Is Clover Health (CLOV) a 20.00 Dollar Stock?

Clover Health recently reported the companies quarterly earnings on August, 11th with outstanding results! Clov reported 384.57 million dollars in revenues up 109% from year to year. Lets not forget Clover Health’s 485.75M cash on hand!

Lets take a look at some more data.

Valuation Measures

Price/Sales (ttm) 12.20

price/book 10.85

Enterprise Value/Revenue 10.22

Based on these three factors above CLOV is undervalued, currently trading at 8.50 cents.

Clover Health (Clov) Chart analysis:

Clov is currently showing support at 8.09 second support, 7.69 and 3rd support level is 7.45. Resistance levels are at 8.73, second resistance level 8.97 and 3rd resistance level is 9.37. If you look at the chart from July 12 until now Clov has constantly held over 8.00 . If Clov breaks through the red cloud Clov can breakout to as high as 18.26 or higher. CLOV is also a highly targeted stock by shorts. 8/16 short interest was 4,897,101 million shares short with total volume of 13 million. The short volume ratio was 35% which is very high. Another factoid to note on 8/12 the short interest was 31,534,277 shares shorted from 78,673,400 total volume.

Bottom Line:

Clov has wild swings both up and down which attracts traders, swing traders and shorts alike. I think the company can very well see $20.00 or more under the right circumstances or a short squeeze like we saw on June 7th when Clov hit 28.00!

Disclaimer:

This is an opinion piece of what we think of the security Clover Health. This is not financial advice and we are not financial advisors. You should consult a financial advisor before purchasing any security mentioned as you could lose your entire investment.