Centene Corporation $CNC Holdings Reduced by Capital World Investors

Key Points

• Capital World Investors cut its Centene stake by 78.1% in Q3, selling 13,856,716 shares and retaining 3,875,999 shares (about 0.79% ownership) valued at roughly $138.3 million.
• Shares tumbled after Centene's CEO warned individual‑market enrollment could fall from ~5.5M to 3.5M, a primary catalyst for analyst target cuts and unusually high put‑option volume that intensified the selloff.
• Despite near‑term headwinds, Centene reaffirmed its 2026 outlook and redeemed certain debt notes; the company also reported a revenue beat ($49.73B) but posted a quarterly loss of ($1.19) per share and has a market cap of about $17.66B.

Capital World Investors lessened its holdings in shares of Centene Corporation (NYSE:CNC - Free Report) by 78.1% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 3,875,999 shares of the company's stock after selling 13,856,716 shares during the period. Capital World Investors owned 0.79% of Centene worth $138,296,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. WPG Advisers LLC raised its stake in Centene by 44.5% during the 3rd quarter. WPG Advisers LLC now owns 915 shares of the company's stock valued at $33,000 after acquiring an additional 282 shares in the last quarter. Versant Capital Management Inc grew its stake in shares of Centene by 11.6% in the third quarter. Versant Capital Management Inc now owns 3,421 shares of the company's stock worth $122,000 after purchasing an additional 355 shares in the last quarter. Snowden Capital Advisors LLC increased its holdings in shares of Centene by 8.0% during the second quarter. Snowden Capital Advisors LLC now owns 5,073 shares of the company's stock valued at $275,000 after purchasing an additional 374 shares during the period. MAI Capital Management raised its stake in shares of Centene by 6.3% during the third quarter. MAI Capital Management now owns 6,545 shares of the company's stock valued at $234,000 after purchasing an additional 388 shares in the last quarter. Finally, Financial Network Wealth Advisors LLC lifted its holdings in Centene by 54.9% in the third quarter. Financial Network Wealth Advisors LLC now owns 1,100 shares of the company's stock worth $39,000 after purchasing an additional 390 shares during the period. 93.63% of the stock is owned by institutional investors.

Key Centene News

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Superior HealthPlan (a Centene unit) named a Rio Grande Valley provider a Foster Care Center of Excellence — a local operating win that supports managed‑care positioning in Texas. Superior HealthPlan Names Cute Pediatrics as First Rio Grande Valley Provider to Earn Foster Care Distinction
• Positive Sentiment: Company update: Centene reaffirmed its 2026 outlook and redeemed certain debt notes — signaling liquidity/commitment to guidance despite near‑term headwinds. Centene Reaffirms 2026 Outlook and Redeems Debt Notes
• Neutral Sentiment: Management presentation/transcript from Barclays conference is available — useful for detail on guidance and membership trends but did not offset market concern. Centene Corporation (CNC) Presents at Barclays 28th Annual Global Healthcare Conference Transcript
• Neutral Sentiment: Industry context: analysts note HMO names face cost pressure, nursing shortages and policy risk — structural headwinds that increase sensitivity to ACA enrollment swings. 4 HMO Stocks to Watch Despite Escalating Costs, Nursing Shortage
• Negative Sentiment: CEO warning of a steep ACA membership decline: management said individual-market enrollment may fall to ~3.5M from ~5.5M — a dramatic reduction that directly cuts revenue and hurts margins, and was cited as the primary catalyst for the selloff. Centene (CNC) Stock Plunges 14% as CEO Warns of Massive ACA Enrollment Decline
• Negative Sentiment: News and market reactions: multiple outlets report shares falling after executives flagged steeper ACA membership losses; Mizuho and other analysts lowered targets/expressed caution. Centene shares fall as health insurer sees steeper drop in Obamacare memberships
• Negative Sentiment: Broader coverage: stories framing the “slow death” of enhanced ACA subsidies and plunging enrollment directly link the policy shift to Centene’s weakness. Obamacare’s Slow Death Is Debilitating Centene Stock
• Negative Sentiment: Market signals: unusually high put‑option volume and elevated trading volume show short/bear positioning and higher conviction among downside traders, amplifying price moves.

Centene Price Performance

Shares of NYSE:CNC opened at $35.91 on Thursday. The company's fifty day moving average is $43.09 and its two-hundred day moving average is $38.32. The company has a market cap of $17.66 billion, a P/E ratio of -2.64, a price-to-earnings-growth ratio of 0.81 and a beta of 0.48. Centene Corporation has a 12-month low of $25.08 and a 12-month high of $66.03. 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 for the quarter, beating analysts' consensus estimates of ($1.22) by $0.03. Centene had a positive return on equity of 4.25% and a negative net margin of 3.43%.The business had revenue of $49.73 billion for the quarter, compared to the consensus estimate of $48.41 billion. During the same quarter in the previous year, the company posted $0.80 earnings per share. Centene's revenue for the quarter was up 21.9% compared to the same quarter last year. Centene has set its FY 2026 guidance at 3.000-3.000 EPS. Equities analysts expect that Centene Corporation will post 6.86 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts have commented on CNC shares. Sanford C. Bernstein reissued an "outperform" rating and set a $59.00 target price on shares of Centene in a research note on Tuesday, January 6th. Weiss Ratings reiterated a "sell (d)" rating on shares of Centene in a report on Wednesday, January 21st. Argus raised Centene to a "hold" rating in a report on Monday, February 9th. Jefferies Financial Group cut their target price on Centene from $43.00 to $37.00 and set a "hold" rating for the company in a research report on Friday, February 13th. Finally, Mizuho set a $41.00 price target on Centene and gave the company a "neutral" rating in a research report on Tuesday. 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 company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $42.06.

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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