Why Clover Health Tanked 33.9% in November
Investors in Clover Health (NASDAQ: CLOV) had a rough November. Shares of the stock were down 33.9% in the period, according to data from S&P Global Market Intelligence. The healthcare company that is trying to revolutionize Medicare insurance with its Clover Assistant platform posted earnings for the third quarter and closed on a common stock offering in the month.
On Nov. 8, Clover Health released its earnings results for the third quarter, which ended in September. The company's top-line numbers looked good, with revenue growing 153% year over year to $472.2 million. However, deeper into the report things don't look too hot for Clover Health. The company's medical care ratio (MCR) for its Medicare patients, which measures costs as a percentage of premiums earned, stood at 102.5% in Q3, up from 86.7% last year. Any number over 100% means Clover's costs were greater than the premiums it earned, which is not a good thing.
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Source Fool.com