Wai Conrad sold $1.4M of CLOV (indirect holdings)

Several healthcare stocks fell after bipartisan lawmakers introduced the Protecting Approved Care Act, which aims to reform Medicare Advantage plans. The bill could increase medical loss ratios and administrative burdens for insurers. Astrana Health (ASTH) fell 2.7%, Clover Health (CLOV) 4.8%, Alignment Healthcare (ALHC) 12.6%, and Novavax (NVAX) 3.6%.

Clover Health (CLOV) shares rose 8.53% to $4.71 after Deutsche Bank initiated coverage with a 'buy' rating and $6 price target, citing growth potential in Medicare Advantage and its technology platform. The company reported Q2 net income of $28M, up from a $10.6M loss YoY, with revenues increasing 55.6% to $743.2M. Medicare Advantage membership grew 48% to 157,309. Clover raised its net income and revenue guidance for the year. Hedge fund holdings in CLOV increased fourfold to $79.06M.

Clover Health (CLOV) shares rose 8.5% after Deutsche Bank initiated coverage with a Buy rating and $6.00 price target, citing growth in Medicare Advantage, its Clover Assistant platform, and its risk model. The stock has seen high volatility, with a 24.2% drop last year due to disappointing earnings and lowered guidance. CLOV is up 96.9% YTD but trades 12.3% below its 52-week high.

Progyny (PGNY) and other health insurers reported Q2 earnings, with revenues beating estimates by 2.8% but guidance below expectations. PGNY's revenue grew 5.3% YoY, missing EBITDA guidance. CVS Health (CVS) reported 7.3% YoY revenue growth, beating estimates. Molina Healthcare (MOH) saw a 4.8% YoY revenue decline. Alignment Healthcare (ALHC) grew 31.6% YoY, while Clover Health (CLOV) saw 55.6% YoY growth. Stocks have declined since earnings, except CLOV, which rose 4.3%.

Clover Health (CLOV) reported Q2 2026 net income of $28M, reversing a $10.6M loss from the prior year. Medicare Advantage membership grew 48% YoY to 157,309. Revenue rose 55.6% to $743.2M, and adjusted EBITDA more than doubled. The company raised its full-year guidance, including adjusted EBITDA to $70M-$85M and GAAP net income to $20M-$35M. Cash and investments increased 13.8% YoY to $443.0M.

Clover Health (CLOV) released a Q2 2026 supplemental Q&A, highlighting Clover Assistant's impact on insurance profit and member health. CA-linked members showed higher profit and better health outcomes. The company is investing in growth, expecting leverage as membership increases. Counterpart Health's rollout aims to expand lives under management.