Centene (NYSE:CNC) Rating Increased to Buy at Bank of America

Centene (NYSE:CNC - Get Free Report) was upgraded by stock analysts at Bank of America from an "underperform" rating to a "buy" rating in a research note issued to investors on Wednesday, Marketbeat reports. The brokerage presently has a $60.00 price target on the stock, up from their prior price target of $34.00. Bank of America's target price points to a potential upside of 21.40% from the company's previous close.

A number of other brokerages have also recently issued reports on CNC. Barclays reaffirmed an "overweight" rating and issued a $63.00 target price on shares of Centene in a report on Wednesday. Morgan Stanley raised their price objective on Centene from $38.00 to $45.00 and gave the company an "equal weight" rating in a research note on Wednesday, March 4th. TD Cowen lifted their price objective on Centene from $34.00 to $38.00 and gave the stock a "hold" rating in a report on Wednesday, February 11th. Raymond James Financial set a $60.00 price target on Centene in a research report on Wednesday. Finally, JPMorgan Chase & Co. cut their price target on Centene from $45.00 to $41.00 and set a "neutral" rating for the company in a research note on Thursday, March 19th. Six investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Centene presently has a consensus rating of "Hold" and a consensus price target of $47.06.

Centene Stock Performance

Shares of CNC stock opened at $49.42 on Wednesday. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.87. Centene has a 12-month low of $25.08 and a 12-month high of $64.15. The company has a market cap of $24.30 billion, a price-to-earnings ratio of -3.63, a price-to-earnings-growth ratio of 0.96 and a beta of 0.59. The stock has a 50 day simple moving average of $38.49 and a 200-day simple moving average of $39.24.

Centene (NYSE:CNC - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The company reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.12 by $1.25. Centene had a positive return on equity of 4.25% and a negative net margin of 3.43%.The firm had revenue of $49.94 billion during the quarter, compared to analysts' expectations of $47.58 billion. During the same quarter in the prior year, the business posted $2.90 earnings per share. Centene's revenue was up 7.1% compared to the same quarter last year. On average, equities analysts forecast that Centene will post 3.01 EPS for the current year.

Institutional Investors Weigh In On Centene

Several hedge funds have recently modified their holdings of CNC. AQR Capital Management LLC lifted its stake in shares of Centene by 117.0% during the fourth quarter. AQR Capital Management LLC now owns 31,798,738 shares of the company's stock valued at $1,308,518,000 after buying an additional 17,143,904 shares during the period. Norges Bank purchased a new position in shares of Centene during the 4th quarter worth $332,044,000. Deerfield Management Company L.P. boosted its holdings in shares of Centene by 184.0% during the third quarter. Deerfield Management Company L.P. now owns 9,046,000 shares of the company's stock worth $322,761,000 after purchasing an additional 5,860,630 shares during the last quarter. 8 Knots Management LLC purchased a new stake in shares of Centene in the third quarter valued at $186,662,000. Finally, Price T Rowe Associates Inc. MD lifted its position in Centene by 52.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,171,568 shares of the company's stock worth $295,111,000 after buying an additional 2,472,341 shares during the period. 93.63% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Centene

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Q1 beat and formal press release — Centene reported strong Q1 results (adjusted EPS $3.37) and raised 2026 GAAP and adjusted EPS guidance, highlighting improved medical-cost management. CENTENE CORPORATION REPORTS FIRST QUARTER 2026 RESULTS
• Positive Sentiment: Company highlights cost controls and higher 2026 profit view — Reuters reports Centene raised its 2026 adjusted-profit forecast, attributing the outlook lift to better control of elevated medical costs. Centene sees higher 2026 profit on improving cost controls
• Positive Sentiment: Medicaid performance strength — Coverage mix and Medicaid HBR improvements helped the beat and were cited by multiple outlets as a primary earnings driver. Centene Stock Jumps With Medicaid Strength, But Commercial Enrollment Slide Persists
• Positive Sentiment: Unusual bullish options flow — Large uptick in call option volume suggests some traders positioned for further upside (institutional / speculator interest in the print).
• Neutral Sentiment: Earnings call coverage & transcript — Full call transcript and summaries are available; the company beat but management struck a cautious tone on some factors. Centene Earnings Call: Big EPS Beat, Cautious Outlook
• Neutral Sentiment: Market commentary / audio mentions — Centene appeared in roundups (Bloomberg) as a notable mover after the print. Stock Movers: Oracle, UPS, Centene
• Negative Sentiment: Enrollment declines remain a headwind — Commercial membership slides and a reported ~2M drop in individual ACA enrollment after subsidy changes are longer-term challenges for revenue mix and margin stability. Centene's Obamacare Enrollment Drops By 2 Million After Congress Strips Subsidies
• Negative Sentiment: Mixed analyst/ownership signals and insider sales — Recent analyst ratings and large institutional rebalancings are mixed; some insiders have sold shares, which can temper enthusiasm. Centene shares rise as investors position ahead of earnings and recent guidance reaffirmation

About Centene

Centene Corporation NYSE: CNC is a diversified, multi-national healthcare enterprise that specializes in providing services to government-sponsored and national health programs. The company primarily acts as a managed care organization, delivering healthcare coverage and administering benefits for Medicaid, the Children's Health Insurance Program (CHIP), Medicare Advantage, and individual marketplace plans. Centene also contracts with federal and state agencies to manage specialty care programs and community-based services for vulnerable populations.

Centene's offerings extend beyond traditional insurance to include a range of specialty and support services.

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