NEW YORK—Robinson Elbert O. Jr., a director at Oscar Health, Inc. (NYSE:OSCR), has sold 25,000 shares of the company's Class A common stock. The sale, which took place on November 20, was conducted at a weighted average price of $17.05 per share, resulting in a total transaction value of approximately $426,250.
The shares were sold in multiple transactions with prices ranging from $16.96 to $17.17, according to the filing. Following this sale, Robinson holds 89,512 shares directly. The reported figures include shares expected to be issued in connection with the vesting of restricted stock units.
Oscar Health, headquartered in New York, operates in the hospital and medical service plans industry, providing innovative health insurance solutions.
In other recent news, Oscar Health has announced a substantial surge in its Q3 2024 revenue and membership during its latest earnings call. The health insurance provider reported a 68% year-over-year revenue growth, hitting $2.4 billion, and a parallel 68% increase in membership, bringing its total to approximately 1.65 million members. The firm also noted an increase in its medical loss ratio to 84.6% and a year-to-date adjusted EBITDA of $312 million, culminating in a net profit of $179 million.
Oscar Health has revised its 2024 revenue guidance to a range of $9.2 billion to $9.3 billion, aiming for a 20% revenue CAGR and a 5% operating margin by 2027. In addition to these financial highlights, the company is also expanding its product offerings and market reach, including a tech-first HMO and a return to the California market.
Recent developments indicate Oscar Health's focus on sustainable growth and profitability, with expectations for strong operational performance to continue into 2025. The company is also optimistic about significant margin expansion by 2025, driven by disciplined pricing and cost-saving initiatives. However, the company acknowledges potential downward pressure from CMS's program integrity efforts on ACA market growth. Despite this, Oscar Health remains confident in its growth strategy and its ability to deliver value to its members and shareholders.
InvestingPro Insights
The recent insider sale by Robinson Elbert O. Jr. at Oscar Health, Inc. (NYSE:OSCR) comes at a time when the company's stock has shown significant volatility and mixed financial performance. According to InvestingPro data, Oscar Health has experienced a remarkable 91.88% price total return over the past year, despite a 26.6% decline in the last six months. This volatility aligns with an InvestingPro Tip indicating that the stock generally trades with high price volatility.
Oscar Health's financial metrics present an intriguing picture for investors. The company's revenue growth has been robust, with a 51.1% increase in the last twelve months and an even more impressive 68.3% growth in the most recent quarter. However, the company's profitability metrics are more nuanced. While an InvestingPro Tip suggests that net income is expected to grow this year, and the company has been profitable over the last twelve months, it's worth noting that Oscar Health is trading at a high P/E ratio of 130.57.
For investors considering Oscar Health, it's important to note that the company does not pay a dividend to shareholders, as highlighted by another InvestingPro Tip. Additionally, the company's short-term obligations exceed its liquid assets, which may be a point of concern for some investors.
These insights offer a glimpse into Oscar Health's financial landscape. InvestingPro provides 13 additional tips for OSCR, offering a more comprehensive analysis for those looking to delve deeper into the company's prospects.
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