Centene Corporation (NYSE:CNC) Sees Significant Drop in Short Interest

Key Points

• Centene Corporation experienced a significant drop in short interest, with a decline of 31.2% in September, bringing the total to 13,470,000 shares or 2.8% of its stock sold short.
• Recent insider trading shows CEO Sarah London purchased 19,230 shares at $25.50 each, increasing her ownership by 2.33%.
• Analysts have mixed views on Centene, with price targets ranging from $30.00 to $39.50 as the stock holds a current average rating of "Hold".

Centene Corporation (NYSE:CNC - Get Free Report) was the recipient of a significant decline in short interest during the month of September. As of September 30th, there was short interest totaling 13,470,000 shares, a decline of 31.2% from the September 15th total of 19,580,000 shares. Currently, 2.8% of the company's stock are sold short. Based on an average daily trading volume, of 16,010,000 shares, the days-to-cover ratio is currently 0.8 days. Based on an average daily trading volume, of 16,010,000 shares, the days-to-cover ratio is currently 0.8 days. Currently, 2.8% of the company's stock are sold short.

Insider Activity at Centene

In related news, CEO Sarah London bought 19,230 shares of the stock in a transaction dated Friday, August 8th. The stock was bought at an average cost of $25.50 per share, with a total value of $490,365.00. Following the completion of the acquisition, the chief executive officer owned 845,275 shares of the company's stock, valued at $21,554,512.50. This trade represents a 2.33% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Theodore R. Samuels II bought 9,000 shares of the stock in a transaction dated Monday, July 28th. The shares were bought at an average cost of $27.62 per share, with a total value of $248,580.00. Following the completion of the acquisition, the director directly owned 32,000 shares of the company's stock, valued at approximately $883,840. The trade was a 39.13% increase in their position. The disclosure for this purchase can be found here. 0.36% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Centene

Institutional investors and hedge funds have recently modified their holdings of the stock. Polianta Ltd acquired a new stake in shares of Centene during the 2nd quarter valued at $1,253,000. Oliver Luxxe Assets LLC acquired a new stake in shares of Centene during the 2nd quarter valued at $4,033,000. Focus Partners Wealth lifted its holdings in shares of Centene by 83.1% in the first quarter. Focus Partners Wealth now owns 42,270 shares of the company's stock valued at $2,566,000 after purchasing an additional 19,181 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Centene by 3.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,810,489 shares of the company's stock valued at $292,045,000 after purchasing an additional 143,573 shares in the last quarter. Finally, Sapient Capital LLC purchased a new stake in shares of Centene in the second quarter valued at $493,000. Institutional investors and hedge funds own 93.63% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Weiss Ratings reiterated a "sell (d)" rating on shares of Centene in a research report on Wednesday, October 8th. Barclays boosted their price objective on Centene from $33.00 to $35.00 and gave the stock an "equal weight" rating in a research report on Friday, September 12th. JPMorgan Chase & Co. reduced their price objective on Centene from $48.00 to $30.00 and set a "neutral" rating for the company in a research report on Tuesday, July 29th. UBS Group reduced their price objective on Centene from $45.00 to $31.00 and set a "neutral" rating for the company in a research report on Monday, July 28th. Finally, Morgan Stanley boosted their price objective on Centene from $28.00 to $38.00 and gave the stock an "equal weight" rating in a research report on Tuesday, October 14th. Three equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, Centene presently has an average rating of "Hold" and an average target price of $39.50.

Centene Stock Performance

Shares of NYSE CNC opened at $36.00 on Thursday. The stock has a fifty day moving average price of $32.75 and a two-hundred day moving average price of $43.22. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.10 and a current ratio of 1.10. The firm has a market cap of $17.68 billion, a P/E ratio of 8.91, a PEG ratio of 1.42 and a beta of 0.48. Centene has a 1 year low of $25.08 and a 1 year high of $70.11.

Centene (NYSE:CNC - Get Free Report) last issued its quarterly earnings results on Friday, July 25th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.23 by ($0.39). Centene had a net margin of 1.15% and a return on equity of 9.57%. The firm had revenue of $48.74 billion for the quarter, compared to the consensus estimate of $44.71 billion. During the same period in the previous year, the business posted $2.42 earnings per share. The business's revenue for the quarter was up 22.4% compared to the same quarter last year. Centene has set its FY 2025 guidance at 1.750-1.750 EPS. Research analysts forecast that Centene will post 6.86 EPS for the current fiscal year.

About Centene

Centene Corporation operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, commercial organizations, and military families in the United States. The company operates through Medicaid, Medicare, Commercial, and Other segments. The Medicaid segment offers health plan coverage, including medicaid expansion, aged, blind, disabled, children's health insurance program, foster care, medicare-medicaid plans, long-term services and support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.