $2,723,000 in 2023, reflecting improved operational efficiency[159]. - Total revenues increased by $24.9 million, or 8.2%, to $330.986 million for the three months ended September 30, 2024, compared to the same period in 2023[180]. - Net loss from continuing operations improved by $24.8 million, or 73.9%, to $(8.8) million for the three months ended September 30, 2024, compared to $(33.6) million for the same period in 2023[179]. Claims and Expenses - Clover Health's net medical claims incurred for 2024 were $251,643,000, with a PMPM of $1,040, compared to $236,533,000 and a PMPM of $966 in 2023[159]. - The medical care ratio, gross for 2024 is reported at 78.1%, slightly improved from 78.6% in 2023, indicating effective cost management[159]. - Clover Health's benefits expense ratio, gross for 2024 is 82.8%, consistent with the previous year's ratio of 83.4%, indicating stable expense management[159]. - Net medical claims incurred increased by $14.0 million, or 6%, to $249.8 million for the three months ended September 30, 2024, compared to the same period in 2023[183]. Income and Cost Management - Other income rose by $3.6 million, or 75%, to $8.4 million for the three months ended September 30, 2024, attributed to a higher interest rate environment[182]. - Salaries and benefits decreased by $5.6 million, or 9%, to $55.0 million for the three months ended September 30, 2024, primarily due to lower share-based compensation costs[184]. - General and administrative expenses decreased by $5.8 million, or 14%, to $35.2 million for the three months ended September 30, 2024, driven by a reduction in professional fees[185]. Cash Flow and Investments - Net cash provided by operating activities from continuing operations was $129.5 million for the nine months ended September 30, 2024, reflecting a net loss of $20.9 million[207]. - Net cash provided by investing activities was $2.0 million for the nine months ended September 30, 2024, primarily due to $156.6 million from the sale and maturity of investment securities[209]. - Total restricted and unrestricted cash, cash equivalents, and investments for all entities were $531.4 million at September 30, 2024, compared to $417.3 million at December 31, 2023[199]. Risk Management - The company is primarily exposed to interest rate risk associated with investments in fixed maturity instruments[222]. - Credit risk is managed by investing in high-quality securities and diversifying holdings[223]. - The company does not have material exposure to commodity risk[222]. Accounting and Financial Measures - Clover Health utilizes non-GAAP measures such as Adjusted EBITDA and Adjusted SG&A to assess performance and future prospects[220]. - Non-GAAP financial measures should be read in conjunction with GAAP financial statements[220]. - Recent accounting pronouncements and their potential impact are discussed in the condensed consolidated financial statements[218].

Clover Health Investments, Corp. (CLOV) delivered a loss per share of 2 cents in the third quarter of 2024, narrower than the year-ago period’s loss of 7 cents per share and the Zacks Consensus Estimate of a loss of 3 cents per share.CLOV’s Revenues in DetailClover Health registered revenues of $330.9 million in the third quarter, up 8.2% year over year. However, the figure missed the Zacks Consensus Estimate by 4.8%.The top line was aided by robust Insurance revenues and Other income.Shares of this company ...

Clover Health Investments, Corp. (CLOV) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced earnings of $0.01, delivering a surprise of 125%.Over the last four quarters, the com ...

Third Quarter 2024 Earnings Conference Call November 6, 2024 LGTMs: Date: | --- | --- | |--------------------------|----------| | | | | Andrew T. ("I" in RAPID) | Input | | | provided | | | 11/4 | Peter K. Legal (Karen / Peter R.) Accounting (#s check) Disclaimer This presentation and the accompanying oral presentation include forward-looking statements, including, without limitation, statements regarding future events and Clover Health Investments, Corp.'s ("Clover Health," "we," "our," or "us") expectatio ...

