Traders Purchase Large Volume of Centene Call Options (NYSE:CNC)

Key Points

• Unusually High Options Trading: Centene Corp experienced a significant increase in options trading, with investors buying 27,893 call options—up 42% from the typical volume.
• Stock Performance Details: Shares of Centene traded down to $27.03, with a market capitalization of $13.45 billion and a P/E ratio of 6.70.
• Analyst Ratings and Target Prices: Analysts have downgraded Centene’s stock ratings, with target prices falling significantly, the lowest now being $30.00 following a downgrade by Bank of America.

Centene Corporation (NYSE:CNC - Get Free Report) was the recipient of some unusual options trading on Monday. Stock investors acquired 27,893 call options on the company. Thisrepresentsanincreaseofapproximately42% compared to the average daily volume of 19,621 call options.

Analyst Ratings Changes

A number of research analysts have commented on CNC shares. Morgan Stanley downgraded Centene from an "overweight" rating to an "equal weight" rating and reduced their target price for the stock from $70.00 to $33.00 in a report on Thursday, July 10th. Guggenheim reaffirmed a "neutral" rating on shares of Centene in a report on Tuesday, April 29th. UBS Group dropped their target price on shares of Centene from $45.00 to $31.00 and set a "neutral" rating on the stock in a report on Monday. Jefferies Financial Group decreased their price target on shares of Centene from $64.00 to $61.00 and set a "hold" rating for the company in a report on Tuesday, April 29th. Finally, JPMorgan Chase & Co. cut their target price on shares of Centene from $48.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday. One research analyst has rated the stock with a sell rating, fifteen have given a hold rating and three have assigned a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $45.31.

Centene Stock Performance

Shares of NYSE:CNC traded down $0.15 on Friday, hitting $25.92. The company's stock had a trading volume of 17,527,511 shares, compared to its average volume of 8,140,882. The company has a market capitalization of $12.73 billion, a price-to-earnings ratio of 6.42, a price-to-earnings-growth ratio of 1.07 and a beta of 0.44. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.11 and a current ratio of 1.10. Centene has a 12 month low of $25.11 and a 12 month high of $80.59. The stock's 50-day moving average is $44.00 and its two-hundred day moving average is $54.85.

Centene (NYSE:CNC - Get Free Report) last issued its quarterly earnings results on Friday, July 25th. The company reported ($0.16) EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.39). The business had revenue of $48.74 billion for the quarter, compared to analyst estimates of $44.71 billion. Centene had a net margin of 1.15% and a return on equity of 9.57%. Centene's revenue for the quarter was up 22.4% on a year-over-year basis. During the same period last year, the business posted $2.42 earnings per share. On average, equities research analysts forecast that Centene will post 6.86 EPS for the current year.

Insiders Place Their Bets

In related news, Director Theodore R. Samuels II bought 9,000 shares of the business's stock in a transaction dated Monday, July 28th. The shares were acquired at an average price of $27.62 per share, for a total transaction of $248,580.00. Following the purchase, the director owned 32,000 shares in the company, valued at $883,840. This trade represents a 39.13% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.36% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Centene

Several hedge funds have recently modified their holdings of CNC. Mizuho Markets Cayman LP acquired a new stake in Centene during the second quarter valued at approximately $1,669,000. New York Life Investment Management LLC increased its holdings in shares of Centene by 2.2% in the 2nd quarter. New York Life Investment Management LLC now owns 69,179 shares of the company's stock valued at $3,755,000 after purchasing an additional 1,514 shares during the period. Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its stake in shares of Centene by 99.3% during the 2nd quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 134,260 shares of the company's stock valued at $7,288,000 after buying an additional 66,900 shares during the period. AustralianSuper Pty Ltd lifted its holdings in shares of Centene by 81.3% during the 2nd quarter. AustralianSuper Pty Ltd now owns 1,279,287 shares of the company's stock valued at $69,440,000 after buying an additional 573,736 shares during the last quarter. Finally, Teacher Retirement System of Texas increased its stake in shares of Centene by 7.8% during the 2nd quarter. Teacher Retirement System of Texas now owns 618,167 shares of the company's stock worth $33,554,000 after purchasing an additional 44,536 shares during the last quarter. 93.63% of the stock is currently owned by institutional investors and hedge funds.

About Centene

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.