Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sellside) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Oscar Health, Inc. (OSCR) . Oscar Health currently has an average brokerag ...

Membership and Market Presence - As of June 30, 2024, Oscar Health, Inc. has approximately 1.6 million members[80] - The company will not renew its Cigna+Oscar Small Group arrangement, exiting the small group market effective December 15, 2024[87] - Membership increased by 610,182, or 63%, as of June 30, 2024, compared to June 30, 2023, driven by strong retention and new enrollments[3] Financial Performance - Total revenue for the three months ended June 30, 2024, was $2,219,341, an increase of 46% compared to $1,521,535 for the same period in 2023[1] - Premium revenue increased by $689.2 million, or 47%, for the three months ended June 30, 2024, compared to the same period in 2023[4] - Investment income rose by $8.5 million, or 21%, for the three months ended June 30, 2024, compared to the same period in 2023[5] - Adjusted EBITDA for the three months ended June 30, 2024, was $104,126, compared to $35,572 for the same period in 2023[14] Medical Expenses and Ratios - Medical expenses increased by $526.7 million, or 45%, for the three months ended June 30, 2024, compared to the same period in 2023[8] - The Medical Loss Ratio (MLR) improved to 79.0% for the three months ended June 30, 2024, compared to 79.9% for the same period in 2023[9] - The Selling, General and Administrative Expense Ratio (SG&A Expense Ratio) is used to evaluate the company's ability to manage its overall cost base[84] Cash Flow and Capital Management - Net cash provided by operating activities for the six months ended June 30, 2024, was $1,131.5 million, an increase from $580.2 million for the same period in 2023, primarily due to higher premiums received[132] - Net cash used in investing activities for the six months ended June 30, 2024, was $778.2 million, a significant change from net cash provided of $179.4 million for the same period in 2023, mainly due to increased purchases of securities[132] - Net cash provided by financing activities for the six months ended June 30, 2024, was $46.0 million, compared to $3.1 million for the same period in 2023, driven by proceeds from stock option exercises[133] - The combined statutory capital and surplus of health insurance subsidiaries was $1,108.3 million as of June 30, 2024, exceeding minimum capital requirements[18] Regulatory and Operational Considerations - Regulatory updates indicate ongoing Medicaid redeterminations, which may contribute to growth in the ACA marketplace[97] - The company is experiencing seasonal patterns affecting member enrollment and medical expenses, with higher costs typically in the second half of the year[94] - A cybersecurity incident involving Change Healthcare occurred on February 21, 2024, but no breach of member data has been reported[89] Investment and Risk Management - Risk adjustment transfer estimates are subject to variability and uncertainty, impacting revenue adjustments based on member demographics and claims[92] - Net investment income for health insurance subsidiaries was $47.2 million for the three months ended June 30, 2024, compared to $39.3 million for the same period in 2023[130] - The company has $115.0 million available to draw under its Revolving Credit Facility until December 2025, with no outstanding borrowings as of June 30, 2024[127] - Assuming a hypothetical 1% increase in interest rates at June 30, 2024, the fair value of the company's investments would decrease by approximately $32.9 million[135] - The company expects cash flows from operations to primarily fund its long-term cash requirements under various contractual obligations[124] - The company maintains cash and cash equivalents and investments on deposit or pledged to various state agencies as a condition for licensure, classifying these as long-term due to regulatory requirements[131]

