Zacks Research Weighs in on Centene's Q2 Earnings (NYSE:CNC)

Key Points

• Zacks Research has revised Centene's Q2 2027 earnings per share (EPS) estimate down to $1.42, previously forecasted at $1.58, as analysts continue to assess the company's financial outlook.
• Centene reported a loss of ($0.16) EPS for its last quarter, significantly missing the consensus estimate of $0.23, despite a year-over-year revenue increase of 22.4%.
• Recent stock ratings show a mixed outlook, with one analyst issuing a sell rating, 14 hold ratings, and three buy ratings, while the average price target has dropped to $42.20.

Centene Corporation (NYSE:CNC - Free Report) - Research analysts at Zacks Research dropped their Q2 2027 earnings per share (EPS) estimates for shares of Centene in a research note issued to investors on Wednesday, August 13th. Zacks Research analyst K. Dey now expects that the company will post earnings per share of $1.42 for the quarter, down from their prior forecast of $1.58. The consensus estimate for Centene's current full-year earnings is $6.86 per share.

Other analysts also recently issued research reports about the company. Guggenheim reissued a "neutral" rating on shares of Centene in a research note on Tuesday, April 29th. Barclays dropped their price target on Centene from $65.00 to $45.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 2nd. Truist Financial dropped their price target on Centene from $42.00 to $35.00 and set a "buy" rating on the stock in a research note on Monday, July 28th. TD Cowen reissued a "hold" rating and issued a $33.00 price target (down previously from $73.00) on shares of Centene in a research note on Monday, July 21st. Finally, Wells Fargo & Company downgraded Centene from an "overweight" rating to an "equal weight" rating and lowered their target price for the company from $72.00 to $30.00 in a research report on Wednesday, July 23rd. One investment analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat.com, Centene has an average rating of "Hold" and an average price target of $42.20.

Centene Trading Up 4.5%

Shares of NYSE:CNC traded up $1.21 during midday trading on Friday, hitting $28.14. The company had a trading volume of 7,204,490 shares, compared to its average volume of 8,479,592. Centene has a 12 month low of $25.08 and a 12 month high of $80.59. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 0.64. The stock has a market cap of $13.82 billion, a price-to-earnings ratio of 6.98, a PEG ratio of 1.11 and a beta of 0.40. The firm has a fifty day simple moving average of $38.00 and a 200 day simple moving average of $52.25.

Centene (NYSE:CNC - Get Free Report) last announced its quarterly earnings data on Friday, July 25th. The company reported ($0.16) EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.39). Centene had a net margin of 1.15% and a return on equity of 9.57%. The firm had revenue of $48.74 billion during the quarter, compared to the consensus estimate of $44.71 billion. During the same quarter in the previous year, the business posted $2.42 earnings per share. The firm's quarterly revenue was up 22.4% on a year-over-year basis.

Institutional Trading of Centene

A number of institutional investors have recently bought and sold shares of the company. Synovus Financial Corp increased its stake in Centene by 5.3% in the 4th quarter. Synovus Financial Corp now owns 5,216 shares of the company's stock valued at $316,000 after buying an additional 264 shares during the last quarter. Guggenheim Capital LLC increased its stake in Centene by 2.8% in the 4th quarter. Guggenheim Capital LLC now owns 89,818 shares of the company's stock valued at $5,441,000 after buying an additional 2,433 shares during the last quarter. United Capital Financial Advisors LLC increased its stake in Centene by 3.7% in the 4th quarter. United Capital Financial Advisors LLC now owns 9,691 shares of the company's stock valued at $587,000 after buying an additional 348 shares during the last quarter. Wasatch Advisors LP increased its stake in shares of Centene by 38.2% during the 4th quarter. Wasatch Advisors LP now owns 52,500 shares of the company's stock worth $3,180,000 after purchasing an additional 14,500 shares during the last quarter. Finally, Canada Pension Plan Investment Board increased its stake in shares of Centene by 1.6% during the 4th quarter. Canada Pension Plan Investment Board now owns 1,107,296 shares of the company's stock worth $67,080,000 after purchasing an additional 16,996 shares during the last quarter. Institutional investors own 93.63% of the company's stock.

Insider Buying and Selling

In related news, CEO Sarah London purchased 19,230 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was acquired at an average cost of $25.50 per share, for a total transaction of $490,365.00. Following the completion of the purchase, the chief executive officer owned 845,275 shares in the company, valued at approximately $21,554,512.50. This represents a 2.33% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Theodore R. Samuels II purchased 9,000 shares of the business's stock in a transaction that occurred on Monday, July 28th. The stock was bought at an average price of $27.62 per share, with a total value of $248,580.00. Following the completion of the purchase, the director owned 32,000 shares of the company's stock, valued at $883,840. This trade represents a 39.13% increase in their position. The disclosure for this purchase can be found here. Insiders own 0.36% of the company's stock.

Centene Company Profile

Centene Corporation operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, commercial organizations, and military families in the United States. The company operates through Medicaid, Medicare, Commercial, and Other segments. The Medicaid segment offers health plan coverage, including medicaid expansion, aged, blind, disabled, children's health insurance program, foster care, medicare-medicaid plans, long-term services and support.

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