QRG Capital Management Inc. Makes New Investment in Centene Corporation $CNC

Key Points

• QRG Capital Management acquired 44,403 Centene shares worth approximately $2.85 million in the second quarter. Institutional investors collectively own 93.63% of Centene.
• Centene reported quarterly revenue of $53.58 billion and earnings of $2.51 per share, exceeding analyst estimates, while revenue increased 9.9% year over year.
• Analyst sentiment is mixed, with an average rating of “Hold” and an average price target of $70.05 versus the stock’s stated price of $61.82.

QRG Capital Management Inc. acquired a new position in Centene Corporation (NYSE:CNC - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 44,403 shares of the company's stock, valued at approximately $2,850,000.

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

Centene Price Performance

CNC opened at $61.82 on Friday. The business has a fifty day moving average of $65.08 and a 200 day moving average of $56.48. 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 $30.54 billion, a P/E ratio of -5.92, a PEG ratio of 0.39 and a beta of 1.10.

Centene (NYSE:CNC - Get Free Report) last announced its quarterly earnings results on Monday, July 27th. The company reported $2.51 earnings per share for the quarter, topping the consensus estimate of $1.09 by $1.42. Centene had a negative net margin of 2.51% and a positive return on equity of 12.12%. The firm had revenue of $53.58 billion during the quarter, compared to analysts' expectations of $47.64 billion. During the same quarter in the prior year, the company earned ($0.16) EPS. The company's revenue was up 9.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Centene Corporation will post 4.89 EPS for the current year.

Insider Activity at Centene

In other Centene news, General Counsel Christopher Koster sold 56,500 shares of the firm's stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $66.90, for a total value of $3,779,850.00. Following the transaction, the general counsel owned 248,854 shares in the company, valued at approximately $16,648,332.60. This trade represents a 18.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 0.37% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on CNC shares. Barclays reaffirmed an "overweight" rating and set a $80.00 target price (up from $75.00) on shares of Centene in a research note on Wednesday, July 29th. Weiss Ratings restated a "sell (d)" rating on shares of Centene in a report on Friday, July 17th. Truist Financial upped their target price on Centene from $71.00 to $78.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Royal Bank Of Canada increased their target price on Centene from $70.00 to $71.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 9th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Centene in a research note on Friday, September 11th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $70.05.

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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