Financial Data and Key Metrics Changes - The company reported total revenue of $2.2 billion for Q2 2024, representing a 46% year-over-year increase [5][13] - The medical loss ratio improved by 90 basis points year-over-year to 79% [5][13] - Adjusted EBITDA for Q2 was $104.1 million, an increase of nearly $69 million compared to the previous year [5][15] - The first half of 2024 saw adjusted EBITDA of $323 million, a significant year-over-year improvement of $237 million [5][15] - Net income for Q2 was approximately $56 million, improving by $72 million year-over-year [15] Business Line Data and Key Metrics Changes - The company closed the quarter with approximately 1.6 million members, a 63% increase year-over-year [6][13] - Membership growth was driven by strong retention, new memberships in existing markets, and special enrollment period (SEP) additions [7][13] - The company expects continued SEP member additions into the second half of the year, albeit at a decelerated rate [7] Market Data and Key Metrics Changes - The company experienced growth in approximately 80% of its states year-over-year, capturing more market share [7] - The ACA market serves nearly 22 million lives, significantly lowering the uninsured rate for small businesses [10] Company Strategy and Development Direction - The company aims for at least 20% revenue CAGR and a 5% operating margin by 2027, with plans to double its footprint in Oscar Insurance [6] - The company is focusing on diversifying growth beyond traditional ACA by building a leading ICRA business [6] - Investment in technology is emphasized as a key asset driving member experiences and operational efficiencies [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term goals, supported by strong first-half performance [11][12] - The company views the continuation of enhanced subsidies as a critical bipartisan issue that could impact the uninsured rate [11] - Management noted that the ACA is the fastest-growing market in health insurance, with a notable shift in sentiment from policymakers [10] Other Important Information - The company raised its full-year 2024 revenue guidance by $700 million to a range of $9 billion to $9.1 billion [5][16] - The expected medical loss ratio for 2024 is now in the range of 80.5% to 81.5% [16] - The SG&A expense ratio is expected to be lower, in the range of 19.75% to 20.25% [17] Q&A Session Summary Question: About the improved guidance and SEP membership dynamics - Management indicated that the difference in guidance is primarily driven by SEP growth, which comes with in-year MLR headwinds [19][21] Question: On 2025 rate requests and divergence in requested rate increases - Management explained that rate requests are driven by local market performance, leading to expected differences across geographies [24] Question: Pricing relative to competitors for 2025 and market growth expectations - Management anticipates market growth of around 15% in 2025, supported by strong distribution and enhanced subsidy programs [27][28] Question: Update on ICRA related conversations and membership opportunities - Management noted strong interest and opportunities in ICRA, with guidance on membership for 2025 to be provided later [31][32] Question: Clarification on guidance changes regarding revenue and MLR - Management confirmed that the additional SEP membership growth has higher MLR implications, but overall economics are in line with expectations [35][36]

Oscar Health, Inc. (OSCR) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post earnings of $0.28 per share when it actually produced earnings of $0.62, delivering a surprise of 121.43%. Over the last four quarters, the company h ...

Oscar Health, Inc. ir.hioscar.com News Release Oscar Health Announces Results for Second Quarter 2024 and Raises Full Year Revenue and Adjusted EBITDA Outlook August 7, 2024 • For the quarter ended June 30, 2024: ◦ Total Revenue of $2.2 billion, a 46% increase YoY ◦ Medical Loss Ratio of 79.0%, a 90 bps improvement YoY ◦ SG&A Expense Ratio of 19.6%, a 260 bps improvement YoY ◦ Net income attributable to Oscar of $56.2 million, or $0.20 of diluted earnings per share, a $71.7 million improvement YoY ◦ Adjuste ...

Oscar Health Wednesday reported $56 million in net income – its second quarterly profit in the ... [+] company's 12-year history – as the provider of individual coverage under the Affordable Care Act grows its health plans for consumers and employers, the company said August 7, 2024. Oscar Health Oscar Health Wednesday reported $56 million in net income – its second quarterly profit in the company's 12- year history – as the provider of individual coverage under the Affordable Care Act grows its health plan ...

The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Oscar Health, Inc. (OSCR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. Oscar Health, Inc. is a member of our Finance group, which includes 862 different companies and currently sits at #5 in the Zacks Secto ...

Shares of the company witnessed a loss of 14.89% over the previous month, trailing the performance of the Finance sector with its loss of 1.05% and the S&P 500's gain of 3.82%. OSCR's full-year Zacks Consensus Estimates are calling for earnings of -$0.06 per share and revenue of $8.7 billion. These results would represent year-over-year changes of +95.08% and +48.38%, respectively. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, val ...

Shares of the company have depreciated by 14.01% over the course of the past month, underperforming the Finance sector's loss of 4.28% and the S&P 500's gain of 5.11%. Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. Oscar Health, Inc. (OSCR) closed at $16.59 in the latest trading session, marking a +1.22% mo ...

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Has Oscar Health, Inc. (OSCR) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnin ...