Centene (NYSE:CNC) Releases 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 earnings per share guidance of 1.750-1.750 for the period, compared to the consensus earnings per share estimate of 1.630. The company issued revenue guidance of -.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CNC. Oppenheimer reduced their price objective on Centene from $51.00 to $43.00 and set an "outperform" rating on the stock in a research note on Monday, July 28th. Mizuho cut their target price on Centene from $71.00 to $40.00 and set a "neutral" rating on the stock in a research note on Friday, July 11th. UBS Group cut their target price on Centene from $45.00 to $31.00 and set a "neutral" rating on the stock in a research note on Monday, July 28th. TD Cowen reiterated a "hold" rating and issued a $33.00 price target (down previously from $73.00) on shares of Centene in a report on Monday, July 21st. Finally, Bank of America lowered Centene from a "neutral" rating to an "underperform" rating and lowered their price target for the company from $52.00 to $30.00 in a report on Wednesday, July 16th. Three research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Centene currently has a consensus rating of "Hold" and an average target price of $38.33.

Centene Stock Down 2.6%

Centene stock opened at $33.20 on Friday. The business has a fifty day moving average of $28.74 and a two-hundred day moving average of $47.89. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 0.64. The firm has a market cap of $16.31 billion, a P/E ratio of 8.22, a P/E/G ratio of 1.39 and a beta of 0.44. Centene has a twelve month low of $25.08 and a twelve month high of $77.29.

Centene (NYSE:CNC - Get Free Report) last issued its quarterly earnings data on Friday, July 25th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of $0.23 by ($0.39). Centene had a net margin of 1.15% and a return on equity of 9.57%. The business had revenue of $48.74 billion for the quarter, compared to analysts' expectations of $44.71 billion. During the same quarter in the prior year, the company posted $2.42 EPS. The business's revenue for the quarter was up 22.4% on a year-over-year basis. Centene has set its FY 2025 guidance at 1.750-1.750 EPS. On average, analysts forecast that Centene will post 6.86 earnings per share for the current fiscal year.

Insider Buying and Selling at Centene

In other news, Director Theodore R. Samuels II bought 9,000 shares of the business's stock in a transaction that occurred on Monday, July 28th. The shares were purchased at an average cost of $27.62 per share, with a total value of $248,580.00. Following the transaction, the director directly owned 32,000 shares in the company, 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 accessible through the SEC website. Also, CEO Sarah London bought 19,230 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was purchased at an average cost of $25.50 per share, for a total transaction of $490,365.00. Following the completion of the transaction, the chief executive officer owned 845,275 shares in the company, valued at $21,554,512.50. This trade 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

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ameriprise Financial Inc. grew its position in Centene by 0.4% during the 2nd quarter. Ameriprise Financial Inc. now owns 5,409,000 shares of the company's stock worth $293,587,000 after purchasing an additional 19,140 shares during the period. Man Group plc boosted its stake in shares of Centene by 8.5% during the 2nd quarter. Man Group plc now owns 2,249,160 shares of the company's stock worth $122,084,000 after acquiring an additional 176,926 shares in the last quarter. Canada Pension Plan Investment Board boosted its stake in shares of Centene by 23.3% during the 2nd quarter. Canada Pension Plan Investment Board now owns 1,286,234 shares of the company's stock worth $69,817,000 after acquiring an additional 243,211 shares in the last quarter. Worldquant Millennium Advisors LLC purchased a new stake in shares of Centene during the 2nd quarter worth about $65,105,000. Finally, Alliancebernstein L.P. boosted its stake in shares of Centene by 3.7% during the 2nd quarter. Alliancebernstein L.P. now owns 737,104 shares of the company's stock worth $40,010,000 after acquiring an additional 25,964 shares in the last quarter. 93.63% of the stock is owned by institutional investors and hedge funds.

Centene Company Profile

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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