Hsbc Holdings PLC Trims Stock Holdings in Centene Corporation $CNC

Key Points

• HSBC Holdings PLC reduced its Centene stake by 12.2% in the fourth quarter, selling 155,535 shares and ending with 1,119,779 shares valued at about $46.2 million.
• Several analysts remain constructive on Centene, with RBC initiating coverage at “sector perform” and a $70 target, while Deutsche Bank upgraded the stock to “buy” and raised its target to $80.
• Centene’s latest results beat expectations, as it reported $3.37 EPS and $49.94 billion in revenue, both above estimates, while revenue rose 7.1% year over year.

Hsbc Holdings PLC lowered its holdings in shares of Centene Corporation (NYSE:CNC - Free Report) by 12.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,119,779 shares of the company's stock after selling 155,535 shares during the quarter. Hsbc Holdings PLC owned 0.23% of Centene worth $46,194,000 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. Baird Financial Group Inc. purchased a new stake in Centene in the 1st quarter valued at about $236,000. Sivia Capital Partners LLC increased its position in shares of Centene by 80.0% during the second quarter. Sivia Capital Partners LLC now owns 9,710 shares of the company's stock worth $527,000 after acquiring an additional 4,315 shares during the period. CW Advisors LLC raised its stake in shares of Centene by 20.3% during the second quarter. CW Advisors LLC now owns 4,863 shares of the company's stock valued at $264,000 after acquiring an additional 820 shares in the last quarter. NewEdge Advisors LLC grew its stake in Centene by 6.1% in the second quarter. NewEdge Advisors LLC now owns 44,945 shares of the company's stock worth $2,440,000 after purchasing an additional 2,582 shares in the last quarter. Finally, Treasurer of the State of North Carolina increased its holdings in Centene by 0.4% during the 2nd quarter. Treasurer of the State of North Carolina now owns 231,938 shares of the company's stock worth $12,590,000 after purchasing an additional 967 shares during the period. Hedge funds and other institutional investors own 93.63% of the company's stock.

Key Headlines Impacting Centene

Here are the key news stories impacting Centene this week:

• Positive Sentiment: RBC started coverage on Centene with a “sector perform” rating and a $70 price target, implying upside from current levels and reinforcing investor confidence in the stock. RBC coverage on Centene
• Positive Sentiment: Zacks highlighted Centene as a Strong Buy growth stock and also called it a strong value and strong momentum name, suggesting improving market sentiment around the shares. Zacks growth stocks list
• Positive Sentiment: Centene announced the appointment of Lauren M. Tyler to its Board of Directors, a governance move that can be viewed as a sign of continued board refreshment and strategic oversight. Centene appoints Lauren M. Tyler to board
• Neutral Sentiment: Health Net said it is providing special assistance to members and providers affected by the Palos warehouse fire in Los Angeles; this is operationally supportive but not likely to materially change Centene’s fundamentals on its own. Health Net wildfire assistance
• Neutral Sentiment: Commentary pieces on Centene’s governance, efficiency, and style scores mainly reinforce the investment case rather than introduce a new catalyst. Centene governance and efficiency article

Centene Stock Performance

CNC stock opened at $63.36 on Wednesday. The firm has a 50-day simple moving average of $55.04 and a two-hundred day simple moving average of $45.50. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.12 and a current ratio of 1.12. Centene Corporation has a one year low of $25.08 and a one year high of $66.55. The firm has a market cap of $31.29 billion, a price-to-earnings ratio of -4.82, a PEG ratio of 0.50 and a beta of 1.09.

Centene (NYSE:CNC - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The company reported $3.37 EPS for the quarter, topping the consensus estimate of $2.23 by $1.14. Centene had a negative net margin of 3.25% and a positive return on equity of 5.57%. The firm had revenue of $49.94 billion during the quarter, compared to analyst estimates of $47.53 billion. During the same quarter in the previous year, the business posted $2.90 EPS. Centene's revenue was up 7.1% on a year-over-year basis. On average, equities analysts forecast that Centene Corporation will post 3.45 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on CNC. Sanford C. Bernstein upped their target price on Centene from $48.00 to $68.00 and gave the stock an "outperform" rating in a report on Tuesday, May 5th. JPMorgan Chase & Co. lifted their price objective on Centene from $52.00 to $60.00 and gave the company a "neutral" rating in a report on Monday, June 8th. Barclays reaffirmed an "overweight" rating on shares of Centene in a research note on Tuesday, June 16th. Jefferies Financial Group raised their target price on shares of Centene from $39.00 to $48.00 and gave the company a "hold" rating in a research report on Wednesday, April 29th. Finally, Deutsche Bank Aktiengesellschaft raised shares of Centene from a "hold" rating to a "buy" rating and upped their price target for the stock from $53.00 to $80.00 in a research report on Wednesday, May 20th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $60.78.

Centene Profile

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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