Why Clover Health (CLOV) Stock Is Rising

Zinger Key Points
  • Clover Health Investments shares are trading higher by 4.6% Friday afternoon.
  • The company announced that CMS raised its PPO Medicare Advantage plans' Star rating to 4 Stars for 2025.

Clover Health Investments Corp CLOV shares are trading higher by 4.6% to $4.13 Friday afternoon after the company announced that the Centers for Medicare and Medicaid Services (CMS) has increased the Star rating of its PPO Medicare Advantage plans to 4 Stars for 2025, affecting payments in 2026.

What To Know: Clover Health’s HMO plan rating was also boosted to 3.5 Stars. The company says 95% of Clover's members are covered by its PPO plans. The Star ratings are based on healthcare quality and drug plan performance and Clover's improvement was driven by strong scores in Medication Adherence, HEDIS, and CAHPS.

Notably, Clover earned a 4.94 out of 5 Stars in HEDIS, reflecting high-quality care in areas like diabetes and heart disease management.

CEO Andrew Toy attributed the success to Clover Assistant technology, which helps physicians improve preventive care and coordination.

Jamie Reynoso, CEO of Clover's Medicare Advantage division, highlighted that the improved ratings allow the company to reinvest in better member benefits and support continued growth.

Read Also: Why Morgan Stanley Shares Are Rising

How To Buy CLOV Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Clover Health Investments’s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, CLOV has a 52-week high of $4.28 and a 52-week low of $0.61.

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