What Happened?
Shares of health insurance company Oscar Health (NYSE: OSCR) jumped 4.8% in the morning session after the company provided an optimistic financial outlook for 2026 that overshadowed its fourth-quarter 2025 earnings miss. The health insurer reported a fourth-quarter loss of $1.24 per share, which was wider than analyst estimates, while revenue of $2.81 billion also fell short of expectations. However, investors looked past the mixed results and focused on the company's ambitious forecast. For the full year 2026, Oscar Health projected revenue of $18.85 billion at the midpoint, significantly higher than the analyst consensus of approximately $12.76 billion, signaling healthy demand for its products and services.
After the initial pop the shares cooled down to $13.18, up 4.1% from previous close.
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What Is The Market Telling Us
Oscar Health’s shares are extremely volatile and have had 55 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock dropped 2.1% on the news that institutional investor Blue Square Asset Management, LLC, disclosed it sold its entire stake in the company. According to the firm's latest 13F filing with the Securities & Exchange Commission, it exited its position of 17,462 shares. The report also highlighted that several other large investors had recently modified their holdings in the stock. Sales by institutional investors can sometimes worry the market, as these actions may suggest a lack of confidence from informed participants about a company's near-term outlook, prompting others to sell.
Oscar Health is down 12% since the beginning of the year, and at $13.18 per share, it is trading 41.3% below its 52-week high of $22.47 from October 2025. Investors who bought $1,000 worth of Oscar Health’s shares at the IPO in March 2021 would now be looking at an investment worth $378.74.
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