Franklin, Tenn.-based Medicare advantage insurer Clover Health Investments Corp.’s (CLOV) total revenues grew 159.9% year-over-year to $432.04 million in the fiscal fourth quarter, ended Dec. 31, 2021. However, its operating loss increased 176.2% year-over-year to $186.79 million, while its net loss increased 48.1% year-over-year to $187.20 million. Furthermore, CLOV’s trailing-12-month gross profit margin and EBITDA margin are currently both negative, versus the 56.24% and 5.83% respective industry averages. Over the past year, the stock has declined 80.2% in price to close yesterday’s trading session at $2.01. Given its weak financials, we think the stock could witness further declines in the near term.
However, the healthcare-plans industry has performed well throughout the pandemic. With rising health awareness and increasing chronic diseases, the industry should witness steady growth. The global health insurance market is expected to grow at a 5.5% CAGR to $3,038.6 billion in 2028.
