Oscar Health stock (OSCR:NYE) saw its shares increase by more than 30 percent on Friday, despite announcing mixed fourth-quarter results. The health insurance company, which offers various insurance plans to individuals, families, and employees, saw its membership expand by 93% year-over-year and its combined ratio improve by 850 basis points to 113.9%.
Although Oscar recorded a loss of $1.05, which was below analyst projections, the firm doubled its revenue to $995.1 million year-over-year. The company expects to generate between $6.4 billion and $6.6 billion in Direct and Assumed Policy premiums in 2023, which is a good outlook. However, the business estimates a range of $75 million to $175 million in adjusted EBITDA loss.
Oscar Health Stock Price Analysis:
According to stock analyst forecasts, the average target price for Oscar Health stock is $5.40 over the next 12 months, with a “Strong Buy” rating.
Despite this, Oscar stock has shown high volatility, poor risk-adjusted returns, and low earnings growth compared to its peers in the sector. Additionally, the company has a low market capitalization and negative cash flow, which may make it less stable in the long run.
However, there are still some positive aspects to consider, such as the stock being underpriced compared to book value, having a high Gross Profit to Asset Ratio, and being in the top quartile compared to its peers.
Oscar Health, Inc. provides health insurance products and services in the United States. The company offers Individual & Family, Small Group, and Medicare Advantage plans, as well as +Oscar, a technology driven platform designed to help providers and payor clients to engage with members and patients.
It also provides reinsurance products. The company was formerly known as Mulberry Health Inc. and changed its name to Oscar Health, Inc. in January 2021. Oscar Health, Inc. was incorporated in 2012 and is headquartered in New York, New York.