Centene (NYSE:CNC) Hits New 12-Month High - Here's Why

Key Points

• Centene shares reached a new 52-week high of $71.71, supported by favorable analyst actions, including Barclays raising its price target to $80. However, the overall analyst consensus remains “Hold,” with a $70.05 target.
• Centene reported a strong quarterly performance, with EPS of $2.51 versus the $1.09 estimate and revenue of $53.58 billion, up 9.9% year over year.
• General Counsel Christopher Koster sold 56,500 shares worth approximately $3.78 million, while institutional investors and hedge funds own 93.63% of the company’s stock.

Shares of Centene Corporation (NYSE:CNC - Get Free Report) hit a new 52-week high during trading on Wednesday. The stock traded as high as $71.71 and last traded at $70.1980, with a volume of 167,186 shares traded. The stock had previously closed at $70.81.

Analyst Upgrades and Downgrades

CNC has been the subject of a number of research analyst reports. Wall Street Zen upgraded Centene from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 18th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Centene in a report on Friday, October 9th. Barclays reissued an "overweight" rating and set a $80.00 price target (up from $75.00) on shares of Centene in a research report on Wednesday, July 29th. Royal Bank Of Canada raised their price objective on Centene from $70.00 to $71.00 and gave the stock a "sector perform" rating in a report on Thursday, July 9th. Finally, Robert W. Baird lifted their price objective on Centene from $46.00 to $66.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Nine research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Centene presently has an average rating of "Hold" and a consensus price target of $70.05.

Centene Stock Down 1.0%

The firm's fifty day moving average is $65.58 and its two-hundred day moving average is $60.38. The firm has a market cap of $34.64 billion, a price-to-earnings ratio of -6.71, a P/E/G ratio of 0.43 and a beta of 1.13. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.15 and a quick ratio of 1.15.

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

Insiders Place Their Bets

In related news, General Counsel Christopher Koster sold 56,500 shares of Centene stock in a transaction that occurred 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 completion of the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.37% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CNC. Silicon Valley Capital Partners acquired a new stake in shares of Centene during the second quarter worth about $25,000. North Point Portfolio Managers Corp OH purchased a new stake in shares of Centene in the 3rd quarter valued at about $25,000. Toth Financial Advisory Corp acquired a new stake in shares of Centene in the 3rd quarter valued at about $30,000. MidFirst Bank acquired a new stake in shares of Centene in the 2nd quarter valued at about $32,000. Finally, Fiduciary Financial Advisors purchased a new position in Centene during the 2nd quarter worth approximately $34,000. 93.63% of the stock is currently owned by institutional investors and hedge funds.

About Centene

Centene Corporation is a diversified healthcare enterprise that provides government-sponsored and commercial health insurance programs and related healthcare services. The company's offerings are primarily focused on Medicaid, Medicare, and health insurance marketplace plans, with an emphasis on serving individuals and families who may have limited access to traditional healthcare coverage.

Centene operates Medicaid health plans through state-based contracts and offers Medicare Advantage, Medicare prescription drug, and Medicare Supplement products through its Wellcare brand.

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