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Credit Suisse analyst Jonathan Yong said he was upbeat about the news.
Gabby Jones/Bloomberg
A leadership announcement sent shares of health insurance company
Oscar Health
flying on Tuesday.
Oscar (ticker: OSCR) said that Mark Bertolini, the former chairman and chief executive officer of Aetna, would assume the role of CEO effective April 3. The current CEO, Mario Schlosser, will become president of technology.
Management also confirmed its financial forecasts for 2023.
“While the CEO transition does not alter the company’s near-term trajectory, the addition of a seasoned managed care executive is welcome and provides a stable hand to guide the company toward profitability in the InsureCo business,” Credit Suisse analyst Jonathan Yong wrote in a report Tuesday. It has an Outperform rating on the stock and a target price of $6.
Investors have been waiting for tech-enabled health insurers “to bring on more managed care talent to run the business,” Yong added, especially after years of challenges. Over the past 12 months, for example, Oscar stock has tumbled about 42%.
Investors responded enthusiastically to the leadership announcement, with shares soaring about 65% on Tuesday afternoon to $5.92. It was up more than 91% at its high for the day, its largest intraday percentage increase since the company went public on March 3, 2021, according to Dow Jones Market Data.
Write to Emily Dattilo at [email protected]