AQR Capital Management LLC Acquires 3,306,796 Shares of Centene Corporation $CNC

Key Points

• AQR Capital Management LLC increased its holdings in Centene Corporation by 42.7%, acquiring 3,306,796 shares, making it the company's 11th largest holding with a value of approximately $669.8 million.
• Centene reported a quarterly loss of ($0.16) earnings per share, missing analyst expectations, but achieved revenues of $48.74 billion, surpassing estimates.
• Wall Street analysts have lowered their price targets for Centene, with current consensus in a "Hold" rating and an average price target of $42.20, down from previous forecasts.

AQR Capital Management LLC lifted its holdings in Centene Corporation (NYSE:CNC - Free Report) by 42.7% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 11,049,494 shares of the company's stock after buying an additional 3,306,796 shares during the quarter. Centene comprises 0.7% of AQR Capital Management LLC's portfolio, making the stock its 11th biggest holding. AQR Capital Management LLC owned about 2.22% of Centene worth $669,820,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in CNC. Pinney & Scofield Inc. acquired a new stake in Centene in the fourth quarter worth about $25,000. Ameriflex Group Inc. acquired a new position in shares of Centene in the 4th quarter valued at approximately $26,000. Quarry LP acquired a new position in shares of Centene in the 1st quarter valued at approximately $26,000. Studio Investment Management LLC acquired a new position in shares of Centene in the 4th quarter valued at approximately $32,000. Finally, Golden State Wealth Management LLC grew its position in shares of Centene by 203.1% in the 1st quarter. Golden State Wealth Management LLC now owns 579 shares of the company's stock valued at $35,000 after purchasing an additional 388 shares during the period. 93.63% of the stock is owned by institutional investors.

Centene Stock Performance

CNC opened at $29.60 on Wednesday. The firm has a market cap of $14.54 billion, a P/E ratio of 7.33, a price-to-earnings-growth ratio of 1.18 and a beta of 0.44. Centene Corporation has a 52-week low of $25.08 and a 52-week high of $80.59. 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 business's fifty day moving average is $31.27 and its 200-day moving average is $49.34.

Centene (NYSE:CNC - Get Free Report) last released its 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). The company had revenue of $48.74 billion for the quarter, compared to analyst estimates of $44.71 billion. Centene had a return on equity of 9.57% and a net margin of 1.15%.The business's revenue for the quarter was up 22.4% compared to the same quarter last year. During the same period last year, the company posted $2.42 earnings per share. Centene has set its FY 2025 guidance at 1.750-1.750 EPS. Sell-side analysts expect that Centene Corporation will post 6.86 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on CNC. Truist Financial decreased their price objective on Centene from $42.00 to $35.00 and set a "buy" rating for the company in a research report on Monday, July 28th. Mizuho dropped their price objective on Centene from $71.00 to $40.00 and set a "neutral" rating on the stock in a research note on Friday, July 11th. Wall Street Zen cut Centene from a "buy" rating to a "hold" rating in a research note on Saturday, July 12th. Cantor Fitzgerald reaffirmed a "neutral" rating and issued a $38.00 price objective on shares of Centene in a report on Tuesday, August 26th. Finally, Robert W. Baird decreased their price objective on Centene from $68.00 to $28.00 and set a "neutral" rating on the stock in a report on Friday, July 25th. Three research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $42.20.

Insider Activity

In other news, CEO Sarah London bought 19,230 shares of the company's stock in a transaction on Friday, August 8th. The stock was purchased at an average cost of $25.50 per share, for a total transaction of $490,365.00. Following the completion of the transaction, the chief executive officer owned 845,275 shares of the company's stock, valued at $21,554,512.50. This trade represents a 2.33% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Theodore R. Samuels II bought 9,000 shares of the company's stock in a transaction on Monday, July 28th. The stock was purchased at an average price of $27.62 per share, with a total value of $248,580.00. Following the completion of the transaction, the director directly owned 32,000 shares of the company's stock, valued at approximately $883,840. The trade was a 39.13% increase in their position. The disclosure for this purchase can be found here. 0.36% of the stock is currently owned by company insiders.

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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