JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Centene (NYSE:CNC) Stock

Key Points

• JPMorgan raised its price target on Centene to $52 from $41 while maintaining a "neutral" rating, with the new target implying about a 4.5% downside from the current share price.
• Analysts are mixed: MarketBeat shows a consensus "Hold" rating with an average price target of $53.82, even as several firms bumped targets (Wells Fargo to $56, Deutsche Bank to $53) and the breakdown is six Buys, eleven Holds and two Sells.
• Centene recently beat Q1 estimates, reporting EPS of $3.37 (vs. $2.23 estimate) and revenue of $49.94 billion (vs. $47.53 billion), though the company still posted a negative net margin (-3.25%).

Centene (NYSE:CNC - Get Free Report) had its target price increased by equities research analysts at JPMorgan Chase & Co. from $41.00 to $52.00 in a research note issued to investors on Tuesday,MarketScreener reports. The firm currently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price objective indicates a potential downside of 4.48% from the company's current price.

Several other equities research analysts have also recently weighed in on the company. Weiss Ratings restated a "sell (d)" rating on shares of Centene in a report on Monday, April 20th. Wells Fargo & Company boosted their price objective on Centene from $44.00 to $56.00 and gave the company an "equal weight" rating in a research report on Friday. Wall Street Zen upgraded shares of Centene from a "hold" rating to a "buy" rating in a report on Saturday. Mizuho upped their price target on shares of Centene from $41.00 to $50.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. Finally, Deutsche Bank Aktiengesellschaft increased their price target on shares of Centene from $39.00 to $53.00 and gave the company a "hold" rating in a research report on Wednesday, April 29th. Six investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $53.82.

Centene Price Performance

CNC stock opened at $54.44 on Tuesday. The firm has a market cap of $26.88 billion, a P/E ratio of -4.14, a P/E/G ratio of 1.03 and a beta of 1.06. The firm's fifty day moving average is $38.91 and its 200 day moving average is $39.49. Centene has a 52 week low of $25.08 and a 52 week high of $64.15. 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 (NYSE:CNC - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported $3.37 earnings per share 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 business had revenue of $49.94 billion during the quarter, compared to the consensus estimate of $47.53 billion. During the same period in the previous year, the firm posted $2.90 earnings per share. The firm's revenue for the quarter was up 7.1% on a year-over-year basis. Research analysts predict that Centene will post 3.46 earnings per share for the current year.

Institutional Trading of Centene

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Addison Advisors LLC boosted its holdings in Centene by 455.6% in the third quarter. Addison Advisors LLC now owns 739 shares of the company's stock valued at $26,000 after acquiring an additional 606 shares in the last quarter. DV Equities LLC bought a new position in Centene in the 4th quarter worth $26,000. Mowery & Schoenfeld Wealth Management LLC purchased a new stake in shares of Centene in the 3rd quarter worth about $27,000. IFC & Insurance Marketing Inc. bought a new stake in shares of Centene during the 4th quarter valued at about $28,000. Finally, SBI Securities Co. Ltd. increased its position in shares of Centene by 118.4% during the fourth quarter. SBI Securities Co. Ltd. now owns 749 shares of the company's stock valued at $31,000 after buying an additional 406 shares during the period. Hedge funds and other institutional investors own 93.63% of the company's stock.

About Centene

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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