Thrive Capital has disclosed a significant acquisition of shares in Oscar Health, Inc. (NYSE:OSCR), totaling approximately $14.4 million. The purchases occurred over three consecutive days, from November 11 to November 13, 2024, with shares acquired at prices ranging from $13.5779 to $13.7369.
The transactions involved three separate purchases: 276,040 shares were acquired on November 11, 420,819 shares on November 12, and 358,619 shares on November 13. Following these transactions, Thrive Capital and its affiliates now hold a substantial number of shares in Oscar Health, with Thrive Capital Partners (WA:CPAP) VII Growth, L.P. and Claremount VII Associates, L.P. increasing their stakes significantly.
Thrive Capital, led by Joshua Kushner, plays a prominent role in Oscar Health's board, with Kushner representing the firm as a director. This strategic move underscores Thrive Capital's ongoing commitment to the health insurance company, further solidifying its influence within Oscar Health.
In other recent news, Oscar Health has reported a substantial surge in its third-quarter revenue and membership. The health insurance provider's Q3 revenue climbed by 68% to $2.4 billion, with membership also seeing a 68% increase, reaching approximately 1.65 million members. The company's net profit stood at $179 million, with an improved year-to-date adjusted EBITDA of $312 million.
Oscar Health has also raised its 2024 revenue guidance to between $9.2 billion and $9.3 billion, targeting a 20% revenue compound annual growth rate (CAGR) and a 5% operating margin by 2027. Other developments include the launch of new products and market expansions, including a tech-first HMO and a return to the California market. The company anticipates double-digit growth in the Affordable Care Act (ACA) market, maintaining a 15% growth assumption for the next year.
The company's future outlook focuses on sustainable growth and profitability, expecting strong operational performance to continue into 2025. Oscar Health also anticipates significant margin expansion by 2025, driven by disciplined pricing and cost-saving initiatives. Detailed guidance for 2025 will be provided in the upcoming fourth-quarter earnings call. These are the recent developments from Oscar Health.
InvestingPro Insights
Thrive Capital's recent $14.4 million investment in Oscar Health (NYSE:OSCR) comes at a time when the company's financial metrics present a mixed picture. According to InvestingPro data, Oscar Health has shown impressive revenue growth, with a 51.1% increase in the last twelve months as of Q3 2023, and an even more striking 68.3% quarterly growth in Q3 2023. This robust top-line expansion aligns with Thrive Capital's bullish stance on the company.
However, investors should note that Oscar Health is trading at a high earnings multiple, with a P/E ratio of 110.08. This valuation suggests that the market has high expectations for future growth, which Thrive Capital's investment seems to support. An InvestingPro Tip indicates that net income is expected to grow this year, potentially justifying the premium valuation.
Despite the positive growth outlook, Oscar Health faces challenges. The company suffers from weak gross profit margins, as highlighted by another InvestingPro Tip. This is reflected in the gross profit margin of 21.21% for the last twelve months as of Q3 2023. Additionally, the stock has experienced significant volatility, with a 23.32% decline in the past month and a 40.95% drop over the last six months.
For investors considering following Thrive Capital's lead, it's worth noting that InvestingPro offers 12 additional tips for Oscar Health, providing a more comprehensive analysis of the company's prospects. These insights could be valuable in understanding the full context of Thrive Capital's investment decision.
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