Clover Health Share Price Forecast Ahead of First Quarter Results

Clover Health (NASDAQ: CLOV) stock price is near its lowest level on record ahead of the company’s upcoming quarterly results. The shares are trading at $2.79, which is slightly above the all-time low of $2.21, bringing its total market capitalization to over $1.2 billion. At its peak, the shares were trading at $28.81.

Clover Revenue Snapshot

Clover Health is a leading company in Medicare Advantage insurance plans for thousands of people in the United States. The company went public through a SPAC merger which was sponsored by Chamath Palihapitiya.

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At its peak, Clover Health became one of the most popular meme stocks in the world. As a result, the company’s shares hit an all-time high. Like other meme stocks like AMC, Blackberry, and GameStop, it has fallen sharply over the past few months. The sell-off accelerated as investors react to the hawkish Federal Reserve.

Clover’s stock price will react to the company’s upcoming quarterly results which are scheduled for Monday this week. Economists polled by Reuters expect the company’s revenue to hit $787.41 million in the first quarter.

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If analysts are accurate, that revenue will be significantly larger than the previous quarter’s $431 million. Judging by past earnings, it is likely that the company will report stronger results than expected.

Clover is expected to post a GAAP loss of 29 cents, which will also be better than the previous 44 cents. Consequently, analysts will be watching the stock price as investors focus on Biden’s plans for Medicare.

Clover Health Stock Price Forecast

Clover Health

The four-hour chart shows that CLOV stock price has been trending deep down over the past few days. The stock managed to break below the 25- and 50-day moving averages, while the Relative Strength Index (RSI) moved slightly below the neutral level.

The stock has also formed what looks like a descending wedge pattern. Therefore, the stock is likely to experience an upside break since the bad news has already been priced in.

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Karen J. Nelson