Clover Health stock drops after mixed earnings, announcement of impending CEO change

Shares of Clover Health Investments Corp.
CLOV,
+4.29%,
which offers insurance plans to Medicare Advantage members, were off more than 6% in after-hours trading Monday after the company delivered a mixed earnings report and disclosed that its chief executive would be stepping down from that post at year’s end. The company posted a net loss of $104.2 million, compared with a loss of $317.6 million a year earlier. Clover Health did not offer an earnings-per-share figure in its release. Clover posted a loss on the basis of adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of $87.5 million, compared with a $107.1 million loss on the metric a year before. Analysts tracked by FactSet were modeling an $80.1 million adjusted Ebitda loss. Revenue increased to $846.7 million from $412.5 million, whereas the FactSet consensus was for $814.6 million. The company further disclosed that Chief Executive Vuvek Garipalli “will transition his role of CEO” beginning at the start of 2023, with President Andrew Toy taking over. Garipalli, also the company’s chairman, will begin serving as executive chairman. Shares of Clover Health are up 26% over the past three months as the S&P 500
SPX,
-0.12%
has ticked up 0.4%.