Centene (NYSE:CNC) Given New $28.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley has reduced its price target for Centene from $33.00 to $28.00, maintaining an "equal weight" rating, indicating a potential upside of 5.09% from the stock's current price.
• Centene reported earnings per share of ($0.16), missing analyst estimates of $0.23, despite a revenue increase of 22.4% year-over-year to $48.74 billion.
• Insider trading activity saw Director Theodore R. Samuels II buy 9,000 shares at an average cost of $27.62 per share, increasing his ownership in the company by 39.13%.

Centene (NYSE:CNC - Get Free Report) had its price objective reduced by research analysts at Morgan Stanley from $33.00 to $28.00 in a research note issued on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price target would indicate a potential upside of 5.09% from the company's current price.

Other research analysts also recently issued research reports about the company. Oppenheimer lowered their price target on Centene from $51.00 to $43.00 and set an "outperform" rating on the stock in a report on Monday, July 28th. Cantor Fitzgerald lowered shares of Centene from an "overweight" rating to a "neutral" rating and reduced their price target for the stock from $65.00 to $38.00 in a research report on Monday, July 28th. Guggenheim reiterated a "neutral" rating on shares of Centene in a research report on Tuesday, April 29th. TD Cowen reiterated a "hold" rating and set a $33.00 price objective (down from $73.00) on shares of Centene in a report on Monday, July 21st. Finally, Mizuho dropped their target price on Centene from $71.00 to $40.00 and set a "neutral" rating on the stock in a research report on Friday, July 11th. One investment analyst has rated the stock with a sell rating, fourteen have issued a hold rating and three have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $42.20.

Centene Price Performance

NYSE CNC traded up $0.73 on Monday, reaching $26.64. The company's stock had a trading volume of 4,545,636 shares, compared to its average volume of 8,114,750. The firm's 50 day moving average is $43.39 and its two-hundred day moving average is $54.48. The stock has a market cap of $13.09 billion, a PE ratio of 6.61, a PEG ratio of 1.07 and a beta of 0.40. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.10 and a current ratio of 1.10. Centene has a twelve month low of $25.11 and a twelve month high of $80.59.

Centene (NYSE:CNC - Get Free Report) last announced its 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). The company had revenue of $48.74 billion for 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 firm's revenue for the quarter was up 22.4% on a year-over-year basis. During the same period last year, the firm earned $2.42 earnings per share. As a group, sell-side analysts predict that Centene will post 6.86 EPS for the current year.

Insiders Place Their Bets

In other Centene news, Director Theodore R. Samuels II bought 9,000 shares of the stock in a transaction that occurred on Monday, July 28th. The stock was acquired at an average cost of $27.62 per share, with a total value of $248,580.00. Following the purchase, the director owned 32,000 shares in the company, valued at $883,840. This trade represents a 39.13% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.36% of the stock is owned by insiders.

Hedge Funds Weigh In On Centene

A number of large investors have recently added to or reduced their stakes in the company. Pinney & Scofield Inc. acquired a new stake in Centene in the 4th quarter valued at approximately $25,000. Ameriflex Group Inc. acquired a new stake in Centene in the 4th quarter valued at $26,000. Quarry LP acquired a new position in shares of Centene during the 1st quarter worth about $26,000. Studio Investment Management LLC acquired a new stake in shares of Centene in the fourth quarter valued at about $32,000. Finally, Golden State Wealth Management LLC grew its stake in Centene by 203.1% in the first quarter. Golden State Wealth Management LLC now owns 579 shares of the company's stock valued at $35,000 after purchasing an additional 388 shares in the last quarter. Institutional investors 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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