Meme stock Clover Health Investments, Corp. (NASDAQ:CLOV) reported solid third-quarter Fiscal 2022 results. Clover’s revenue of $856.82 million handily beat the consensus of $799.46 million and more than doubled the Q3FY21 figure. On the other hand, Clover’s diluted loss doubled to $0.16 per share but came in much better than the consensus loss of $0.22 per share. Following the news, CLOV stock rose 6.6% in after-hours trading yesterday.
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Clover Health is a physician enablement company committed to improving health equity for seniors. Year-to-date, CLOV stock, one of the favorites of meme stock traders, has lost 66.4%.
Notably, Clover’s Q3 insurance memberships jumped nearly 31% year-over-year to 88,136, and non-insurance memberships advanced 169% to 166,432. Also, the Insurance Medical Care Ratio (MCR) improved significantly to 86.3% in the quarter, thanks to favorable underlying operational trends.
For the full year of Fiscal 2022, total revenue is projected to be between $3.2 billion and $3.4 billion. Clover intends to continue improving both its insurance and non-insurance MCR going forward, with its 2022 insurance MCR expected to be between 93% and 94%.
Is Clover Health Stock a Good Buy?
Currently, on TipRanks, Clover Health stock has a Moderate Sell consensus rating. This is based on two Holds and one Sell rating. Having said that, the average Clover Health Investments price target of $3.17 implies a whopping 133.1% upside potential from current levels.
Clover Health is still fighting legal battles related to supplier payment conflicts and misleading statements about Clover Assistant. Analysts are probably waiting for the dust to settle on these aspects before giving more bullish views on the stock.
