Oscar Health just got body slammed. The stock plummeted over 22% from its late June high of $21.53 and sank to $16.70 in a flash. But here’s what caught traders’ eyes. Nearly 77 million shares traded hands in a single session, the highest daily volume Oscar has ever seen. That’s not your average exit. That’s accumulation.
Retail ran for the exits, but someone was stepping in—quietly, aggressively. Institutional holders like Vanguard (owns 8.3%) and BlackRock (3.1%) didn’t touch their positions. No reduction. No rebalancing. No fear. If anything, block-level inflows hit just under $150 million according to clearing desk data from July 2.
Let’s look at what these insiders might be seeing.
Oscar reported Q1 revenue of $3.05 billion, a 41.8% year-over-year gain. That is not a rounding error. That is hypergrowth. Earnings flipped into the green. Net income crossed $275 million, and EPS finally turned positive for the first time since IPO. Free cash flow? Roughly $346 million. The balance sheet shows $1.5 billion in liquid cash. Not a fairytale. A cash fortress.
But this move wasn’t about fundamentals alone. This was about speed, leverage, and fear. And maybe the smell of opportunity.
Now to be clear, Oscar still bleeds on margins. EBIT is in the red. Debt to equity sits above 4.2. Profitability is new and fragile. Most analysts refuse to go past “hold.” Several firms updated price targets to the $18–$19 range, right where the stock is trying to reclaim footing now.
That’s why traders are split.
Bullish case
• Revenue up 41.8% in latest quarter
• Positive EPS, net income over $275M
• Cash pile of $1.5B
• Heavy institutional holding remained intact
• Relative Strength rating at 92, shows strong momentum
• Unusually high volume shows real accumulation on pullback
Bearish case
• Margins remain negative
• Debt levels remain high, above 4x equity
• Analyst consensus mixed, with targets already near current levels
• Stock is up 173% year to date, extended technically
• Chatter on Reddit and X shows signs of FOMO-driven trades
Social media exploded. WSB threads called Oscar the “Palantir of healthcare,” with users mocking the selloff while showing screen grabs of buy orders at $16.90. On X, $OSCR was trending across FinTwit and biotech watchlists, pushing into the top 30 tickers discussed Tuesday. One popular trader account claimed to see $10 million in call sweeps hit the tape before noon. The squeeze crowd is circling.
Still, this isn’t a Reddit pump. This is a digital healthcare stock showing real financial results while trading back under $17. If support holds, the move to $20 will be fast. If it breaks again, expect a gap to $14. Smart traders are watching flow, not feelings.
Volume speaks. Watch the hands buying, not the mouths screaming.
Sources:
https://www.marketbeat.com/stocks/NYSE/OSCR/institutional-ownership/
https://www.marketbeat.com/stocks/NYSE/OSCR/chart/
https://seekingalpha.com/article/4799073-why-im-buying-oscars-panic-dip
https://stockanalysis.com/stocks/oscr/history/
https://www.michael-burry.com/oscr-stock-analysis/
https://www.marketbeat.com/stocks/NYSE/OSCR/forecast/
Disclaimer: This is not financial advice