Centene Corporation $CNC Shares Sold by Essential Partners LLC

Key Points

• Essential Partners LLC cut its Centene stake by 39.6% in the first quarter, selling 26,276 shares and retaining 39,998 shares worth approximately $1.31 million. Institutional investors collectively own 93.63% of Centene.
• Centene reported strong second-quarter results, with adjusted EPS of $2.51 versus the $1.09 consensus estimate and revenue up 9.9% year over year to $53.58 billion. Management raised its 2026 EPS outlook to about $4.80.
• Despite the earnings improvement, analysts maintain an overall Hold rating with an average $67 price target, as investors remain concerned about declining Medicaid enrollment, medical-cost pressures and the durability of the recovery.

Essential Partners LLC reduced its position in shares of Centene Corporation (NYSE:CNC - Free Report) by 39.6% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 39,998 shares of the company's stock after selling 26,276 shares during the period. Essential Partners LLC's holdings in Centene were worth $1,310,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in Centene by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 56,978,753 shares of the company's stock worth $2,344,676,000 after acquiring an additional 190,334 shares during the last quarter. AQR Capital Management LLC grew its holdings in shares of Centene by 117.0% during the fourth quarter. AQR Capital Management LLC now owns 31,798,738 shares of the company's stock valued at $1,308,518,000 after purchasing an additional 17,143,904 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Centene by 5.5% during the 4th quarter. Geode Capital Management LLC now owns 13,271,492 shares of the company's stock worth $554,338,000 after purchasing an additional 697,277 shares during the period. Deerfield Management Company L.P. lifted its holdings in shares of Centene by 184.0% in the 3rd quarter. Deerfield Management Company L.P. now owns 9,046,000 shares of the company's stock worth $322,761,000 after purchasing an additional 5,860,630 shares during the last quarter. Finally, Morgan Stanley boosted its position in Centene by 7.2% during the 4th quarter. Morgan Stanley now owns 9,002,570 shares of the company's stock valued at $370,456,000 after purchasing an additional 603,585 shares during the period. Institutional investors and hedge funds own 93.63% of the company's stock.

Key Stories Impacting Centene

Here are the key news stories impacting Centene this week:

• Positive Sentiment: Centene reported adjusted second-quarter EPS of $2.51, well above the $1.09 consensus estimate, while revenue rose 9.9% year over year to $53.58 billion. Margin recovery, cost discipline and stronger Marketplace performance supported the results. Centene Could Be 3% Undervalued After Strong Q2 Earnings And Higher Outlook
• Positive Sentiment: Management raised its 2026 outlook to approximately $4.80 in EPS, citing contained medical costs and continued margin improvement. The guidance increase initially prompted a positive market reaction. Centene Lifts 2026 Outlook as Insurer Contains Medical Costs
• Positive Sentiment: Positive momentum and value assessments continue: Zacks included CNC among its Rank #1 Strong Buy momentum stocks, while other coverage described the shares as potentially undervalued following their substantial recovery. Best Momentum Stock to Buy for July 30th
• Neutral Sentiment: Robert W. Baird raised its price target from $46 to $66 but maintained a Neutral rating, implying limited upside from the current trading level. Centene also announced plans to redeem $500 million of its 2027 notes, reducing future debt obligations. Centene Announces Partial Redemption of 2027 Notes
• Negative Sentiment: The main pressure is concern over declining Medicaid enrollment and the sustainability of the earnings recovery. Investors appear to be treating the improved outlook cautiously because lower membership could weigh on future revenue, while higher medical utilization remains a risk. Oscar Health Flashes Buy Signal As Medicaid Weighs On Centene

Centene Trading Down 1.6%

NYSE:CNC opened at $60.84 on Friday. The stock has a fifty day simple moving average of $63.81 and a 200 day simple moving average of $50.19. The firm has a market capitalization of $30.05 billion, a price-to-earnings ratio of -5.83, a price-to-earnings-growth ratio of 0.33 and a beta of 1.07. Centene Corporation has a 1-year low of $25.08 and a 1-year 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 the consensus estimate 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 firm had revenue of $53.58 billion for the quarter, compared to the consensus estimate of $47.64 billion. During the same quarter in the previous year, the company earned ($0.16) EPS. The business's revenue for the quarter was up 9.9% compared to the same quarter last year. Centene has set its FY 2026 guidance at 4.800- EPS. Sell-side analysts forecast that Centene Corporation will post 4.95 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research analysts have commented on CNC shares. The Goldman Sachs Group restated a "sell" rating and issued a $40.00 target price on shares of Centene in a research report on Wednesday, April 29th. Morgan Stanley set a $66.00 price objective on Centene in a research report on Wednesday. Raymond James Financial set a $75.00 target price on Centene in a research report on Tuesday, July 7th. JPMorgan Chase & Co. lifted their target price on Centene from $52.00 to $60.00 and gave the company a "neutral" rating in a research note on Monday, June 8th. Finally, Mizuho set a $63.00 price target on Centene and gave the stock a "neutral" rating in a research note on Monday, June 8th. Seven analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Centene presently has an average rating of "Hold" and an average target price of $67.00.

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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