Envestnet Portfolio Solutions Inc. Acquires 24,128 Shares of Centene Corporation $CNC

Key Points

• Envestnet Portfolio Solutions increased its Centene stake by 11.6% in the second quarter, purchasing 24,128 shares and bringing its holdings to 232,196 shares valued at approximately $15.3 million.
• Institutional ownership remains very high at 93.63%, with major investors including BlackRock, Wellington Management, Norges Bank, Bank of America, and Deutsche Bank making significant investments.
• Analyst sentiment is mixed: Centene has an average “Hold” rating and a $70.05 price target, while the company recently exceeded quarterly EPS and revenue expectations, reporting $2.51 EPS and $53.58 billion in revenue.

Envestnet Portfolio Solutions Inc. raised its holdings in Centene Corporation (NYSE:CNC - Free Report) by 11.6% during the second quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 232,196 shares of the company's stock after buying an additional 24,128 shares during the quarter. Envestnet Portfolio Solutions Inc.'s holdings in Centene were worth $15,309,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. BlackRock Inc. bought a new stake in shares of Centene during the second quarter valued at approximately $2,660,422,000. Wellington Management Group LLP raised its position in shares of Centene by 423.0% in the 2nd quarter. Wellington Management Group LLP now owns 13,301,215 shares of the company's stock worth $853,805,000 after purchasing an additional 10,757,914 shares during the last quarter. Norges Bank bought a new position in Centene in the 4th quarter worth about $332,044,000. Bank of America Corp DE bought a new stake in Centene during the 2nd quarter valued at about $285,713,000. Finally, Deutsche Bank AG purchased a new position in Centene in the second quarter worth about $257,279,000. Institutional investors own 93.63% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have commented on CNC shares. Mizuho set a $63.00 target price on Centene and gave the company a "neutral" rating in a research note on Monday, June 8th. Argus upgraded shares of Centene from a "hold" rating to a "buy" rating and set a $80.00 price objective on the stock in a research report on Tuesday, August 11th. Robert W. Baird raised their target price on shares of Centene from $46.00 to $66.00 and gave the stock a "neutral" rating in a report on Wednesday, July 29th. Bank of America lifted their price objective on Centene from $72.00 to $74.00 and gave the stock a "buy" rating in a report on Thursday, June 4th. Finally, UBS Group set a $79.00 target price on Centene in a report on Tuesday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $70.05.

Centene Stock Performance

Shares of CNC opened at $61.97 on Thursday. The business has a 50-day simple moving average of $65.21 and a two-hundred day simple moving average of $56.31. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.71. Centene Corporation has a 52 week low of $31.63 and a 52 week high of $69.63. The stock has a market cap of $30.61 billion, a price-to-earnings ratio of -5.94, a PEG ratio of 0.40 and a beta of 1.10.

Centene (NYSE:CNC - Get Free Report) last announced its quarterly earnings data on Monday, July 27th. The company reported $2.51 earnings per share (EPS) for the quarter, beating 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 company had revenue of $53.58 billion during the quarter, compared to the consensus estimate of $47.64 billion. During the same period in the previous year, the company posted ($0.16) EPS. The firm's revenue was up 9.9% on a year-over-year basis. On average, analysts expect that Centene Corporation will post 4.89 EPS for the current year.

Insider Buying and Selling

In other Centene news, General Counsel Christopher Koster sold 56,500 shares of the firm's stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $66.90, for a total transaction of $3,779,850.00. Following the sale, the general counsel directly owned 248,854 shares of the company's stock, valued at $16,648,332.60. This trade represents a 18.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.37% of the stock is currently owned by corporate insiders.

About Centene

Centene Corporation NYSE: CNC is a managed-care company that provides health insurance and related healthcare services, primarily through government-sponsored programs. Its offerings include Medicaid, Medicare Advantage and Medicare Prescription Drug plans, coverage for individuals and families through the health insurance marketplace, and health services for military families and veterans.

The company markets several healthcare brands, including Ambetter, which provides marketplace plans, and Wellcare, which offers Medicare products.

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