Not too long ago, Clover Health (NASDAQ:CLOV) had come on to the focus of many investors after it had surpassed expectations in terms of its revenues in the latest reported quarter.
Trading Data
On Monday, CLOV stock increased 0.36% to $2.75 with more than 7.45 million shares, compared to its average volume of 11.56 million shares. The stock moved within a range of $2.5601 – 2.8300 after opening trade at $2.76.
Key Trigger
In fact, the revenues had recorded double-digit growth. However, that did not lead to a lot of joy for its investors as the stock continued to languish and as things stand, it is down by as much as 90% from its highest level in 52 weeks. A low stock price may draw the attention of speculative investors who might believe that the fact that it is cheap might prove to be a good bargain.
While the fact that the Clover Health stocks is cheap is undeniable, it is also necessary for investors to figure out if the stock offers any value at all. Is the stock good value at these levels?
Experts believe that the stock does not offer good value yet and that is for the simple reason that Clover Health is still not profitable as a company. In fact, it can be said that it is not going to be profitable for some years yet. Hence, it may be a good idea to sit this one out.
Technical Data
CLOV stock is below the 20-Day and 50-Day Moving averages of $2.72 and $3.02 respectively. Moreover, the stock is trading below the 200-Day moving average of $4.97.
