Shares of Clover Health Investments, Corp. () breached their previous 52-week high of $24.93 in pre-market Wednesday morning. This added to a total increase in the stock’s value of over 110% in the past week amid a to short the stock. Following market open, its price fell just below Tuesday’s close $22.15.
Founded in 2014 and headquartered in Tennessee, Clover Health is a Medicare-backed insurance seller with 458 full-time employees and provides preferred provider organization and health plans for Medicare-eligible consumers through its software platform.
Among the online appreciators of the company is Chamath Palihapitiya, American venture capitalist and CEO of , who placed a on the special purpose acquisition company (SPAC) that allowed Clover to go public. Palihapitiya, who is to internet-fueled market frenzies, saw his investment skyrocket to $682 million after a Tuesday gain of over 30%.
Sentiments surrounding the recent rally starkly contrast those back in early February when , an investment research firm with a focus in activist short-selling which also publishes reports on alleged fraud by other companies, claimed that Clover had without disclosing its ongoing investigation by the Department of Justice. This triggered a spiral in Clover’s share price to its record low of $6.31.
Thomas Hum is a writer at Yahoo Finance. Follow him on Twitter: @thomas_hum_