Oscar Health's Hy-Vee Partnership Targets 400000 Employees Despite 492nd Volume Rank and Analyst Skepticism

On August 21, 2025, Oscar Health (OSCR) closed at $15.26, reflecting a 0.98% gain. The stock saw a trading volume of 0.17 billion, ranking 492nd in market activity for the day. Recent developments include a partnership with Hy-Vee Health to launch an employer-backed insurance product, "Hy-Vee Health with Oscar," set to cover 400,000 employees in Des Moines starting January 2026. CEO Mark Bertolini emphasized the initiative’s focus on affordable, convenient healthcare solutions, aligning with Oscar’s broader market expansion goals.

Despite the partnership, investor sentiment remains cautious. Analysts highlight a lack of immediate catalysts to drive sustained growth, with Oscar’s stock facing pressure from broader market pessimism. Institutional activity has been mixed: Nuveen LLC added $29.68 million to its holdings, while Vanguard Group increased its stake. Conversely, TD Asset Management Inc reduced its position. Short interest remains elevated at 33.33%, though recent declines suggest improving sentiment.

The stock’s valuation metrics remain challenging. With a P/B ratio of 3.44 and negative earnings, Oscar’s financial performance continues to draw skepticism. Analysts have assigned a "Strong Sell" consensus rating, citing weak earnings projections and competitive pressures in the healthcare sector. However, the Hy-Vee collaboration could offer long-term strategic value, particularly in expanding access to employer-sponsored plans.

A backtested strategy of buying the top 500 volume stocks and holding for one day from 2022 to 2025 yielded a 7.61% total return, with a 1.98% average daily gain. The approach achieved a Sharpe ratio of 0.94, indicating favorable risk-adjusted returns, though it faced a maximum drawdown of -29.16% during downturns. This underscores the strategy’s sensitivity to market volatility, a factor investors should weigh when assessing Oscar’s potential amid broader market dynamics.