Centene (NYSE:CNC) Rating Lowered to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Centene from “strong buy” to “buy,” while the broader analyst consensus remains “hold,” with nine buy ratings, eleven holds, and one sell rating and an average price target of $73.60.
• Several brokerages raised their price targets, including UBS to $78 and JPMorgan to $75, despite maintaining neutral ratings.
• Centene reported quarterly earnings of $0.58 per share, beating estimates by $0.48, while revenue reached $50.65 billion and rose 1.9% year over year; however, membership pressure remains a key business risk.

Centene (NYSE:CNC - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other brokerages have also recently commented on CNC. UBS Group increased their price objective on shares of Centene from $70.00 to $78.00 and gave the company a "neutral" rating in a research note on Wednesday. Argus upgraded shares of Centene from a "hold" rating to a "buy" rating and set a $80.00 target price for the company in a research report on Tuesday, August 11th. JPMorgan Chase & Co. upped their price target on shares of Centene from $67.00 to $75.00 and gave the company a "neutral" rating in a report on Thursday. TD Cowen reiterated a "hold" rating and issued a $65.00 price target (up from $47.00) on shares of Centene in a research report on Tuesday, July 14th. Finally, Weiss Ratings raised shares of Centene from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday. Nine analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $73.60.

Centene Stock Down 0.3%

CNC opened at $68.42 on Friday. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.15 and a current ratio of 1.16. The company has a market cap of $33.87 billion, a price-to-earnings ratio of 13.02, a PEG ratio of 0.40 and a beta of 1.13. Centene has a one year low of $31.63 and a one year high of $72.50. The business's fifty day moving average is $66.09 and its two-hundred day moving average is $55.26.

Centene (NYSE:CNC - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The company reported $0.58 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.48. The business had revenue of $50.65 billion during the quarter, compared to analysts' expectations of $47.12 billion. Centene had a return on equity of 12.15% and a net margin of 0.72%. The business's revenue for the quarter was up 1.9% on a year-over-year basis. During the same quarter last year, the business posted $0.50 earnings per share. Analysts anticipate that Centene will post 5.22 EPS for the current fiscal year.

Insider Activity

In related news, General Counsel Christopher Koster sold 56,500 shares of the stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $66.90, for a total transaction of $3,779,850.00. Following the sale, the general counsel owned 248,854 shares of the company's stock, valued at $16,648,332.60. This trade represents a 18.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.37% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in CNC. Citizens Financial Group Inc. RI lifted its position in Centene by 71.5% during the third quarter. Citizens Financial Group Inc. RI now owns 41,815 shares of the company's stock valued at $2,598,000 after buying an additional 17,429 shares in the last quarter. Deutsche Bank AG purchased a new stake in Centene during the second quarter worth approximately $257,279,000. Hara Capital LLC acquired a new stake in shares of Centene in the second quarter worth $5,222,000. Paralel Advisors LLC acquired a new stake in shares of Centene in the second quarter worth $4,531,000. Finally, Roberts Glore & Co. Inc. IL acquired a new position in shares of Centene during the 2nd quarter valued at $1,659,000. Institutional investors and hedge funds own 93.63% of the company's stock.

Centene News Roundup

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Analysts continue to raise price targets. Wells Fargo lifted its target from $69 to $75 while maintaining an “equal weight” rating. JPMorgan also raised its target from $67 to $75, and UBS increased its target from $70 to $78. These revisions suggest analysts see additional value after Centene’s earnings update, even though the ratings remain cautious. Wells Fargo analyst update JPMorgan analyst update UBS analyst update
• Positive Sentiment: Strong quarterly results and higher guidance support the stock. Centene exceeded earnings and revenue expectations, and its quarterly revenue increased year over year. The company’s guidance increase reinforces expectations for improved profitability and prompted additional analyst optimism. Centene Q3 earnings and guidance Centene guidance increase
• Neutral Sentiment: Analyst ratings remain restrained. Wells Fargo and UBS retain “equal weight” or “neutral” recommendations, indicating that the higher targets reflect moderate appreciation potential rather than a strong conviction that CNC is significantly undervalued. Centene analyst price target update
• Negative Sentiment: Membership pressure remains a key risk. Coverage has highlighted lingering membership challenges and uncertainty over whether Centene can maintain a stable health benefits ratio. These issues could offset the benefit of stronger earnings and guidance if they pressure margins or future revenue growth. Centene membership pressures Centene health benefits ratio analysis

About Centene

Centene Corporation is a diversified healthcare enterprise that provides government-sponsored and commercial health insurance programs and related healthcare services. The company's offerings are primarily focused on Medicaid, Medicare, and health insurance marketplace plans, with an emphasis on serving individuals and families who may have limited access to traditional healthcare coverage.

Centene operates Medicaid health plans through state-based contracts and offers Medicare Advantage, Medicare prescription drug, and Medicare Supplement products through its Wellcare brand.

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