CNBC host Jim Cramer advised investors to sell their shares in Clover Health Investments Corp. (NASDAQ:CLOV), calling the health insurance company a “two-leaf clover.”
What Happened: Cramer, instead, advised investors to buy shares of Minnesota-based healthcare company UnitedHealth Group Inc. (NYSE:UNH), saying he does not like Clover Health’s business model.
“Why do you want to traffic in Clover? No, thank you. That’s a two-leaf clover,” Cramer said on CNBC’s “Mad Money Lightning Round” on Wednesday.
Why It Matters: “SPAC King” Chamath Palihapitiya-backed Clover Health’s shares surged on Wednesday and is among the stocks seeing the highest interest on Reddit’s WallStreetBets forum, as of Wednesday night.
Reddit users posted screenshots of their recent purchase of shares in the company, with one post on the r/CLOV forum urging other users not to sell their shares until it hits “triple digits.”
About 35.89 million of Clover Health’s shares, or 31.93%, are held short. However, this number has decreased slightly from 41.27 million shares held short in May.
Price Action: Clover Health shares closed almost 6.4% higher in Wednesday’s regular trading session at $8.88 and further gained 5.5% in the after-hours session to $9.37.
UnitedHealth shares closed 0.4% higher in the regular trading session at $414.64.
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