Centene Corporation (NYSE:CNC) Short Interest Up 106.7% in July

Key Points

• Centene Corporation's short interest rose by 106.7% in July, with 27,780,000 shares sold short, representing 5.7% of its total shares.
• The company reported disappointing quarterly earnings, with an EPS of (0.16), missing the consensus estimate of 0.23, despite achieving revenues of $48.74 billion.
• Analysts have lowered their target prices for Centene, with estimates ranging from $28.00 to $43.00, reflecting a consensus rating of "Hold".

Centene Corporation (NYSE:CNC - Get Free Report) was the recipient of a large growth in short interest in July. As of July 31st, there was short interest totaling 27,780,000 shares, agrowthof106.7% from the July 15th total of 13,440,000 shares. Currently,5.7% of the shares of the stock are sold short. Based on an average daily trading volume, of 13,150,000 shares, the short-interest ratio is presently 2.1 days. Based on an average daily trading volume, of 13,150,000 shares, the short-interest ratio is presently 2.1 days. Currently,5.7% of the shares of the stock are sold short.

Analyst Ratings Changes

CNC has been the subject of several research reports. Cantor Fitzgerald lowered shares of Centene from an "overweight" rating to a "neutral" rating and reduced their price objective for the company from $65.00 to $38.00 in a research report on Monday, July 28th. Oppenheimer decreased their target price on shares of Centene from $51.00 to $43.00 and set an "outperform" rating for the company in a report on Monday, July 28th. Truist Financial decreased their target price on shares of Centene from $42.00 to $35.00 and set a "buy" rating for the company in a report on Monday, July 28th. Morgan Stanley decreased their target price on shares of Centene from $33.00 to $28.00 and set an "equal weight" rating for the company in a report on Monday, August 4th. Finally, Robert W. Baird decreased their target price on shares of Centene from $68.00 to $28.00 and set a "neutral" rating for the company in a report on Friday, July 25th. One investment analyst has rated the stock with a sell rating, fourteen have given a hold rating and three have given a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $42.20.

Centene Stock Performance

CNC stock traded up $1.57 during midday trading on Friday, hitting $28.50. 19,596,548 shares of the company traded hands, compared to its average volume of 21,570,596. Centene has a twelve month low of $25.08 and a twelve month high of $80.59. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 0.64. The business has a 50 day simple moving average of $37.47 and a 200-day simple moving average of $51.92. The stock has a market capitalization of $14.00 billion, a price-to-earnings ratio of 7.05, a price-to-earnings-growth ratio of 1.17 and a beta of 0.40.

Centene (NYSE:CNC - Get Free Report) last announced its quarterly earnings data on Friday, July 25th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.39). The company had revenue of $48.74 billion during the quarter, compared to analyst estimates of $44.71 billion. Centene had a return on equity of 9.57% and a net margin of 1.15%. The company's revenue was up 22.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.42 EPS. As a group, equities research analysts predict that Centene will post 6.86 earnings per share for the current year.

Insider Transactions at Centene

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

Institutional Investors Weigh In On Centene

Several hedge funds and other institutional investors have recently modified their holdings of CNC. Pinney & Scofield Inc. acquired a new stake in Centene during the fourth quarter worth $25,000. Ameriflex Group Inc. acquired a new stake in Centene during the fourth quarter worth $26,000. Quarry LP acquired a new stake in Centene during the first quarter worth $26,000. Studio Investment Management LLC acquired a new stake in Centene during the fourth quarter worth $32,000. Finally, Golden State Wealth Management LLC boosted its stake in Centene by 203.1% during the first quarter. Golden State Wealth Management LLC now owns 579 shares of the company's stock worth $35,000 after buying an additional 388 shares in the last quarter. Institutional investors and hedge funds own 93.63% of the company's stock.

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.

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