Thrive Capital Partners (WA:CPAP) VII Growth, L.P. and Claremount VII Associates, L.P., under the management of Joshua Kushner, have expanded their investment in Oscar Health, Inc. (NYSE:OSCR) by acquiring additional shares valued at approximately $5.44 million. The transactions took place on November 14, 2024, with shares purchased at prices ranging from $15.6124 to $15.9651. Following these purchases, Thrive Capital Partners now holds a total of 6,081,945 shares, while Claremount VII holds 73,277 shares directly. These acquisitions demonstrate continued confidence in the healthcare technology company, which is known for its innovative approach to health insurance services.
In other recent news, Oscar Health has reported a notable upswing in its third-quarter revenue and membership. The health insurance provider announced a 68% year-over-year revenue growth, hitting $2.4 billion, and a matching 68% increase in membership, reaching approximately 1.65 million members. The firm also reported a rise in its medical loss ratio to 84.6% and an improved year-to-date adjusted EBITDA of $312 million, resulting in a net profit of $179 million. Oscar Health has revised its 2024 revenue guidance to between $9.2 billion and $9.3 billion, aiming for a 20% revenue CAGR and a 5% operating margin by 2027. Among recent developments, Oscar Health is planning new products and market expansions, which include a tech-first HMO and a return to the California market. The company anticipates double-digit growth in the ACA market, maintaining a 15% growth assumption for the next year. Despite potential challenges, Oscar Health remains optimistic about significant margin expansion by 2025, driven by disciplined pricing and cost-saving initiatives.
InvestingPro Insights
The recent share purchases by Thrive Capital Partners VII Growth, L.P. and Claremount VII Associates, L.P. align with Oscar Health's (NYSE:OSCR) positive momentum in the market. According to InvestingPro data, Oscar Health has demonstrated impressive revenue growth, with a 51.1% increase over the last twelve months as of Q3 2024, reaching $8.22 billion. This growth trajectory is further emphasized by a remarkable 68.3% quarterly revenue growth in Q3 2024.
InvestingPro Tips highlight that Oscar Health is expected to see net income growth this year, which could justify the increased investment from Thrive Capital and Claremount. Additionally, the company has shown a significant return over the last week, with a 7.75% price increase, suggesting short-term investor optimism.
However, potential investors should note that Oscar Health is trading at a high earnings multiple, with a P/E ratio of 130.33. This valuation metric indicates that the market has high growth expectations for the company, which aligns with its recent revenue performance but also suggests a premium price for its shares.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Oscar Health, providing a more comprehensive view of the company's financial health and market position.
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