10 Hot Penny Stocks On the Move

7. Clover Health Investments, Corp. (NASDAQ:CLOV)

Share Price as of August 30: $2.82

Current Volume as of August 30: 7.7 million

Number of Hedge Fund Holders: 9

1-Month Performance as of August 30: 59.32%

Clover Health Investments, Corp. (NASDAQ:CLOV) is a healthcare insurance company that provides Medicare Advantage insurance plans to beneficiaries in multiple states in the US. It also runs a proprietary software platform called the Clover Assistant that helps improve healthcare outcomes and reduces costs.

Two main business segments of the company include Insurance and Non-Insurance services. The Insurance segment provides Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO) Medicare Advantage plans in 11 states.

Its Non-Insurance services segment includes the Clover Assistant platform that helps doctors detect and manage chronic diseases earlier by providing personalized data-driven insights for their patients.

The company’s ability to leverage artificial intelligence and data-driven technology into its assistant platform has provided a strategic edge over the market. It is differentiated in managing the clinical outcomes and the total cost of care for people with chronic diseases.

Moreover, Clover Health Investments, Corp. (NASDAQ:CLOV) allows its customers to choose between HMO and PPO insurance, with PPO customers having the leverage to choose their doctor. The company has grown its PPO plan insurance base considerably, with 95% of the members opting for the plan.

The Medicare Advantage (MA) segment has been a key contributor to the company’s growth and its organic insurance revenue grew 11% year-over-year. The strong MA momentum marked the first year of positive net income for the company. The Q2 2024, GAAP net income was $7.2 million after improving $36.1 million year-over-year.

The adjusted EBITDA also improved by $26.3 million year-over-year and management is now aiming for a meaningful adjusted EBITDA profitability for the year. It has also positioned itself in a position to self-fund its future business growth.

CLOV was held by 9 hedge fund holders in Q2 2024, with total stakes worth $18.94 million. Renaissance Technologies is the top shareholder with a position worth $13.86 million. Moreover, the stock has gained more than 59% over the past month, which is impressive for a penny stock.