Oscar Health Stock Rides Higher As Insider Joshua Kushner Ups Stake: Retail Bets On Trump Boost

Following the latest purchases, the later-stage venture capital fund of Thrive Capital holds 6.08 million Oscar Health shares.

Shares of Oscar Health, Inc.  ($OSCR), a New York-based provider of health insurance, will likely extend their gains from Monday following disclosure regarding insider buying.

Joshua Kushner, the brother of President Donald Trump’s son-in-law Jared Kushner, co-founded the company in 2012.

Oscar Health shares rallied nearly 7.50% on Monday after the company said in a statement that Anahata Foundation, a charitable foundation established  by the company’s CEO Mark Bertolini, purchased 933,333 shares in the company on the open market in the week of Nov. 11.

Later in two filings with the SEC, the company disclosed that Thrive Partners VII Growth GP along with Claremount VII bought 344,522 Oscar Health shares, valued at $5.44 million, last Thursday. 

Following the transaction, Thrive Partners VII Growth GP, the later-stage venture capital fund from Thrive Capital, directly holds 6.08 million shares in the company.

Joshua Kushner is the Managing Partner at Thrive Capital and Claremount VII.

"All shares were purchased in accordance with the daily volume and other limitations and requirements of Rule 10b-18," the company said in the filing.

Thursday’s buy represented follow-on purchases from Nov. 11 when Joshua Kushner bought 1.056 million shares.

On Monday, Wells Fargo lowered its price target for Oscar Health from $27 to $21 but the firm maintained an Overweight rating on the stock, the Fly reported. The price-target cut was due to the premise that the enhanced exchange subsidies will expire by 2026. 

The Medicare Advantage risk/reward improved with the election of Trump but warned that areas of concerns still exist, the analysts added.

Earlier this month, Oscar Health reported a wider-than-expected loss despite top-line exceeding estimates.

In premarket trading, as of 9:08 am ET, Oscar Health shares were up 2.38% at $16.36.  The stock has gained nearly 75% year-to-date.

The insider buying gave retail enough confidence to take a position in the stock. A user on Stocktwits said the heavy insider buying is bullish for the stock and said the $15-ish level is a good entry point.

Trump’s victory, though expected to bear fruit for healthcare companies only in the out-years, was a reason for another user to get bullish on the stock.