Centene (NYSE:CNC) Shares Gap Up - Should You Buy?

Key Points

• Centene shares gapped up significantly, opening at $35.97 after closing at $31.27, with a trading volume of 8,890,153 shares.
• Recent analyst ratings show a consensus of "Hold" with a reduced average price target of $37.93, down from previous estimates, indicating potential caution among investors.
• The company reported earnings of ($0.16) per share for the last quarter, missing the consensus estimate significantly, despite a 22.4% year-over-year revenue increase to $48.74 billion.

Shares of Centene Corporation (NYSE:CNC - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $31.27, but opened at $35.97. Centene shares last traded at $34.97, with a volume of 8,890,153 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Truist Financial lowered their price objective on shares of Centene from $42.00 to $35.00 and set a "buy" rating for the company in a research note on Monday, July 28th. TD Cowen restated a "hold" rating and set a $33.00 price target (down from $73.00) on shares of Centene in a research report on Monday, July 21st. Morgan Stanley decreased their target price on shares of Centene from $33.00 to $28.00 and set an "equal weight" rating on the stock in a report on Monday, August 4th. Robert W. Baird decreased their target price on shares of Centene from $68.00 to $28.00 and set a "neutral" rating on the stock in a report on Friday, July 25th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Centene from $48.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, July 29th. Three investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $37.93.

Centene Price Performance

The stock's fifty day moving average price is $28.73 and its 200-day moving average price is $48.26. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.10 and a current ratio of 1.10. The firm has a market cap of $17.35 billion, a PE ratio of 8.74, a P/E/G ratio of 1.26 and a beta of 0.44.

Centene (NYSE:CNC - Get Free Report) last released its quarterly earnings results on Friday, July 25th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.39). Centene had a return on equity of 9.57% and a net margin of 1.15%.The firm had revenue of $48.74 billion for the quarter, compared to analyst estimates of $44.71 billion. During the same period in the prior year, the business earned $2.42 earnings per share. Centene'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. As a group, equities analysts forecast that Centene Corporation will post 6.86 EPS for the current fiscal year.

Insider Buying and Selling at Centene

In other news, CEO Sarah London acquired 19,230 shares of Centene stock in a transaction on Friday, August 8th. The stock was bought at an average cost of $25.50 per share, with a total value of $490,365.00. Following the completion of the purchase, the chief executive officer owned 845,275 shares of the company's stock, valued at $21,554,512.50. This represents a 2.33% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Theodore R. Samuels II acquired 9,000 shares of Centene stock in a transaction 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 completion of the purchase, the director directly owned 32,000 shares of the company's stock, valued at approximately $883,840. This represents a 39.13% increase in their position. The disclosure for this purchase can be found here. 0.36% of the stock is owned by insiders.

Institutional Investors Weigh In On Centene

Several large investors have recently made changes to their positions in the company. Ameriflex Group Inc. acquired a new position in Centene in the fourth quarter worth approximately $26,000. Pinney & Scofield Inc. acquired a new position in shares of Centene in the fourth quarter valued at $25,000. Quarry LP acquired a new position in Centene during the first quarter worth $26,000. Studio Investment Management LLC acquired a new position in Centene during the fourth quarter worth $32,000. Finally, Golden State Wealth Management LLC raised its stake in Centene by 203.1% during the first quarter. Golden State Wealth Management LLC now owns 579 shares of the company's stock worth $35,000 after acquiring an additional 388 shares in the last quarter. Institutional investors own 93.63% of the company's stock.

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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