Clover Health Investments Corp (CLOV) is having a pretty good Wednesday. The health insurance company announced it expects to hit a major milestone this year: its first full-year GAAP net income profitability. That's the kind of news that tends to get investors' attention, and the stock responded accordingly.
Medicare Membership Jumps 53%
But profitability isn't the only headline here. Clover Health also revealed that its Medicare Advantage membership climbed to 153,000 during the Annual Enrollment Period—a 53% increase. That's a substantial jump, and the company has a theory about what's driving it.
The secret sauce? Clover Assistant, an AI-powered web application that doctors and medical staff use to help treat patients more effectively. According to the company, this tool has been key to improving clinical outcomes and attracting new members.
"This year's AEP performance shows what happens when robust plan benefits, Clover Assistant-enabled clinical performance, and a deepening market presence in local communities come together," said Jamie Reynoso, CEO of Medicare Advantage at Clover Health.
Technical Signals Show Mixed Picture
Looking at the technicals, Clover is trading 12.8% above its 20-day simple moving average and 10.4% above its 50-day SMA, suggesting solid short-term momentum. However, zoom out and the picture gets murkier: shares are down 23.41% over the past 12 months and sitting closer to their 52-week lows than highs.
The RSI sits at 46.14, firmly in neutral territory, meaning the stock isn't overbought or oversold. Meanwhile, the MACD is above its signal line, pointing to bullish momentum that could support further gains. It's a mixed bag, but the overall technical setup leans slightly positive.