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Reddit Traders Take Aim at Clover Health Investments Stock

The security has added more than 72% in the last three months

Digital Content Manager
Jun 28, 2021 at 3:25 PM
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The shares of Clover Health Investments Corp (NASDAQ:CLOV) are down 2.2% at $12.69 at last check. Though a reason for today's negative price action remains unclear, the equity has fallen dramatically from its June 9, record high of $28.85, after it became the target of Reddit traders roughly a year after its Wall Street debut. The meme stock has found a floor at the $12.50 level, however, which coincides with support at the 20-day moving average. Over the last three months, CLOV has added 72.5%.

CLOV 20 Day

What's more, Clover Health Investments stock just appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume within the past two weeks, with new names highlighted in yellow. Digging deeper, 638,708 weekly calls and 137,781 weekly puts have been exchanged during this time. The most popular contract during that two-week period was the 6/25 14-strike call.

MAO 628  

The brokerage bunch is mostly bearish towards the security. Two of the three analysts in coverage called CLOV a tepid "hold" or worse, while only one said "strong buy." Plus, the 12-month consensus target price of $9.50 is a 25% discount to the stock's current perch.

Meanwhile, the 41.40 million shares sold short still makes up a whopping 36.7% of the stock's available float. Should Reddit traders continue to blast CLOV, shares could go even higher.

 

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