Clover Health (CLOV) Stock Gradually Moves To 52-Week Low: But Why?

At this point, many investors who are looking into stocks in the healthcare industry may have comes across the Clover Health (NASDAQ:CLOV) stock.

Clover Health (CLOV) Stock Gradually Moves To 52-Week Low: But Why?

The company is described as a Medicare Advantage insurer and helps senior citizens in getting affordable healthcare services. While that may seem like a compelling case, it is necessary to point out that not too long ago the short-selling firm Hindenburg Research made some serious allegations against Clover.

In its report, the firm revealed that Clover is under investigation from the Department of Justice for offenses like kickbacks and secret third-party deals among others. The company had actually gone public through a SPAC (special purpose acquisition company) and it is believed by many that the stock soared only because of the hype surrounding SPACs at the time. A SPAC merger IPO does not often go through the same level of scrutiny as a traditional IPO and that is something to be borne in mind by investors.

Richard McEntire

Finance and Entertainment Reporter Richard is a bottle of wine - the older the sweeter. He has already found the sweetest hobby in writing entertainment and finance news for Own Snap. Readers get the updated posts regularly from him searching for real-time news.