Healthcare technology company Clover Health (CLOV) has been subject to several investigations since its stock market debut via an SPAC in January 2021. Its stock is currently trading below $5. So, is it wise to bet on the stock now based on the company’s expanding reach? Let’s find out.Medicare Advantage Insurer Clover Health Investments, Corp. (CLOV), which is based in Franklin, Tenn., made its stock market debut on January 8, 2021, merging with a special purpose acquisition company Social Capital Hedosophia Holdings Corp. III. However, it has faced several controversies since. The stock surged in price to hit its 52-week high of $28.85 on June 9, 2021, driven by Redditors’ interest in it. However, it has since declined significantly.
The stock has lost 40.8% in price over the past month and 73.2% year-to-date to close yesterday’s trading session at $4.50, after hitting its 52-week low of $4.31.
On Nov. 23, CLOV closed a public offering of shares that generated roughly $300 million in gross proceeds. The company is expected to use the proceeds for working capital and general corporate purposes. However, the offering could lead to share dilution. In addition, the CLOV reported losses in its last reported quarter. So, its near-term prospects do not seem very promising.