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

Key Points

• Shares gapped up — Centene opened at $36.79 after a prior close of $35.40 and last traded around $35.79 on volume of about 1.43 million shares.
• Analysts are largely cautious with a consensus rating of Hold and an average target price of $41.81, with most firms issuing Hold and a smaller number giving Buy or Sell ratings.
• Recent results showed a (-$1.19) EPS that narrowly beat estimates and revenue of $49.73 billion (up 21.9% YoY); the company set FY2026 guidance at 3.00 EPS despite a negative trailing P/E of -2.65.

Shares of Centene Corporation (NYSE:CNC - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $35.40, but opened at $36.79. Centene shares last traded at $35.7860, with a volume of 1,427,055 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on CNC. Mizuho set a $41.00 price objective on shares of Centene and gave the stock a "neutral" rating in a research report on Tuesday, March 10th. Wall Street Zen lowered shares of Centene from a "buy" rating to a "hold" rating in a research report on Sunday, February 15th. Argus upgraded shares of Centene to a "hold" rating in a report on Monday, February 9th. Robert W. Baird boosted their target price on shares of Centene from $28.00 to $36.00 and gave the stock a "neutral" rating in a report on Thursday, December 11th. Finally, Cantor Fitzgerald restated a "neutral" rating and set a $41.00 target price on shares of Centene in a report on Monday, February 9th. Three equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $41.81.

Centene Stock Performance

The stock has a market capitalization of $17.80 billion, a price-to-earnings ratio of -2.65, a P/E/G ratio of 0.78 and a beta of 0.59. The company's fifty day simple moving average is $38.98 and its 200 day simple moving average is $38.83. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 0.87.

Centene (NYSE:CNC - Get Free Report) last announced its earnings results on Friday, February 6th. The company reported ($1.19) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.22) by $0.03. Centene had a negative net margin of 3.43% and a positive return on equity of 4.25%. The company had revenue of $49.73 billion during the quarter, compared to analysts' expectations of $48.41 billion. During the same quarter in the previous year, the business posted $0.80 earnings per share. Centene's quarterly revenue was up 21.9% on a year-over-year basis. Centene has set its FY 2026 guidance at 3.000-3.000 EPS. On average, equities research analysts expect that Centene Corporation will post 6.86 earnings per share for the current year.

Institutional Investors Weigh In On Centene

Institutional investors and hedge funds have recently bought and sold shares of the company. UniSuper Management Pty Ltd lifted its holdings in shares of Centene by 66.0% in the third quarter. UniSuper Management Pty Ltd now owns 85,232 shares of the company's stock worth $3,041,000 after acquiring an additional 33,875 shares during the last quarter. Oracle Investment Management Inc. bought a new position in shares of Centene in the third quarter worth about $3,936,000. Packer & Co Ltd bought a new position in shares of Centene in the third quarter worth about $50,487,000. First Citizens Bank & Trust Co. lifted its holdings in shares of Centene by 122.5% in the third quarter. First Citizens Bank & Trust Co. now owns 223,157 shares of the company's stock worth $7,962,000 after acquiring an additional 122,870 shares during the last quarter. Finally, ARGA Investment Management LP bought a new position in shares of Centene in the third quarter worth about $21,485,000. 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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