Key facts
- Wells Fargo upgraded Oscar Health to Equal Weight from Underweight.
- Wells Fargo raised its price target for Oscar Health to $20 from $11.
- Oscar Health's stock was trading near $20.50 following the upgrade.
- The insurer's stock was already up 43% year-to-date before the upgrade.
- Oscar reported Q1 2026 earnings per share of $2.07, exceeding analyst expectations of $1.06.
- Co-founder Mario Schlosser stepped back from CTO role to Advisor to the CEO.
Wells Fargo upgraded Oscar Health (OSCR) to Equal Weight from Underweight and nearly doubled its price target to $20 from $11, leading to a significant stock price increase. The stock was trading near $20.50 and had already gained 43% year-to-date. The upgrade was based on a review of statutory filings, indicating that enrollment and morbidity outcomes on health insurance exchanges are tracking better than expected for 2026. The firm also noted material improvements in medical loss ratios and more conservative risk adjustment booking by insurers. Florida, Oscar's largest market at approximately 64% of premiums, saw a 13.5% year-over-year decrease in membership, but its medical loss ratio improved by 370 basis points. Oscar reported Q1 2026 earnings per share of $2.07, significantly exceeding the analyst estimate of $1.06, although revenue fell short of estimates. Co-founder Mario Schlosser has transitioned from his roles as President of Technology and Chief Technology Officer to an Advisor to the CEO role, focusing on AI and digital health efforts. Analysts remain more bullish on Oscar's 2026 performance but caution about visibility beyond that year.