Zacks Research Downgrades Centene (NYSE:CNC) to Hold

Key Points

• Zacks Research downgraded Centene from “strong buy” to “hold,” aligning with the broader consensus rating of “hold.” Analysts’ average price target is $70.05.
• Centene reported stronger-than-expected quarterly results, with earnings per share of $2.51 versus the $1.09 consensus estimate and revenue of $53.58 billion, up 9.9% year over year.
• The stock opened at $64.64, near its 12-month high of $69.63. Institutional investors own 93.63% of Centene, while the company disclosed a sizable share sale by its general counsel.

Centene (NYSE:CNC - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday, Zacks reports.

Other research analysts have also recently issued reports about the company. HC Wainwright reiterated a "buy" rating on shares of Centene in a research report on Friday, September 11th. Wells Fargo & Company set a $69.00 target price on shares of Centene and gave the company an "equal weight" rating in a research note on Monday, July 13th. JPMorgan Chase & Co. lifted their price objective on shares of Centene from $60.00 to $67.00 and gave the company a "neutral" rating in a report on Tuesday, August 4th. Sanford C. Bernstein reissued an "outperform" rating and set a $79.00 target price (up from $68.00) on shares of Centene in a research note on Monday, August 3rd. Finally, Stifel Nicolaus set a $79.00 target price on Centene in a research report on Monday, August 3rd. Nine research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $70.05.

Centene Stock Performance

CNC opened at $64.64 on Monday. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.71. Centene has a 12-month low of $31.63 and a 12-month high of $69.63. The firm has a 50 day moving average of $64.79 and a two-hundred day moving average of $57.93. The firm has a market capitalization of $31.93 billion, a PE ratio of -6.19, a P/E/G ratio of 0.41 and a beta of 1.13.

Centene (NYSE:CNC - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The company reported $2.51 earnings per share for the quarter, topping analysts' consensus estimates of $1.09 by $1.42. Centene had a negative net margin of 2.51% and a positive return on equity of 12.12%. The firm had revenue of $53.58 billion for the quarter, compared to analyst estimates of $47.64 billion. During the same quarter in the prior year, the business earned ($0.16) earnings per share. The business's quarterly revenue was up 9.9% compared to the same quarter last year. On average, analysts anticipate that Centene will post 4.89 EPS for the current year.

Insider Transactions at Centene

In other news, General Counsel Christopher Koster sold 56,500 shares of Centene stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $66.90, for a total value of $3,779,850.00. Following the sale, the general counsel owned 248,854 shares in the company, valued at $16,648,332.60. This trade represents a 18.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.37% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Centene

Several institutional investors have recently bought and sold shares of CNC. Deutsche Bank AG acquired a new stake in Centene in the 2nd quarter valued at about $257,279,000. Hara Capital LLC acquired a new position in shares of Centene during the 2nd quarter worth approximately $5,222,000. Paralel Advisors LLC purchased a new stake in shares of Centene in the second quarter valued at approximately $4,531,000. Roberts Glore & Co. Inc. IL purchased a new position in Centene during the second quarter worth approximately $1,659,000. Finally, GSA Capital Partners LLP acquired a new position in shares of Centene during the 2nd quarter valued at about $2,134,000. 93.63% of the stock is currently owned by institutional investors and hedge funds.

About Centene

Centene Corporation NYSE: CNC is a healthcare enterprise that provides health insurance and related services, primarily through government-sponsored programs. Its offerings include Medicaid plans, Medicare products, health plans sold through the Affordable Care Act marketplace, and services for military families through government-sponsored healthcare programs.

The company also provides pharmacy, behavioral health, specialty healthcare, care management and administrative services through various subsidiaries and partner organizations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.