Today, retail investor favorite Clover Health (NASDAQ:CLOV) is seeing very strong performance. Indeed, CLOV stock is currently approximately 5% higher on a rather flat day in the overall markets. This move has brought CLOV stock close to its one-month high.
Indeed, there are a few reasons for this outsized move. Investors may note that Clover Health remains one of the most shorted stocks in the market. Given the moves we’ve seen in various short-squeeze plays in recent days, Clover Health’s recent move isn’t that surprising.
Additionally, the market appears to be melting up once again. Risk-on sentiment is taking hold of the market in a big way. And as long as this momentum continues, investors may turn to more speculative, aggressive growth plays in this environment.
However, there are two company-specific catalysts that are also at play today for CLOV stock. Let’s dive into what investors are looking at today with this popular stock.
CLOV Stock Higher on Key Catalysts
In line with overall market sentiment around short-squeeze plays, CLOV stock has seen more than just retail interest in this regard. In fact, institutional money appears to be looking at CLOV stock from this angle.
Yesterday, in a CNBC interview, S3 Partners executive Ihor Dusaniwsky made his case for why Clover Health could be a top candidate for a “post-meme follow-up rally.” The fact that Clover Health was specifically called out as one of his ideas is a big deal. At least, investors in CLOV stock think so.
Additionally, Clover Health has garnered interest among investors looking at the company’s potential to innovate in the health care/insurance space. The company recently filed for a number of U.S. patents. Earlier this week, it was announced that Clover Health was granted two of these patents.
The patents were related to “models for utilizing siloed data” and “clustering data regarding health care providers.” Ultimately, what Clover Health will do with these patents remains to be seen. However, investors have reason to like a company with more intellectual property rather than less. Accordingly, it appears investors have found additional reasons to jump on the Clover bandwagon today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
