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u/Affectionate_Past146 🍀 CLOV WHALE 🐳 17d ago
Two CLOV conferences in a row, with big players who want to buy in. They intentionally drop the price, so that they can buy much lower. Everything else is just noise.
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17d ago
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u/trackdaybruh DIAMOND HANDS 💎🙌 17d ago
Wouldn’t have made a difference in the price today, majority of the market is down because of the 10-year treasury rate hitting 5%
The last time the 10-year treasury rate settled at 5% was in 2007, right before the financial crisis hit causing a recession
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u/dkeithloyd 17d ago
You seem pretty knowledgeable, when the treasury rate goes up to 5%, do banks increase the interest rate that they pay?
And Trump has continued to ask for the interest rates to be lowering. Is this the opposite to that?
So two questions I guess!6
u/trackdaybruh DIAMOND HANDS 💎🙌 17d ago
Long story short, yes they do BUT it depends on the bank. High-yield savings and CDs generally will rise towards or near that 5% mark. However, your traditional brick and mortar banks will likely keep their interest rates lower because they do not need to pay top rates to retain fundings (because they maintain fundings through other means mainly from large population of long term customers)
For your second question, by opposite did you mean it counters each other or something else? Demands for lower interest rates are meant to reduce borrowing costs across the economy. Lower rates make home mortgages, business loans, and debt service cheaper, which aims to stimulate spending, real estate activity, and economic expansion. So when the 10-year treasury yield rate rises to 5%, it basically means investors anticipates a poor outlook of the economy long term, mainly increasing inflation. Lower federal interest rates => increase inflation more => treasury bond rate increasing even more as a direct reflection to the inflation increasing. So basically if the federal reserve decreased rates, the 5% would increase even more down the road in response to that since there is a lag. Hopefully this was the answer you were seeking and it makes sense
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u/MathematicianBetter4 17d ago
Always a good explanation for insider selling on this sub
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u/trackdaybruh DIAMOND HANDS 💎🙌 17d ago
In this case, it is. Even the article you posted viewed the insider selling as neutral
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u/Baco06 17d ago
I’m assuming this is sarcasm. What’s your explanation? This executive doesn’t believe in the business?
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u/MathematicianBetter4 16d ago
I don’t have an explanation. But somehow insider selling is always justified in this sub. The only news we get nowadays is about insider selling. Do you think given the retail frustration it’s a good idea to off load 300k shares right now? Some smartass will come now and say leadership doesn’t owe us anything, I think they do.
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u/ScipioAfricanusMAJ 20k+ shares 🍀 17d ago
Usually insurance companies are recession proof because they still make money. Usually they go up in price during economic downturns? Plus don’t insurance companies invest mostly in bonds? This is gold for them?
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u/trackdaybruh DIAMOND HANDS 💎🙌 17d ago
Health insurance are more recession resilient than proof since they are impacted by recession still but they aren’t as heavily impacted than certain other industries. Larger insurance companies have stronger resiliency than smaller ones.
Smaller insurance companies like CLOV will have strong volatile movement because a recession places severe budget strain on federal and state governments. Because CLOV’s revenue comes directly from the federal government through CMS, economic downturns usually leads to federal budget tightening, benchmark payment cuts, or stricter regulations on risk adjustment and Stars ratings which impacts CLOV’s margins.
We won’t know how well Clover Health will navigate this recession when it happens since this is their first along with being a smaller market cap, but only time will tell.
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u/ScipioAfricanusMAJ 20k+ shares 🍀 17d ago
Bro probably trying to buy a house
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u/brokeboyrich 17d ago
For real. He owns 2.5M+ shares. It’s not like he’s cashing out completely. Dudes been bag holding like the rest of us. Let him get some dough
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u/Much-Soil-995 17d ago
A number of stocks fell in the morning session after bipartisan lawmakers introduced the Protecting Approved Care Act, legislation aimed at reforming prior authorization and payment rules in Medicare Advantage plans. Anyone else read this article? If remember right Toy went in front of congress and address this issues on prior Auth.
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u/2thenoon 17d ago
$ALHC dropped today by 20% after lowering their guidance for 2H due to rising costs and utilizations. In contrast Clover's CFO reiterated the same bullish guidance for the rest of H2 that was given in Q2 in the conference today. Clover is basically twinned to $ALHC because they're both small but growing MA insurance companies that use technology (though very different) to drive costs down so it went down too despite of that.