Centene (NYSE:CNC) Shares Gap Down - Time to Sell?

Key Points

• Centene shares gapped down at the open, falling from a prior close of $68.72 to $66.96 and last trading around $66.54, down about 2.6% on the day.
• Analyst sentiment is mixed: Cantor Fitzgerald and Oppenheimer raised their price targets and kept bullish ratings, while Goldman Sachs reiterated a sell rating. Overall, MarketBeat shows a consensus Hold with an average target price of $64.61.
• Despite the stock weakness, Centene’s latest earnings beat expectations, with quarterly EPS of $3.37 versus $2.23 expected and revenue of $49.94 billion topping estimates. The company also reported 7.1% year-over-year revenue growth.

Centene Corporation (NYSE:CNC - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $68.72, but opened at $66.96. Centene shares last traded at $66.5440, with a volume of 446,260 shares trading hands.

Analysts Set New Price Targets

CNC has been the topic of a number of research analyst reports. Cantor Fitzgerald boosted their price target on Centene from $60.00 to $75.00 and gave the company an "overweight" rating in a report on Tuesday, July 7th. Oppenheimer increased their price objective on Centene from $58.00 to $67.00 and gave the stock an "outperform" rating in a report on Wednesday, May 27th. Zacks Research cut Centene from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. The Goldman Sachs Group restated a "sell" rating and set a $40.00 target price on shares of Centene in a report on Wednesday, April 29th. Finally, TD Cowen reaffirmed a "hold" rating and issued a $65.00 price target (up from $47.00) on shares of Centene in a research note on Tuesday. Seven research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $64.61.

Centene Stock Down 2.6%

The company's fifty day simple moving average is $62.14 and its 200 day simple moving average is $48.37. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.76. The firm has a market capitalization of $33.04 billion, a PE ratio of -5.09, a price-to-earnings-growth ratio of 0.53 and a beta of 1.07.

Centene (NYSE:CNC - Get Free Report) last posted its earnings results on Tuesday, April 28th. The company reported $3.37 earnings per share for the quarter, topping analysts' consensus estimates of $2.23 by $1.14. The firm had revenue of $49.94 billion for the quarter, compared to the consensus estimate of $47.53 billion. Centene had a positive return on equity of 5.57% and a negative net margin of 3.25%.The business's revenue for the quarter was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.90 EPS. Analysts anticipate that Centene Corporation will post 3.44 earnings per share for the current fiscal year.

Institutional Trading of Centene

Hedge funds have recently modified their holdings of the business. Baird Financial Group Inc. bought a new stake in Centene during the first quarter worth about $236,000. Sivia Capital Partners LLC lifted its holdings in shares of Centene by 80.0% during the second quarter. Sivia Capital Partners LLC now owns 9,710 shares of the company's stock valued at $527,000 after purchasing an additional 4,315 shares during the last quarter. CW Advisors LLC lifted its holdings in shares of Centene by 20.3% during the second quarter. CW Advisors LLC now owns 4,863 shares of the company's stock valued at $264,000 after purchasing an additional 820 shares during the last quarter. NewEdge Advisors LLC boosted its position in shares of Centene by 6.1% in the 2nd quarter. NewEdge Advisors LLC now owns 44,945 shares of the company's stock worth $2,440,000 after purchasing an additional 2,582 shares in the last quarter. Finally, Treasurer of the State of North Carolina grew its stake in shares of Centene by 0.4% in the 2nd quarter. Treasurer of the State of North Carolina now owns 231,938 shares of the company's stock worth $12,590,000 after buying an additional 967 shares during the last quarter. Institutional investors own 93.63% of the company's stock.

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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