Pallas Capital Advisors LLC Lowers Holdings in Centene Corporation $CNC

Key Points

• Pallas Capital Advisors LLC has reduced its stake in Centene Corporation by 59.0%, owning 23,635 shares valued at approximately $1.28 million following the sale of 34,062 shares in the 2nd quarter.
• Centene reported a loss of $0.16 per share in its most recent earnings, missing estimates, despite a 22.4% year-over-year revenue increase to $48.74 billion.
• Analysts have recently downgraded Centene’s stock ratings, with Bank of America cutting its rating to “underperform” and reducing its price target from $52 to $30.

Pallas Capital Advisors LLC reduced its stake in shares of Centene Corporation (NYSE:CNC - Free Report) by 59.0% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 23,635 shares of the company's stock after selling 34,062 shares during the quarter. Pallas Capital Advisors LLC's holdings in Centene were worth $1,283,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently modified their holdings of the stock. MassMutual Private Wealth & Trust FSB increased its holdings in Centene by 8.8% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 2,092 shares of the company's stock valued at $127,000 after acquiring an additional 169 shares during the last quarter. Quadcap Wealth Management LLC increased its holdings in shares of Centene by 3.2% in the first quarter. Quadcap Wealth Management LLC now owns 5,617 shares of the company's stock worth $341,000 after purchasing an additional 172 shares during the last quarter. Poinciana Advisors Group LLC lifted its position in shares of Centene by 2.8% in the first quarter. Poinciana Advisors Group LLC now owns 7,221 shares of the company's stock worth $438,000 after buying an additional 195 shares in the last quarter. Carnegie Investment Counsel boosted its stake in Centene by 6.0% during the first quarter. Carnegie Investment Counsel now owns 3,811 shares of the company's stock valued at $234,000 after buying an additional 215 shares during the last quarter. Finally, Allworth Financial LP grew its holdings in Centene by 6.1% during the 1st quarter. Allworth Financial LP now owns 4,387 shares of the company's stock valued at $270,000 after buying an additional 254 shares in the last quarter. Hedge funds and other institutional investors own 93.63% of the company's stock.

Centene Trading Up 3.1%

NYSE:CNC traded up $0.99 during mid-day trading on Monday, hitting $32.76. 9,234,554 shares of the stock traded hands, compared to its average volume of 13,426,395. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 0.64. Centene Corporation has a 52 week low of $25.08 and a 52 week high of $76.08. The stock has a market capitalization of $16.09 billion, a price-to-earnings ratio of 8.11, a PEG ratio of 1.29 and a beta of 0.44. The firm's 50 day moving average is $28.74 and its two-hundred day moving average is $46.64.

Centene (NYSE:CNC - Get Free Report) last announced its earnings results 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 for the quarter, compared to analysts' expectations of $44.71 billion. Centene had a net margin of 1.15% and a return on equity of 9.57%. The firm's quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter last year, the firm earned $2.42 EPS. Centene has set its FY 2025 guidance at 1.750-1.750 EPS. On average, equities research analysts predict that Centene Corporation will post 6.86 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on CNC shares. TD Cowen reaffirmed a "hold" rating and set a $33.00 price objective (down from $73.00) on shares of Centene in a report on Monday, July 21st. Oppenheimer lowered their price objective on shares of Centene from $51.00 to $43.00 and set an "outperform" rating for the company in a research report on Monday, July 28th. Wall Street Zen downgraded shares of Centene from a "buy" rating to a "hold" rating in a report on Saturday, July 12th. Bank of America downgraded shares of Centene from a "neutral" rating to an "underperform" rating and lowered their price target for the company from $52.00 to $30.00 in a report on Wednesday, July 16th. Finally, JPMorgan Chase & Co. dropped their price target on Centene from $48.00 to $30.00 and set a "neutral" rating for the company in a research report on Tuesday, July 29th. Three investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Centene presently has an average rating of "Hold" and an average target price of $38.33.

Insiders Place Their Bets

In related news, CEO Sarah London acquired 19,230 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The stock was bought at an average price of $25.50 per share, for a total transaction of $490,365.00. Following the acquisition, the chief executive officer directly owned 845,275 shares of the company's stock, valued at $21,554,512.50. This represents a 2.33% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Theodore R. Samuels II bought 9,000 shares of the company's stock in a transaction on Monday, July 28th. The stock was bought 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 in the company, valued at approximately $883,840. This represents a 39.13% increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 0.36% of the company's stock.

About Centene

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.