Centene (NYSE:CNC) Sets New 1-Year Low Following Analyst Downgrade

Key Points

• Centene Corporation reached a new 52-week low of $25.86 after UBS Group downgraded the stock's price target from $45.00 to $31.00, while maintaining a neutral rating.
• Other analysts, including Cantor Fitzgerald and TD Cowen, have also lowered their ratings and price targets, with the consensus now at a hold rating and a price target of $46.44.
• Centene reported earnings that missed consensus estimates, with a net margin of only 1.15% and revenue of $48.74 billion, indicating potential issues in profitability despite revenue growth.

Centene Corporation (NYSE:CNC - Get Free Report) shares reached a new 52-week low on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $48.00 to $30.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Centene traded as low as $25.86 and last traded at $26.34, with a volume of 2836937 shares trading hands. The stock had previously closed at $26.86.

A number of other research firms have also issued reports on CNC. UBS Group cut their price target on shares of Centene from $45.00 to $31.00 and set a "neutral" rating on the stock in a report on Monday. Barclays cut their price target on shares of Centene from $65.00 to $45.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 2nd. Jefferies Financial Group decreased their price objective on Centene from $64.00 to $61.00 and set a "hold" rating for the company in a research report on Tuesday, April 29th. Guggenheim restated a "neutral" rating on shares of Centene in a research report on Tuesday, April 29th. Finally, Oppenheimer dropped their price objective on shares of Centene from $51.00 to $43.00 and set an "outperform" rating on the stock in a research note on Monday. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $45.31.

Insider Activity

In other news, Director Theodore R. Samuels II acquired 9,000 shares of the firm's 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 acquisition, the director owned 32,000 shares in the company, valued at approximately $883,840. This represents a 39.13% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.36% of the company's stock.

Institutional Trading of Centene

Several large investors have recently modified their holdings of CNC. LPL Financial LLC boosted its holdings in Centene by 85.6% in the 4th quarter. LPL Financial LLC now owns 216,928 shares of the company's stock valued at $13,142,000 after purchasing an additional 100,039 shares during the period. Brown Brothers Harriman & Co. acquired a new position in shares of Centene in the 4th quarter valued at $47,000. Allstate Corp acquired a new position in shares of Centene in the 4th quarter valued at $951,000. Allianz SE acquired a new position in shares of Centene in the 4th quarter valued at $190,000. Finally, CIBC Private Wealth Group LLC raised its stake in shares of Centene by 45.1% in the 4th quarter. CIBC Private Wealth Group LLC now owns 9,242 shares of the company's stock valued at $584,000 after buying an additional 2,871 shares in the last quarter. 93.63% of the stock is owned by institutional investors.

Centene Trading Up 1.1%

The company has a market cap of $12.67 billion, a price-to-earnings ratio of 6.39, a PEG ratio of 0.99 and a beta of 0.44. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.11 and a current ratio of 1.10. The business's 50 day moving average price is $44.64 and its 200-day moving average price is $55.11.

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 analysts' consensus estimates of $0.23 by ($0.39). The business had revenue of $48.74 billion during the quarter, compared to analyst estimates of $44.71 billion. Centene had a net margin of 1.15% and a return on equity of 9.57%. The company's quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.42 EPS. On average, research analysts forecast that Centene Corporation will post 6.86 EPS for the current 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.