Right now, shareholders of Clover Health (NASDAQ:CLOV) are smiling ear to ear. Although CLOV stock remains down more than 25% year-to-date (YTD), shares of the company are up over 20% today.
Why exactly is Clover Health trading higher right now?
Over the weekend, it was reported that Clover director Chelsea Clinton had recently purchased shares of CLOV stock. The transaction, which occurred on March 3, saw Clinton purchase 100,000 shares for an average price of $2.52 per share. In total, Clinton’s recent transaction amounted to $252,530, according to a Form 4 submitted to the U.S. Securities and Exchange Commission (SEC).
Why Is CLOV Stock Up Today?
Right now, CLOV stock is up in response to Clinton’s purchase, which investors are viewing as a positive signal. Often times, director trading activity like this is important to track because insiders often have a better view of a company’s long-term growth potential than retail investors.
So, with that in mind, are other insiders of Clover bullish on the company? In the past 12 months, insiders have purchased 2.2 million shares and sold 22.9 million shares. That’s a net of 20.6 million shares sold. This mass insider selling seems to correlate with CLOV stock’s decline of more than 60% over the past one year.
Still, with Clinton’s recent purchase, investors are wondering who else is betting big on Clover Health. Let’s jump right in.
Who Else Is Betting Big on Clover Health?
As of the fourth quarter, 160 institutional investors own shares of CLOV stock. That marks a quarter-0ver-quarter (QOQ) increase of 8.8%. During the period, the total amount of shares held by institutional investors also increased from 105.7 million to 129.8 million, up nearly 23% QOQ. Let’s take a look at the top five institutional shareholders.
- Vanguard has 25.9 million shares or 7.65% ownership. The firm purchased 8.8 million shares during Q4.
- Greenoaks Capital Partners owns 24.8 million shares or 7.34% ownership. The firm sold 24.8 million shares during Q4.
- Baillie Gifford has 7.8 million shares or 2.3% ownership. The firm purchased 2.6 million shares during Q4.
- Two Sigma Investments has 6.6 million shares or 1.95% ownership. The firm purchased all 6.6 million shares during Q4.
- PNC Financial Services (NYSE:PNC) owns 6.4 million shares or 1.88% ownership. The firm sold 249,850 shares during Q4.
Out of the top five shareholders, three funds reduced their positions and two funds increased their positions. Greenoaks Capital Partners had the most notable transaction, as the fund sold about 50% of its existing position during Q4. Two Sigma’s 6.6 million share purchase was also notable, as the acquisition put it among the top five shareholders.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Eddie Pan did not hold (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.