Financial Data and Key Metrics Changes - The GAAP net loss in continuing operations for Q3 2024 improved significantly by $25 million to a loss of $9 million compared to the same quarter last year [19] - Adjusted EBITDA improved to a profit of $19 million this quarter, compared to $3 million in Q3 2023 [19] - Year-to-date adjusted EBITDA profitability increased by $87 million, delivering $62 million so far this year [20] - Insurance revenue for Q3 2024 was $323 million, representing year-to-year growth of 7% [22] - Year-to-date revenue was $1.14 billion, reflecting a 9% growth year-to-year [23] Business Line Data and Key Metrics Changes - The Insurance Benefits Expense Ratio (BER) improved to 82.8% in Q3 2024, compared to 82.2% in the same period of 2023 [21] - The Medical Care Ratio (MCR) improved to 78% in Q3 2024 from 78.5% last year [21] - The company achieved industry-leading loss ratios driven by strong performance in PMPM revenue and medical expense management [7] Market Data and Key Metrics Changes - The company received upgraded Star Ratings, notably a 4-Star Rating for its flagship PPO for plan year 2025, impacting payment year 2026 [8] - Over 95% of members are in the 4-Star plan, which received the highest score in the country on core HEDIS measures [8] Company Strategy and Development Direction - The company plans to focus on growth while maintaining consolidated profitability through strong management of returning member cohorts [14] - Investments will be made to support membership growth opportunities for 2025 and beyond, leveraging improved Star Ratings and strong performance [27][28] - The company aims to expand its Medicare Advantage plan significantly and profitably within current markets and new geographies [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunity due to competitors struggling with Star Ratings and cost management [13] - The company is positioned well for growth in 2025, supported by strong performance in 2024 [15] - Management highlighted the importance of maintaining a strong balance sheet and operational efficiencies to support future growth [31][34] Other Important Information - The company ended Q3 2024 with cash and investments totaling $531 million [30] - Cash flow from operating activities for Q3 was $50 million, bringing year-to-date cash flow to $130 million [31] - The company plans to increase its full year 2024 adjusted EBITDA guidance to between $55 million and $65 million [33] Q&A Session Summary Question: Insights on AEP for 2025 and impact of STARS rating - Management noted that the 4-Star Rating affects plan year 2025 and positions the company well against competitors [46][48] Question: Details on fourth quarter investments and PPD benefit - Investments will focus on marketing and quality initiatives, with PPD having a smaller impact than in prior quarters [50][51] Question: Impact of IRA on drug costs and bids - Management indicated that they are adjusting bids in response to IRA changes and feel confident about their position in the market [55][57]

Financial Performance - Total revenue for year-to-date 2024 increased by 9% compared to the prior year period, reaching $1.0 billion[1] - GAAP Net Loss from continuing operations improved to $24.8 million year-to-date in 2024, a significant reduction from a loss of $142.2 million in the same period of 2023[2] - Adjusted EBITDA for year-to-date 2024 increased to $62.3 million, compared to a loss of $24.9 million in the year-to-date 2023[2] - The company reported a significant increase in Adjusted EBITDA for Q3 2024, reaching $19.3 million, up 614.8% from $2.7 million in Q3 2023[4] - The company reported a net loss of $9.155 million for Q3 2024, an improvement from a net loss of $41.469 million in Q3 2023[18] - Net loss from continuing operations for the three months ended September 30, 2024, was $(8,785) thousand, compared to $(33,616) thousand for the same period in 2023[22] - Adjusted EBITDA for the three months ended September 30, 2024, was $19,263 thousand, significantly up from $2,723 thousand in the prior year[22] Revenue and Growth - Insurance revenue for Q3 2024 grew by 7% year-over-year to $322.6 million, with year-to-date insurance revenue also up by 9%[2] - Total revenues for Q3 2024 reached $330.986 million, a 8.2% increase from $306.028 million in Q3 2023[17] - Premiums earned, net for Q3 2024 were $322.579 million, compared to $301.230 million in Q3 2023, reflecting a growth of 7.1%[17] Cash and Assets - Total restricted and unrestricted cash, cash equivalents, and investments decreased to $531.4 million, down 20.9% from $672.0 million[4] - Cash and cash equivalents rose significantly to $287.956 million as of September 30, 2024, compared to $116.407 million at the end of 2023[14] - Total current assets as of September 30, 2024, were $432.727 million, slightly up from $427.970 million at the end of 2023[14] - Cash and cash equivalents at the end of the period for discontinued and continuing operations were $287,956 thousand, down from $351,744 thousand at the end of the previous year[21] Liabilities and Equity - Total liabilities increased to $310.847 million as of September 30, 2024, compared to $284.277 million at the end of 2023, marking a rise of 9.3%[15] - Stockholders' equity increased to $342.166 million as of September 30, 2024, up from $286.394 million at the end of 2023[16] Insurance Metrics - Insurance Medical Claims Ratio (MCR) improved to 76% - 77% for full-year 2024 guidance, compared to the previous range of 77% - 79%[5] - Insurance Benefits Expense Ratio (BER) is projected to be between 81% - 82% for full-year 2024, an improvement from the previous guidance of 81% - 83%[5] - Insurance benefits expense ratio for the three months ended September 30, 2024, was 82.8%, slightly improved from 83.3% in the same period last year[24] Cash Flow - Net cash provided by operating activities from continuing operations was $129,539 thousand for the nine months ended September 30, 2024, compared to $79,364 thousand for the same period in 2023[21] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $120,678 thousand, up from $113,424 thousand in the prior year[21] - Net cash used in financing activities for the nine months ended September 30, 2024, was $(11,220) thousand, compared to $(4,244) thousand in the prior year[21] - Purchases of short-term investments for the nine months ended September 30, 2024, totaled $(153,347) thousand, compared to $(142,359) thousand in the same period last year[21] Membership and Market Position - Clover Health's insurance members slightly decreased to 81,110 as of September 30, 2024, from 81,275 a year earlier[6]