Oscar Health (NYSE:OSCR) saw its stock rating downgraded from “Hold” to “Sell” by Wall Street Zen in a research report published on October 7, 2023. This change reflects the growing concerns surrounding the company’s financial performance and market position.
Several analysts are weighing in on Oscar Health’s trajectory. For instance, Weiss Ratings reaffirmed a “Sell (d)” rating on October 8, while Zacks Research upgraded the company from a “Strong Sell” to a “Hold” rating on October 13. The Goldman Sachs Group initiated coverage on October 14 with a “Neutral” rating and a target price of $17.00. In contrast, Barclays adjusted its price objective from $11.00 to $13.00, maintaining an “Underweight” rating on November 10. On November 25, Piper Sandler upgraded Oscar Health from “Neutral” to “Overweight,” increasing its price target for the stock from $13.00 to $25.00.
Currently, one equity research analyst has assigned a “Buy” rating, while five analysts have designated a “Hold” rating and five have issued a “Sell” rating. According to MarketBeat data, the average rating for Oscar Health stands at “Reduce,” with a consensus target price of $14.86.
Recent Earnings and Financials
Oscar Health released its quarterly earnings report on November 6, 2023, revealing an earnings per share (EPS) of ($0.53), exceeding the consensus estimate of ($0.55) by $0.02. The company reported revenue of $2.93 billion, falling short of the estimated $3.09 billion. The firm recorded a negative net margin of 2.16% and a negative return on equity of 21.50%. Despite the challenges, Oscar Health’s revenue was up by 23.2% year-over-year, compared to ($0.22) EPS in the same period last year. Analysts forecast that Oscar Health will report an EPS of 0.69 for the current fiscal year.
Insider Transactions and Shareholder Activity
In related news, insider transactions at Oscar Health have raised eyebrows. On December 2, 2023, insider Janet Liang sold 7,338 shares at an average price of $16.59, totaling $121,737.42. Following this sale, Liang holds 172,527 shares valued at approximately $2.86 million, reflecting a 4.08% decrease in her position.
Additionally, insider Mario Schlosser sold 395,000 shares on September 22, 2023, at an average price of $18.43, resulting in a transaction value of $7.28 million. Post-sale, Schlosser owns 501,148 shares worth around $9.24 million, marking a significant 44.08% reduction in ownership. Over the past ninety days, insiders have sold a total of 739,472 shares, amounting to approximately $12.62 million. Notably, corporate insiders hold 25.11% of the company’s stock.
Large institutional investors have also been active, with Thrive Capital Management LLC increasing its stake in Oscar Health by 33.4% during the fourth quarter, now owning 6,343,617 shares valued at $85.26 million. Other notable investors include Vanguard Group Inc., which raised its holdings by 3.7%, and Swiss National Bank, which increased its ownership by 1.0%. Currently, institutional investors collectively own 75.70% of Oscar Health’s stock.
Oscar Health, Inc. operates as a health insurance provider in the United States, focusing on individual and small group markets. The company also utilizes a technology-driven platform known as +Oscar to facilitate the transition to value-based care for providers and payors.
