Oscar Health, Inc. (OSCR) ended the recent trading session at $12.85, demonstrating a +0.16% swing from the preceding day's closing price. This change lagged the S&P 500's 1.08% gain on the day. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 1.41%.The the stock of company has fallen by 19.05% in the past month, lagging the Finance sector's loss of 4.3% and the S&P 500's loss of 8.26%.Investors will be eagerly watching for the performance of Oscar Health, Inc. in its u ...

The most recent trading session ended with Oscar Health, Inc. (OSCR) standing at $13.45, reflecting a +1.74% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.64%. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.31%.Coming into today, shares of the company had lost 1.78% in the past month. In that same time, the Finance sector lost 4.63%, while the S&P 500 lost 7.69%.Market participants will be closely fol ...

Group 1 - Hims & Hers (NYSE: HIMS) and Oscar Health (NYSE: OSCR) are identified as companies currently disrupting the US healthcare market [1] - MMMT Wealth, led by Oliver, focuses on investment strategies and stock analysis, primarily through insights gathered from investor calls, presentations, and financial news [1] - The analysis aims to form opinions on stocks with a time horizon of 3-5 years, emphasizing the potential life-changing impact of strategic investments [1] Group 2 - Oliver has 5 years of investing experience and 4 years as a CPA, highlighting his dedication and knowledge in the investment field [1] - The article encourages following Oliver's insights for valuable investment information, reflecting a commitment to thorough research on top businesses [1]

Membership Growth - As of December 31, 2024, Oscar has approximately 1.68 million effectuated members, a significant increase from 1,036,283 members in 2023, representing a growth of 62%[30] - Oscar's membership in Florida grew to 871,881 in 2024, up from 593,867 in 2023, marking a 47% increase[36] - The company has experienced significant member growth since its inception, but there are concerns about maintaining this growth and managing membership effectively[116] Financial Performance - For the year ended December 31, 2024, Oscar earned $9,512.3 million in premiums from the Centers for Medicare & Medicaid Services (CMS) and $799.3 million from members, totaling $10,311.6 million in premium revenue[31] - The company achieved profitability in 2024 on both a consolidated Adjusted EBITDA and net income basis, reflecting successful operational strategies[47] - For the year ended December 31, 2024, the company achieved consolidated net income of $26.1 million and consolidated Adjusted EBITDA of $199.2 million, marking the first profitability since inception in 2012[129] - The company derives nearly all of its revenue from direct policy premiums, which are primarily driven by the number of members covered by its health plans[116] - Approximately 92% of direct policy premiums for the year ended December 31, 2024, were subsidized by advanced premium tax credits (APTCs), including enhanced APTCs under the American Rescue Plan Act (ARPA)[132] Strategic Changes - Oscar exited the Medicare Advantage market before the 2024 plan year and ceased offering small group products as of December 15, 2024, indicating a strategic shift in market focus[30] - The company is focusing on Individual Coverage Health Reimbursement Arrangements (ICHRA) to expand individual insurance offerings beyond traditional ACA markets[48] - The company plans to exit the Medicare Advantage market for the 2024 plan year, which may impact its member base and revenue[110] Technology and Innovation - Oscar's technology platform serves nearly 500,000 client lives on its Campaign Builder platform, enhancing member engagement through predictive analytics[27] - The company is investing in AI technologies to enhance operational efficiencies and member personalization across its technology stack[45] - The company is investing in technology development, including artificial intelligence and machine learning, to enhance its operations and member engagement[129] Regulatory Environment - The company operates in a highly regulated environment, with approximately 97% of revenue derived from ACA-regulated health plans, making it vulnerable to changes in ACA regulations[131] - The ACA mandates a minimum Medical Loss Ratio (MLR) of 80% for the individual market, with some states like New York requiring an 82% MLR[83] - The company is subject to statutory risk-based capital (RBC) requirements, with expectations to meet or exceed all applicable mandatory RBC requirements as of December 31, 2024[77] - The company’s operations are subject to comprehensive federal, state, and local laws and regulations, which can vary significantly and impose additional burdens and costs[72] Customer Satisfaction - The net promoter score for Oscar reached 66 in Q4 2024, significantly higher than the industry average, indicating strong customer satisfaction[44] Workforce and Culture - Oscar employs approximately 2,400 full-time employees as of December 31, 2024, emphasizing a diverse workforce aligned with its mission[50] - The company aims to enhance transparency and systematic approaches in human capital frameworks, with approximately nine Employee Resource Groups (ERGs) established in 2024[56] Market Competition - The company competes in a highly competitive environment influenced by ongoing changes, including business consolidations and technological advances[58] - The majority of membership is acquired through brokers, with an increase in broker-acquired business in 2024 compared to 2023, reflecting a macro trend in the Health Insurance Marketplace[63] Risks and Challenges - The company faces challenges in accurately estimating incurred medical expenses, which could negatively affect its financial position and cash flows[120] - The company may incur significant expenses prior to generating revenue when entering new markets or launching new health plans[108] - The company is subject to extensive fraud, waste, and abuse laws, which may require remedial measures and could adversely affect its business[97] - The company faces potential operational costs and financial impacts due to misinterpretation or misapplication of new laws and regulations, which could also affect its ability to service existing +Oscar platform arrangements[143] Compliance and Security - The company maintains a HIPAA compliance program to adapt to new privacy and security regulations and monitor compliance[89] - The company has established security measures to protect its information systems from breaches and malicious activity, including encryption techniques for data[70] - The company must invest significant resources to comply with complex and changing regulations, which may result in increased capital requirements and potential sanctions[199] Future Outlook - The company anticipates that the impact on membership from the unwinding of Medicaid continuous enrollment will not be as significant as the growth experienced in plan year 2024[124] - The future elimination or reduction of enhanced APTCs could make coverage unaffordable for some individuals, negatively impacting overall participation in Health Insurance Marketplaces[132] - Changes in the U.S. health insurance market, including the introduction of a single-payer system, could materially harm the company's business and operating results[144]

