Clover Health stock price forecast ahead of Q1 earnings


Crispus Nyaga

May 8, 2022

Clover Health stock price has been in a strong bearish trend.

The stock has crashed by more than 90% from its all-time high.

Clover will publish its quarterly results on Monday.

The Clover Health (NASDAQ: CLOV) stock price is hovering 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 cap to more than $1.2 billion. At its peak, the shares were trading at $28.81.

Clover earnings preview

Clover Health is a leading company in the Medicare Advantage insurance plans to thousands of people in the United States. The firm went public through a SPAC merger that 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 firm’s stock moved to an all-time high. Like other meme stocks like AMC, Blackberry, and GameStop, it has declined sharply in the past few months. The sell-off has accelerated as investors react to the hawkish Federal Reserve.

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

Read more about how to buy Clover Health shares.

If analysts are accurate, this revenue will be significantly bigger than the previous quarter’s $431 million. Judging by the previous earnings, there is a likelihood that the company will publish stronger results than expected. 

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

Clover Health stock price forecast

The four-hour chart shows that the CLOV stock price has been in a deep downward trend in the past few days. The stock has managed to move below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly below the neutral level. 

The stock has also formed what looks like a falling wedge pattern. Therefore, the stock will likely have a bullish breakout since the bad news has already been priced in.

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