What Happened?
Shares of health insurance company Oscar Health (NYSE: OSCR) fell 15.1% in the afternoon session after Barclays assigned a Bearish rating and negative sentiment spread from a peer company.
Barclays initiated coverage on the health insurance company with a bearish "Underweight" rating and a $17 price target, citing emerging policy risks that could jeopardize Oscar's growth and margin targets. The firm pointed to potential headwinds from new integrity rules, issues with Cost-Sharing Reduction (CSR) funding, and the eventual expiration of enhanced subsidies for Affordable Care Act (ACA) plans, all of which could pressure Oscar's performance.
Adding to the negative pressure, fellow health insurer Centene (CNC) withdrew its 2025 guidance, sparking fears of broader challenges within the ACA marketplace. This news sent a ripple effect across the sector, pulling down shares of related companies, including Oscar Health, as investors grew more cautious about the industry's outlook.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Oscar Health? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Oscar Health’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. But moves this big are rare even for Oscar Health and indicate this news significantly impacted the market’s perception of the business.
Oscar Health is up 28.3% since the beginning of the year, but at $17.39 per share, it is still trading 25.3% below its 52-week high of $23.27 from September 2024. Investors who bought $1,000 worth of Oscar Health’s shares at the IPO in March 2021 would now be looking at an investment worth $499.71.
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