Core Insights - Michael Burry, known for predicting the 2008 subprime mortgage crisis, achieved a 74.24% return on his stock portfolio in 2024, significantly outperforming the S&P 500 [1] Company Overview - Oscar Health, Inc. operates a direct-to-consumer digital platform for health insurance and has recently become profitable in Q1 2024 after struggling since its IPO in early 2021 [3][9] Stock Performance - Oscar Health stock (NYSE: OSCR) closed at $15.85 on February 18, up from $13.46, marking a 17.75% rally, which extended to a 23.84% increase by February 19, bringing year-to-date returns to 24.03% [4][5] Investment Activity - The surge in Oscar Health's stock price is attributed to investors buying at bargain prices after the stock hit a 12-month low of $13.06 on February 13 [5] - Following a Q4 earnings call on February 4, Oscar Health reported a double miss on revenues and earnings per share, leading to an attractive valuation for the stock [5][6] Valuation Metrics - Despite the recent surge, Oscar Health's forward price to earnings (PE) ratio stands at 24.03, indicating a potentially attractive investment opportunity [6] Burry's Holdings - Michael Burry holds 200,000 shares of OSCR, representing approximately 3.5% of his portfolio, with potential gains or losses depending on the acquisition price during Q4 [9]

Core Viewpoint - DJS Law Group is investigating claims against Oscar Health, Inc. for potential violations of securities laws following a disappointing earnings report that led to a significant drop in share price [1][2]. Investigation Details - The investigation is centered on whether Oscar Health made misleading statements or failed to disclose critical information to investors [2]. - Oscar Health reported a loss of $0.62 per share for the fourth quarter, which was greater than expected, contributing to a sharp decline in its stock price [2]. DJS Law Group's Focus - DJS Law Group aims to enhance investor returns through balanced counseling and aggressive advocacy, specializing in securities class actions and corporate governance litigation [3]. - The firm represents some of the largest hedge funds and alternative asset managers, emphasizing the value of litigation claims as significant assets [3].

Core Insights - The U.S. healthcare sector is experiencing rapid digital transformation, driven by regulatory changes, consumer demand, and technological advancements, particularly accelerated by the pandemic [1] - Oscar Health reported strong financial results for Q4 2024 and the full year, emphasizing its alignment with market trends towards tech-enabled healthcare experiences [2][3] Financial Performance - Oscar Health achieved total revenue of $9.2 billion for the fiscal year 2024, a 56.5% increase from the previous year, and reported a profit of $25 million despite a loss of $153.5 million in Q4 [3] - The company experienced significant membership growth, reaching approximately 1.7 million members by the end of 2024, up from 1 million at the end of 2023, primarily in the Individual and Small Group segments [6] Strategic Focus - Oscar Health's strategy centers on leveraging technology to enhance member experiences and streamline operations, utilizing a full-stack technology platform to provide superior engagement and clinical care [5] - The company has introduced a new performance metric, Earnings from Operations, and anticipates total revenue between $10 billion and $10.2 billion for 2025, with an MLR between 80.5% and 81.5% [8] Market Position - Oscar Health differentiates itself in the crowded insurance market through a tech-driven approach, focusing on mobile engagement, telehealth integration, and AI-powered decision-making [9] - The healthcare consumer is increasingly savvy, seeking providers that offer solid healthcare experiences and transparent cost management [10] Consumer Engagement - Oscar operates on a direct-to-consumer model with an emphasis on user-friendly technology, offering a range of digital health services through its app [11] - A report indicated that two-thirds of consumers use patient portals, with significant interest among non-users, highlighting the demand for digital health solutions [11]

