Clover Health Investments Corp (NASDAQ:CLOV) stock is rising Wednesday after the company announced that it expects to achieve its first full-year GAAP net income profitability this year.
Membership Increasing
Clover Health also announced a significant increase in its Medicare Advantage membership. The membership rose to 153,000, marking a 53% increase during the Annual Enrollment Period.
The company attributed its growth to Clover Assistant, an AI web application that doctors and other medical staff use in their day-to-day work to help treat patients.
“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.
Clover Sees Strong Short-Term Momentum
Currently, Clover Health is trading 12.8% above its 20-day SMA and 10.4% above its 50-day SMA, indicating strong short-term momentum. Over the past 12 months, shares have decreased by 23.41%, and they are currently positioned closer to their 52-week lows than highs, reflecting some longer-term challenges.
The RSI is at 46.14, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, the MACD is above its signal line, indicating bullish momentum, which could support further price increases.
The combination of neutral RSI and bullish MACD suggests mixed momentum, but the overall technical indicators lean towards a positive outlook.
Clover Health Stock Rises
CLOV Price Action: Clover Health Investments shares were up 9.45% at $2.78 at the time of publication on Wednesday, according to Benzinga Pro data.
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