Centene (NYSE:CNC) Trading Down 10.3% - What's Next?

Key Points

• Centene shares fell 10.3% on Tuesday to about $38.87 (intraday low $37.62) on roughly 3.9 million shares traded, about 36% below the stock's average daily volume.
• Analyst sentiment is mixed with a consensus rating of "Hold" and an average target of $42.44 (3 Buy / 14 Hold / 3 Sell), while recent target moves include Jefferies cutting to $37 and Morgan Stanley raising to $45.
• Recent results showed a slight EPS beat (‑$1.19 vs. ‑$1.22 estimate) and revenue of $49.73 billion, up 21.9% year-over-year, with Centene guiding FY2026 EPS of 3.00 versus analyst forecasts materially higher (consensus ~6.86).

Centene Corporation (NYSE:CNC - Get Free Report)'s stock price was down 10.3% on Tuesday . The stock traded as low as $37.62 and last traded at $38.8740. Approximately 3,898,219 shares traded hands during trading, a decline of 36% from the average daily volume of 6,070,513 shares. The stock had previously closed at $43.32.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on CNC shares. Jefferies Financial Group dropped their target price on shares of Centene from $43.00 to $37.00 and set a "hold" rating on the stock in a research report on Friday, February 13th. Wall Street Zen downgraded shares of Centene from a "buy" rating to a "hold" rating in a research note on Sunday, February 15th. Robert W. Baird lifted their target price on Centene from $28.00 to $36.00 and gave the stock a "neutral" rating in a research report on Thursday, December 11th. TD Cowen boosted their target price on Centene from $34.00 to $38.00 and gave the company a "hold" rating in a report on Wednesday, February 11th. Finally, Morgan Stanley raised their price target on Centene from $38.00 to $45.00 and gave the stock an "equal weight" rating in a research note on Wednesday, March 4th. Three equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $42.44.

Centene Stock Down 12.5%

The firm has a market capitalization of $18.64 billion, a PE ratio of -2.78, a PEG ratio of 0.97 and a beta of 0.48. The business's fifty day moving average price is $43.30 and its 200 day moving average price is $38.28. 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 issued its quarterly earnings results on Friday, February 6th. The company reported ($1.19) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.22) by $0.03. The firm had revenue of $49.73 billion for the quarter, compared to analysts' expectations of $48.41 billion. Centene had a positive return on equity of 4.25% and a negative net margin of 3.43%.The firm's revenue for the quarter was up 21.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.80 EPS. Centene has set its FY 2026 guidance at 3.000-3.000 EPS. On average, equities research analysts forecast that Centene Corporation will post 6.86 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Centene

Several hedge funds have recently modified their holdings of CNC. Baird Financial Group Inc. purchased a new position in Centene during the 1st quarter worth $236,000. Sivia Capital Partners LLC raised its holdings in Centene by 80.0% during the second quarter. Sivia Capital Partners LLC now owns 9,710 shares of the company's stock worth $527,000 after purchasing an additional 4,315 shares in the last quarter. Assetmark Inc. lifted its position in Centene by 248.2% in the second quarter. Assetmark Inc. now owns 1,156 shares of the company's stock valued at $63,000 after purchasing an additional 824 shares during the period. Atlantic Union Bankshares Corp purchased a new stake in Centene in the 2nd quarter valued at approximately $76,000. Finally, Fox Run Management L.L.C. increased its position in Centene by 43.0% during the 2nd quarter. Fox Run Management L.L.C. now owns 16,290 shares of the company's stock worth $884,000 after purchasing an additional 4,902 shares during the period. 93.63% of the stock is owned by institutional investors and hedge funds.

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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