Clover Health (CLOV) Stock Sinks on Leadership Change Announcement

  • Clover Health (CLOV) stock is slipping on news of a CEO change.
  • President Andrew Toy will replace current CEO Vivek Garipalli starting in 2023.
  • Garipalli will remain at Clover Health as Executive Chairman of the company’s board.
Clover Health logo on a phone screen in front of a computer screen showing a map where their services reach. CLOV stock.

Source: Wirestock Creators / Shutterstock

Clover Health (NASDAQ:CLOV) stock is falling on Tuesday after the company announced that changes are coming to its leadership team.

CEO Vivek Garipalli will leaving his role at Clove Health by the end of the year. Current President Andrew Toy will replace the CEO. However, Garipalli will stick around as the Executive Chairman of the company’s board. Currently, he serves as Chairman.

In addition to this news, Clover Health also just released second-quarter results. The release included an adjusted earnings per share (EPS) loss of 22 cents. That’s worse than the -20 cents per share Wall Street had expected.

On the flip side, Q2 revenue did come in at $846.7 million, beating estimates. This was also a massive gain next to revenue of $412.5 million reported in Q2 2021.

Clover Health also reaffirmed its outlook for the full year of 2022. The company expects full-year revenue to range from $3 billion to $3.4 billion. For comparison, Wall Street’s 2022 estimate for Clover’s revenue is $3.31 billion.

Garipalli said the following in the company’s Q2 earnings report.

“Our focus on building a sustainable, intelligent growth engine has led to a reduction in MCRs and improvement in operational efficiencies which we believe is the foundation of our progress toward profitability.”

CLOV stock is down 18% as of Tuesday morning.

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On the date of publication, William White 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 Publishing Guidelines.

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