Factorial Partners LLC Purchases 18,500 Shares of Centene Corporation (NYSE:CNC)

Key Points

• Factorial Partners LLC increased its stake in Centene Corporation by 34.6% during the 1st quarter, owning 72,000 shares valued at approximately $4.37 million.
• Centene's shares recently received negative revisions from several analysts, with Mizuho lowering its price target from $71.00 to $40.00 and multiple firms assigning a "hold" or "underperform" rating.
• Despite a 22.4% increase in quarterly revenue year-over-year, Centene reported earnings of ($0.16) per share, missing analysts' estimates of $0.23 by a significant margin.

Factorial Partners LLC grew its position in shares of Centene Corporation (NYSE:CNC - Free Report) by 34.6% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 72,000 shares of the company's stock after buying an additional 18,500 shares during the quarter. Centene makes up about 2.7% of Factorial Partners LLC's investment portfolio, making the stock its 13th largest holding. Factorial Partners LLC's holdings in Centene were worth $4,371,000 at the end of the most recent reporting period.

Several other institutional investors have also made changes to their positions in CNC. Ameriflex Group Inc. bought a new position in Centene in the 4th quarter worth approximately $26,000. Pinney & Scofield Inc. acquired a new stake in shares of Centene during the 4th quarter worth approximately $25,000. Studio Investment Management LLC acquired a new stake in shares of Centene during the 4th quarter worth approximately $32,000. Golden State Wealth Management LLC boosted its stake in 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 buying an additional 388 shares in the last quarter. Finally, Bruce G. Allen Investments LLC grew its position in Centene by 273.8% in the first quarter. Bruce G. Allen Investments LLC now owns 927 shares of the company's stock valued at $56,000 after acquiring an additional 679 shares during the period. 93.63% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on CNC. Wells Fargo & Company cut Centene from an "overweight" rating to an "equal weight" rating and lowered their price target for the company from $72.00 to $30.00 in a research report on Wednesday, July 23rd. Barclays reduced their price objective on Centene from $65.00 to $45.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 2nd. TD Cowen reissued a "hold" rating and issued a $33.00 price objective (down previously from $73.00) on shares of Centene in a research note on Monday, July 21st. Bank of America downgraded Centene from a "neutral" rating to an "underperform" rating and dropped their target price for the stock from $52.00 to $30.00 in a research report on Wednesday, July 16th. Finally, Morgan Stanley dropped their target price on Centene from $33.00 to $28.00 and set an "equal weight" rating for the company in a research report on Monday. One equities research analyst has rated the stock with a sell rating, fourteen have issued a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat.com, Centene currently has a consensus rating of "Hold" and an average target price of $42.20.

Centene Stock Up 0.1%

NYSE CNC traded up $0.02 during trading hours on Thursday, hitting $25.23. 14,945,806 shares of the company traded hands, compared to its average volume of 22,141,484. The business's 50-day moving average is $41.54 and its 200-day moving average is $53.83. Centene Corporation has a twelve month low of $25.08 and a twelve month 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 stock has a market capitalization of $12.39 billion, a price-to-earnings ratio of 6.25, a P/E/G ratio of 1.03 and a beta of 0.40.

Centene (NYSE:CNC - Get Free Report) last released its quarterly earnings data 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 business had revenue of $48.74 billion during the quarter, compared to the consensus estimate of $44.71 billion. Centene had a net margin of 1.15% and a return on equity of 9.57%. Centene's quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.42 EPS. Sell-side analysts anticipate that Centene Corporation will post 6.86 earnings per share for the current year.

Insider Transactions at Centene

In other Centene news, Director Theodore R. Samuels II acquired 9,000 shares of the company's stock in a transaction on Monday, July 28th. The shares were purchased at an average price of $27.62 per share, for a total transaction of $248,580.00. Following the completion of the purchase, the director directly owned 32,000 shares of the company's stock, valued at approximately $883,840. This represents a 39.13% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.36% of the stock is owned by corporate insiders.

Centene 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.