Avidity Partners Management LP Sells 49,400 Shares of Centene Corporation $CNC

Key Points

• Avidity Partners Management LP cut its Centene stake by 41.4% in the first quarter, selling 49,400 shares and retaining 70,000 shares valued at approximately $2.29 million. Institutional investors collectively own 93.63% of Centene.
• Centene reported strong quarterly results, with EPS of $2.51 versus the $1.09 consensus estimate and revenue up 9.9% year over year to $53.58 billion. The company raised its 2026 earnings outlook to at least $4.80 per share.
• Analyst sentiment remains mixed but generally constructive: Centene has an average “Hold” rating and a $67 price target, while Medicaid pressures and declining membership remain key risks.

Avidity Partners Management LP reduced its stake in Centene Corporation (NYSE:CNC - Free Report) by 41.4% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 70,000 shares of the company's stock after selling 49,400 shares during the quarter. Centene comprises approximately 0.5% of Avidity Partners Management LP's portfolio, making the stock its 23rd biggest holding. Avidity Partners Management LP's holdings in Centene were worth $2,292,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of CNC. Summitry LLC lifted its holdings in shares of Centene by 1.1% during the 1st quarter. Summitry LLC now owns 23,925 shares of the company's stock worth $783,000 after acquiring an additional 253 shares during the last quarter. Segall Bryant & Hamill LLC bought a new position in Centene in the first quarter valued at $556,000. Janus Henderson Group PLC raised its position in Centene by 3.8% during the first quarter. Janus Henderson Group PLC now owns 865,760 shares of the company's stock valued at $28,344,000 after purchasing an additional 31,485 shares in the last quarter. Bull Harbor Capital LLC bought a new stake in Centene during the first quarter worth about $2,072,000. Finally, Amundi lifted its stake in Centene by 30.4% during the first quarter. Amundi now owns 3,873,987 shares of the company's stock worth $126,834,000 after purchasing an additional 902,581 shares during the last quarter. Hedge funds and other institutional investors own 93.63% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently commented on CNC shares. Wells Fargo & Company set a $69.00 price objective on Centene and gave the company an "equal weight" rating in a research report on Monday, July 13th. Barclays reaffirmed an "overweight" rating and issued a $80.00 target price (up from $75.00) on shares of Centene in a research note on Wednesday. Morgan Stanley set a $66.00 price target on shares of Centene in a research report on Wednesday. Royal Bank Of Canada boosted their price objective on shares of Centene from $70.00 to $71.00 and gave the stock a "sector perform" rating in a report on Thursday, July 9th. Finally, Bank of America upped their price objective on shares of Centene from $72.00 to $74.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $67.00.

Centene Trading Up 2.3%

NYSE CNC opened at $62.23 on Friday. The firm has a market capitalization of $30.74 billion, a PE ratio of -5.96, a P/E/G ratio of 0.32 and a beta of 1.07. The stock's 50 day moving average is $63.87 and its 200 day moving average is $50.27. Centene Corporation has a twelve month low of $25.08 and a twelve month high of $69.36. The company has a quick ratio of 1.12, a current ratio of 1.15 and a debt-to-equity ratio of 0.71.

Centene (NYSE:CNC - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The company reported $2.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $1.42. Centene had a positive return on equity of 12.12% and a negative net margin of 2.51%.The business had revenue of $53.58 billion during the quarter, compared to the consensus estimate of $47.64 billion. During the same quarter in the prior year, the company earned ($0.16) earnings per share. The firm's quarterly revenue was up 9.9% compared to the same quarter last year. Centene has set its FY 2026 guidance at 4.800- EPS. Research analysts forecast that Centene Corporation will post 4.91 earnings per share for the current fiscal year.

Key Stories Impacting Centene

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Strong Q2 results and raised outlook: Centene reported adjusted earnings of $2.51 per share, well above the $1.09 consensus estimate, while revenue rose 9.9% year over year to $53.58 billion. The insurer also raised its 2026 earnings outlook to at least $4.80 per share, citing contained medical costs. Centene Lifts 2026 Outlook as Insurer Contains Medical Costs
• Positive Sentiment: Analyst support has strengthened: Zacks Research upgraded CNC from “hold” to “strong buy,” while Truist maintained its buy rating. Robert W. Baird also expects the stock to rise, providing additional support for the recent rally. Zacks.com Truist Financial Keeps Their Buy Rating on Centene
• Positive Sentiment: Momentum and valuation remain favorable: Zacks included Centene among its Rank #1 momentum stocks, and other analyses describe CNC as potentially undervalued following its earnings recovery. These reports may attract momentum and value-oriented investors. Best Momentum Stock to Buy
• Neutral Sentiment: Relative investment appeal: A comparison with UnitedHealth favors UNH because of its diversified platform, Optum growth and artificial-intelligence investments. The assessment does not identify a new negative development at Centene but could limit CNC’s appeal among managed-care investors. UnitedHealth vs. Centene
• Negative Sentiment: Medicaid and membership concerns persist: Coverage highlights declining membership and ongoing Medicaid-related pressure, which could challenge revenue growth and margins even as medical-cost trends improve. Medicaid Weighs on Centene

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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