Among the stocks retail investors favor, Clover Health (NASDAQ:CLOV) is one de-special purpose acquisition company (SPAC) that certainly hasn’t performed well of late. Today, CLOV stock sunk below $2 per share, hitting a fresh 52-week low. A year ago, many investors would have thought that these sorts of levels would be impossible to see. Alas, here we are.
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A range of factors are responsible for this decline. Notably, interest in SPACs and de-SPACs, or SPACs that have merged with their intended targets, is near all-time lows. Despite a surge among these blank check companies in late 2020 and early 2021, SPACs have fallen off the radars of most investors. That’s because these speculative trading vehicles typically provide exposure to early stage companies with long-term future growth prospects. In this environment of rising interest rates, such stocks are obviously not in favor.
Additionally, Clover Health has been embattled in a number of litigation-related issues in the past. This company is one that’s proven to be a headache for investors for much of 2021, and in this environment, there appears to be little patience from investors to hold onto such stocks.
Let’s dive into whether now might be a good time to load up on CLOV stock at 52-week lows, or if more downside could be on the horizon. Here’s what the experts think.
What the Analysts Think of CLOV Stock
- Gary Taylor of Cowen has upgraded CLOV stock to the equivalent of a hold from a “sell,” with a $3 price target.
- Similarly, SVB Leerink analyst Whit Mayo initiated coverage on CLOV stock with a “hold” rating and a $3 price target.
- Richard Close of Cannacord Genuity is among the bulls on Clover Health, initiating coverage with a “buy” rating and a $6 price target.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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