Centene (NYSE:CNC) Trading 3.5% Higher - Here's What Happened

Key Points

• Centene shares rose 3.5% to about $66.30, despite trading volume running 88% below the stock’s average daily volume.
• The company reported quarterly EPS of $2.51, well above the $1.09 consensus estimate, while revenue reached $53.58 billion and increased 9.9% year over year.
• Analysts maintain a consensus “Hold” rating with a $70.05 price target; meanwhile, Centene’s general counsel sold 56,500 shares at an average price of $66.90.

Shares of Centene Corporation (NYSE:CNC - Get Free Report) shot up 3.5% on Thursday . The stock traded as high as $68.21 and last traded at $66.2960. 678,899 shares changed hands during trading, a decline of 88% from the average daily volume of 5,765,694 shares. The stock had previously closed at $64.06.

Analysts Set New Price Targets

CNC has been the subject of several recent analyst reports. Raymond James Financial set a $75.00 price target on Centene in a report on Tuesday, July 7th. Robert W. Baird increased their price objective on shares of Centene from $46.00 to $66.00 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. Royal Bank Of Canada lifted their target price on shares of Centene from $70.00 to $71.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 9th. Weiss Ratings restated a "sell (d)" rating on shares of Centene in a research note on Friday, July 17th. Finally, Wells Fargo & Company set a $69.00 price objective on shares of Centene and gave the stock an "equal weight" rating in a research note on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have assigned 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 $70.05.

Centene Price Performance

The firm has a market capitalization of $32.64 billion, a PE ratio of -6.33, a P/E/G ratio of 0.41 and a beta of 1.10. The firm's fifty day moving average price is $65.53 and its 200 day moving average price is $54.76. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.71.

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 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 last year, the company posted ($0.16) earnings per share. The firm's revenue was up 9.9% compared to the same quarter last year. As a group, equities analysts forecast that Centene Corporation will post 4.89 earnings per share for the current year.

Insider Buying and Selling

In related news, General Counsel Christopher Koster sold 56,500 shares of Centene stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $66.90, for a total transaction of $3,779,850.00. Following the completion of the transaction, the general counsel directly owned 248,854 shares in the company, valued at approximately $16,648,332.60. This trade represents a 18.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.37% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Centene

Hedge funds and other institutional investors have recently made changes to their positions in the company. DV Equities LLC purchased a new stake in Centene during the fourth quarter worth $26,000. IFC & Insurance Marketing Inc. acquired a new position in shares of Centene in the fourth quarter worth about $28,000. SBI Securities Co. Ltd. boosted its stake in shares of Centene by 118.4% during the 4th quarter. SBI Securities Co. Ltd. now owns 749 shares of the company's stock worth $31,000 after acquiring an additional 406 shares in the last quarter. MidFirst Bank acquired a new stake in shares of Centene during the 2nd quarter valued at about $32,000. Finally, Bayban purchased a new position in shares of Centene in the 4th quarter valued at about $33,000. Institutional investors and hedge funds own 93.63% of the company's stock.

Centene Company Profile

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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