Centene (NYSE:CNC) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Centene to a "Buy" rating, joining several brokers that raised price targets (Truist/Oppenheimer/Raymond James); however the consensus remains "Hold" with an average target of $52.12.
• Centene beat Q1 expectations, reporting EPS of $3.37 versus $2.23 forecast and revenue of $49.94B versus $47.53B, and said results support margin improvement and an improved outlook.
• Analyst opinions are mixed (6 Buy, 11 Hold, 2 Sell) while institutional investors own about 93.63% of the stock; the company has a market cap of ~$26.4B and a negative P/E of -4.06.

Centene (NYSE:CNC - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

A number of other brokerages have also issued reports on CNC. Truist Financial raised their target price on shares of Centene from $49.00 to $58.00 and gave the stock a "buy" rating in a research report on Wednesday. Argus upgraded shares of Centene to a "hold" rating in a research report on Monday, February 9th. Jefferies Financial Group raised their target price on shares of Centene from $39.00 to $48.00 and gave the stock a "hold" rating in a research report on Wednesday. Oppenheimer restated an "outperform" rating and set a $58.00 target price (up from $45.00) on shares of Centene in a research report on Wednesday. Finally, Raymond James Financial set a $60.00 target price on shares of Centene in a research report on Wednesday. Six investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Centene currently has a consensus rating of "Hold" and an average target price of $52.12.

Centene Trading Down 0.6%

Shares of CNC opened at $53.37 on Friday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.12 and a quick ratio of 1.10. The firm has a 50 day simple moving average of $38.91 and a 200-day simple moving average of $39.45. Centene has a 1-year low of $25.08 and a 1-year high of $64.15. The stock has a market cap of $26.36 billion, a price-to-earnings ratio of -4.06, a price-to-earnings-growth ratio of 1.03 and a beta of 1.06.

Centene (NYSE:CNC - Get Free Report) last announced its earnings results on Tuesday, April 28th. The company reported $3.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $1.14. Centene had a negative net margin of 3.25% and a positive return on equity of 5.57%. The firm had revenue of $49.94 billion for the quarter, compared to analyst estimates of $47.53 billion. During the same quarter last year, the business earned $2.90 earnings per share. Centene's revenue was up 7.1% compared to the same quarter last year. Equities analysts forecast that Centene will post 3.46 EPS for the current fiscal year.

Institutional Investors Weigh In On Centene

A number of institutional investors have recently added to or reduced their stakes in CNC. Addison Advisors LLC grew its position in Centene by 455.6% during the third quarter. Addison Advisors LLC now owns 739 shares of the company's stock valued at $26,000 after acquiring an additional 606 shares during the period. DV Equities LLC purchased a new stake in Centene during the fourth quarter valued at about $26,000. Mowery & Schoenfeld Wealth Management LLC purchased a new stake in Centene during the third quarter valued at about $27,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of Centene in the fourth quarter worth $28,000. Finally, SBI Securities Co. Ltd. increased its position in shares of Centene by 118.4% in the fourth quarter. SBI Securities Co. Ltd. now owns 749 shares of the company's stock worth $31,000 after acquiring an additional 406 shares in the last quarter. Hedge funds and other institutional investors own 93.63% of the company's stock.

Centene News Roundup

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Q1 results beat expectations: Centene reported stronger-than-expected EPS and raised its outlook, which supports margin improvement narratives that helped multiple brokers upgrade or re-assess the name. Read More.
• Positive Sentiment: Wall Street bullish notes: Truist reiterated a Buy rating and Cantor Fitzgerald upgraded the stock, signaling investor confidence from some major brokers. Read More. Read More.
• Positive Sentiment: Longer-term recovery thesis boosted: A Seeking Alpha piece highlights promising 2027 turnaround prospects and potential momentum reversal—supportive for investors focused on multi‑year recovery. Read More.
• Positive Sentiment: Wells Fargo raised its price target to $56 while keeping an Equal Weight view, indicating some upside in the broker community even as conviction is measured. Read More.
• Neutral Sentiment: Broker PTs raised but ratings cautious: Deutsche Bank, Mizuho and Morgan Stanley all lifted targets (to $53, $50 and $50 respectively) but maintained Hold/Neutral/Equal Weight stances — a modest vote of confidence that stops short of strong endorsement. Read More. Read More. Read More.
• Neutral Sentiment: Analysts’ opinions remain mixed overall — coverage notes a blend of upgrades and cautious takes, keeping sentiment balanced rather than uniformly positive. Read More.
• Negative Sentiment: Lower consensus price target: A brokerage consensus report shows a $42 average target — well below current levels — which could cap upside if that view gains traction. Read More.
• Negative Sentiment: Execution concerns flagged: A Seeking Alpha commentary warns that further upside will require better operational execution, a caution investors may lean on after recent volatility. Read More.

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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