Shares of Oscar Health, Inc. (NYSE:OSCR) experienced a significant increase of 10.9% during midday trading on Thursday, reaching as high as $21.28 after closing at $19.19. A total of approximately 4.5 million shares were traded, which represented a decline of 20% compared to its average daily trading volume of 5.6 million shares.
Despite this midday surge, recent analyst evaluations have presented a mixed outlook for Oscar Health. Notably, on March 13, Wells Fargo & Company downgraded the company from an “overweight” to an “equal weight” rating and reduced its price target from $20.00 to $16.00. Similarly, Piper Sandler lowered their price target from $25.00 to $18.00 while maintaining an “overweight” rating for the stock. A few other financial firms have also adjusted their ratings, resulting in an average rating of “Hold” and a target price of approximately $16.50.
Financial metrics reveal a market capitalization of $5.19 billion for Oscar Health, with a P/E ratio of 72.89. The company reported earnings of $0.92 per share for the last quarter, surpassing analysts’ expectations of $0.83. Revenue figures showed a remarkable increase of 42.2% year-over-year, amounting to $3 billion, exceeding the anticipated $2.87 billion.
Insider trading activity includes a notable transaction from Director Elbert O. Jr. Robinson, who sold 25,000 shares at an average price of $16.43, resulting in a substantial decrease in his ownership. In terms of institutional investment, several firms have increased their stakes in Oscar Health, reflecting continued interest among larger investors.
Oscar Health continues to navigate a complex financial landscape as it operates in the U.S. health insurance market, focusing on providing health plans and a tech-driven platform aimed at transitioning toward value-based care.
This mix of upward trading trends alongside cautious analyst evaluations highlights the ongoing volatility and potential opportunity for investors in the health insurance sector. While challenges exist, the company’s strong revenue growth may indicate a positive trajectory moving forward.