Centene (NYSE:CNC) Hits New 1-Year High - Here's Why

Key Points

• Centene shares hit a new 52-week high of $69.58, trading up 4.6% from the prior close, with a market capitalization of approximately $34.33 billion.
• The company significantly exceeded quarterly expectations, reporting EPS of $2.51 versus the $1.09 consensus and revenue of $53.58 billion versus $47.64 billion expected. Revenue increased 9.9% year over year.
• Analyst sentiment is mixed but improving: Argus and Zacks upgraded the stock, while Truist raised its price target to $78; the overall consensus remains “Hold” with a $70.05 target price.

Shares of Centene Corporation (NYSE:CNC - Get Free Report) hit a new 52-week high during trading on Monday . The stock traded as high as $69.58 and last traded at $69.5220, with a volume of 2269238 shares trading hands. The stock had previously closed at $66.42.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Morgan Stanley set a $66.00 price objective on shares of Centene in a report on Wednesday, July 29th. Argus raised shares of Centene from a "hold" rating to a "buy" rating and set a $80.00 target price for the company in a research report on Tuesday, August 11th. Truist Financial raised their price objective on shares of Centene from $71.00 to $78.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Zacks Research upgraded Centene from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 29th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Centene in a research report on Friday, July 17th. One investment 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 given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $70.05.

Centene Trading Up 4.6%

The company has a debt-to-equity ratio of 0.71, a current ratio of 1.15 and a quick ratio of 1.15. The business's 50 day simple moving average is $65.45 and its 200 day simple moving average is $55.07. The stock has a market cap of $34.33 billion, a P/E ratio of -6.65, a PEG ratio of 0.42 and a beta of 1.10.

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

Insider Activity at Centene

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

Institutional Trading of Centene

Large investors have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC boosted its holdings in shares of Centene by 11.1% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 37,577 shares of the company's stock worth $2,412,000 after acquiring an additional 3,760 shares in the last quarter. National Pension Service increased its holdings in Centene by 353.0% during the 2nd quarter. National Pension Service now owns 939,674 shares of the company's stock valued at $60,318,000 after purchasing an additional 732,259 shares in the last quarter. Cidel Asset Management Inc. raised its position in Centene by 9.1% in the 2nd quarter. Cidel Asset Management Inc. now owns 27,321 shares of the company's stock valued at $1,754,000 after purchasing an additional 2,271 shares during the last quarter. NorthRock Partners LLC bought a new stake in shares of Centene during the second quarter worth $209,000. Finally, Arizona State Retirement System increased its stake in shares of Centene by 5.6% in the second quarter. Arizona State Retirement System now owns 140,997 shares of the company's stock valued at $9,051,000 after buying an additional 7,471 shares in the last quarter. 93.63% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.