Centene (NYSE:CNC) Updates FY 2025 Earnings Guidance

Key Points

• Centene Corporation updated its FY 2025 earnings guidance, expecting earnings per share of 1.750, exceeding the consensus estimate of 1.630.
• Several brokerages have downgraded Centene's stock price targets, with Oppenheimer reducing it from $51.00 to $43.00 and Bank of America from $52.00 to $30.00.
• Insider buying activity has been noted with Director Theodore R. Samuels II purchasing 9,000 shares and CEO Sarah London acquiring 19,230 shares in recent transactions.

Centene (NYSE:CNC - Get Free Report) updated its FY 2025 earnings guidance on Saturday. The company provided EPS guidance of 1.750-1.750 for the period, compared to the consensus EPS estimate of 1.630. The company issued revenue guidance of -.

Centene Trading Up 0.6%

CNC stock traded up $0.20 during midday trading on Thursday, hitting $32.22. The company had a trading volume of 3,910,180 shares, compared to its average volume of 9,228,462. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.64. Centene has a 52 week low of $25.08 and a 52 week high of $77.17. The stock's 50 day moving average price is $28.70 and its 200 day moving average price is $47.36. The stock has a market cap of $15.82 billion, a price-to-earnings ratio of 7.97, a PEG ratio of 1.29 and a beta of 0.44.

Centene (NYSE:CNC - Get Free Report) last announced its quarterly earnings results on Friday, July 25th. The company reported ($0.16) EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.39). Centene had a return on equity of 9.57% and a net margin of 1.15%.The business had revenue of $48.74 billion during the quarter, compared to analysts' expectations of $44.71 billion. During the same period in the previous year, the business earned $2.42 EPS. The business's revenue was up 22.4% compared to the same quarter last year. Centene has set its FY 2025 guidance at 1.750-1.750 EPS. As a group, equities research analysts expect that Centene will post 6.86 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. TD Cowen reissued a "hold" rating and issued a $33.00 target price (down from $73.00) on shares of Centene in a report on Monday, July 21st. Wells Fargo & Company downgraded Centene from an "overweight" rating to an "equal weight" rating and dropped their target price for the stock from $72.00 to $30.00 in a report on Wednesday, July 23rd. UBS Group lowered their price target on Centene from $45.00 to $31.00 and set a "neutral" rating on the stock in a report on Monday, July 28th. Barclays upped their price target on Centene from $33.00 to $35.00 and gave the company an "equal weight" rating in a report on Friday, September 12th. Finally, JPMorgan Chase & Co. lowered their price target on Centene from $48.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, July 29th. Three equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Centene has a consensus rating of "Hold" and a consensus price target of $38.33.

Insider Activity at Centene

In other news, Director Theodore R. Samuels II acquired 9,000 shares of the firm's stock in a transaction dated Monday, July 28th. The shares were acquired at an average cost of $27.62 per share, with a total value of $248,580.00. Following the acquisition, the director directly owned 32,000 shares of the company's stock, valued at approximately $883,840. The trade was a 39.13% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Sarah London acquired 19,230 shares of the firm's stock in a transaction dated Friday, August 8th. The shares were purchased at an average cost of $25.50 per share, for a total transaction of $490,365.00. Following the completion of the acquisition, the chief executive officer directly owned 845,275 shares in the company, valued at approximately $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. 0.36% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Centene

Institutional investors have recently modified their holdings of the stock. Advisory Services Network LLC lifted its stake in shares of Centene by 352.6% in the 2nd quarter. Advisory Services Network LLC now owns 16,747 shares of the company's stock valued at $909,000 after purchasing an additional 13,047 shares during the last quarter. Scott Marsh Financial LLC bought a new stake in shares of Centene in the 2nd quarter valued at approximately $904,000. Boothbay Fund Management LLC bought a new stake in shares of Centene in the 2nd quarter valued at approximately $878,000. Vident Advisory LLC lifted its stake in shares of Centene by 20.7% in the 2nd quarter. Vident Advisory LLC now owns 11,973 shares of the company's stock valued at $650,000 after purchasing an additional 2,051 shares during the last quarter. Finally, Caxton Associates LLP lifted its stake in shares of Centene by 21.4% in the 2nd quarter. Caxton Associates LLP now owns 7,291 shares of the company's stock valued at $396,000 after purchasing an additional 1,283 shares during the last quarter. 93.63% of the stock is owned by institutional investors.

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.