Centene (NYSE:CNC) Upgraded by Wall Street Zen to Strong-Buy Rating

Key Points

• Centene was upgraded by Wall Street Zen from “buy” to “strong-buy”, signaling improved sentiment on the stock.
• Other analysts remain mixed: Barclays kept an overweight rating, while Morgan Stanley, TD Cowen, Wells Fargo, and Weiss Ratings issued more cautious views. Overall, Centene’s consensus rating is still “Hold” with an average target price of $64.61.
• The company recently posted better-than-expected quarterly results, with EPS of $3.37 versus estimates of $2.23 and revenue of $49.94 billion above forecasts. Revenue also rose 7.1% year over year, and institutional investors own 93.63% of the stock.

Centene (NYSE:CNC - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report issued on Saturday.

Several other research analysts also recently weighed in on the company. Barclays reaffirmed an "overweight" rating on shares of Centene in a research note on Tuesday, June 16th. Morgan Stanley boosted their price target on shares of Centene from $50.00 to $57.00 and gave the stock an "equal weight" rating in a report on Thursday, June 4th. Weiss Ratings restated a "sell (d)" rating on shares of Centene in a research report on Monday, April 20th. TD Cowen reiterated a "hold" rating and issued a $65.00 target price (up from $47.00) on shares of Centene in a research report on Tuesday. Finally, Wells Fargo & Company set a $69.00 target price on shares of Centene and gave the stock an "equal weight" rating in a research note on Monday. Seven research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Centene has an average rating of "Hold" and a consensus target price of $64.61.

Centene Price Performance

NYSE:CNC opened at $66.29 on Friday. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 0.76. Centene has a 52 week low of $25.08 and a 52 week high of $69.36. The stock's 50-day moving average price is $62.76 and its 200-day moving average price is $48.85. The stock has a market capitalization of $32.73 billion, a PE ratio of -5.04, a price-to-earnings-growth ratio of 0.50 and a beta of 1.07.

Centene (NYSE:CNC - Get Free Report) last released its quarterly 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 company had revenue of $49.94 billion during the quarter, compared to analysts' expectations of $47.53 billion. Centene had a positive return on equity of 5.57% and a negative net margin of 3.25%.Centene's quarterly revenue was up 7.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.90 EPS. As a group, equities analysts expect that Centene will post 3.44 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. DV Equities LLC acquired a new stake in shares of Centene in the fourth quarter valued at about $26,000. IFC & Insurance Marketing Inc. acquired a new position in Centene during the fourth quarter worth about $28,000. SBI Securities Co. Ltd. grew its stake in Centene by 118.4% during the 4th quarter. SBI Securities Co. Ltd. now owns 749 shares of the company's stock valued at $31,000 after acquiring an additional 406 shares in the last quarter. Bayban acquired a new stake in Centene in the 4th quarter valued at about $33,000. Finally, MV Capital Management Inc. acquired a new stake in Centene in the 4th quarter valued at about $34,000. Hedge funds and other institutional investors own 93.63% of the company's stock.

Centene Company Profile

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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