Core Insights - Oscar Health, Inc. reported a quarterly loss of $0.62 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.58, but an improvement from a loss of $0.66 per share a year ago [1] - The company posted revenues of $2.39 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.79%, but showing significant growth from $1.43 billion year-over-year [2] - Oscar Health shares have increased approximately 24.6% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $2.8 billion, and for the current fiscal year, it is $0.77 on revenues of $11.65 billion [7] - The estimate revisions trend for Oscar Health is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Multi line industry, to which Oscar Health belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total Revenue for 2024 was $9.2 billion, a 56.5% increase year-over-year, driven by membership growth and strong retention [3]. - Adjusted EBITDA for 2024 was $199.2 million, an improvement of $244.5 million year-over-year [5]. - Net income attributable to Oscar for 2024 was $25.4 million, a $296.2 million improvement year-over-year [5]. - Net income for the year ended December 31, 2024, was $26,121, a turnaround from a net loss of $270,594 in 2023 [31]. - Adjusted EBITDA for the year ended December 31, 2024, was $199,234 thousand, a significant improvement from a loss of $45,238 thousand in 2023 [44]. Revenue Projections - For 2025, the Company anticipates Total Revenue of $11.2 billion to $11.3 billion [6]. - Earnings from Operations for 2025 are expected to be between $225 million and $275 million [6]. Membership Growth - As of December 31, 2024, total membership reached 1,676,970, up from 1,036,283 in 2023 [10]. Medical Loss Ratio - The Medical Loss Ratio for 2024 was 81.7%, a 10 basis points increase year-over-year [4]. - The Medical Loss Ratio for 2025 is expected to be between 80.7% and 81.7% [6]. - Medical Loss Ratio for Q4 2024 was 88.1%, compared to 86.4% in Q4 2023, indicating an increase in medical expenses relative to premiums [36]. Operating Expenses - Operating expenses for the year ended December 31, 2024, totaled $9,120,299, a significant increase from $6,098,484 in 2023 [26]. - SG&A expenses for the year ended December 31, 2024, were $1,755,565, compared to $1,425,766 in 2023, reflecting increased operational costs [26]. - Selling, general and administrative expenses for the year ended December 31, 2024, were $1,755,565 thousand, compared to $1,425,766 thousand in 2023, indicating an increase of approximately 23% [47]. Assets and Liabilities - Total assets increased to $4,840,496 as of December 31, 2024, compared to $3,601,480 in 2023 [28]. - Total liabilities rose to $3,824,071 in 2024, up from $2,795,363 in 2023 [28]. Premium Revenue - Premium revenue for the year ended December 31, 2024, was $8,971,259, up 57.5% from $5,686,069 in 2023 [26]. - Direct policy premiums for the year ended December 31, 2024, increased to $10,292,125 thousand, up from $6,418,872 thousand in 2023, representing a growth of approximately 60% [47]. Claims and Medical Expenses - Medical expenses for the year ended December 31, 2024, totaled $7,332,589 thousand, compared to $4,642,024 thousand in 2023, reflecting a year-over-year increase of about 58% [47]. - The company recorded direct claims incurred of $7,278,267 thousand for the year ended December 31, 2024, compared to $4,459,702 thousand in 2023, marking an increase of approximately 63% [47]. Cash and Shareholder Information - Cash and cash equivalents as of December 31, 2024, were $1,527,186, down from $1,870,315 in 2023 [28]. - Weighted average common shares outstanding for the year ended December 31, 2024, were 240,386, an increase from 221,655 in 2023 [26]. Other Financial Metrics - Interest expense for the year ended December 31, 2024, was $23,734 thousand, slightly down from $24,603 thousand in 2023 [44]. - Stock-based compensation for the year ended December 31, 2024, was $109,824 thousand, down from $159,683 thousand in 2023, indicating a reduction of about 31% [44]. - The net quota share impact for the year ended December 31, 2024, was a loss of $52,229 thousand, compared to a loss of $34,721 thousand in 2023 [47]. - Reinsurance recoverable as of December 31, 2024, was $291,537 thousand, an increase from $241,194 thousand in 2023 [47].

Stock Performance - Oscar Health Inc ended the recent trading session at $16 28, showing a -0 12% change from the previous day's closing price [1] - The stock underperformed compared to the S&P 500 (0 92% gain), Dow (0 31% gain), and Nasdaq (2 03% gain) on the same day [1] - Over the past month, the company's shares gained 20 03%, outperforming the Finance sector (4 35% gain) and the S&P 500 (0 81% gain) [1] Earnings and Revenue Expectations - The company's upcoming earnings report is scheduled for February 4, 2025 [2] - Analysts expect Oscar Health Inc to post earnings of -$0 58 per share, representing a 12 12% year-over-year growth [2] - Revenue is projected to be $2 46 billion, indicating a 71 91% increase compared to the same quarter of the previous year [2] Analyst Estimates and Stock Performance - Recent changes in analyst estimates often reflect shifts in near-term business trends [3] - Positive revisions in estimates typically indicate analysts' confidence in the company's business performance and profit potential [3] - Adjustments in estimates are directly associated with imminent stock price performance [4] Valuation Metrics - Oscar Health Inc has a Forward P/E ratio of 21 31, which is higher than its industry's Forward P/E of 9 98 [6] - The company's PEG ratio is 0 65, lower than the industry average of 1 09 for Insurance - Multi line stocks [6] Industry Ranking - The Insurance - Multi line industry is part of the Finance sector and has a Zacks Industry Rank of 89, placing it in the top 36% of all industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7] Zacks Rank System - Oscar Health Inc currently has a Zacks Rank of 3 (Hold) [5] - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 ranked stocks delivering an average annual return of +25% since 1988 [5]