Centene (NYSE:CNC) Trading 6.7% Higher on Earnings Beat

Centene Co. (NYSE:CNC) shares were up 6.7% during trading on Friday following a stronger than expected earnings report. The company traded as high as $72.50 and last traded at $71.94. Approximately 2,053,804 shares were traded during trading, a decline of 40% from the average daily volume of 3,413,039 shares. The stock had previously closed at $67.40.

The company reported $2.42 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.62. Centene had a net margin of 1.76% and a return on equity of 14.19%. The company had revenue of $39.84 billion during the quarter, compared to the consensus estimate of $36.83 billion. During the same period last year, the firm earned $2.10 earnings per share. Centene’s revenue was up 5.9% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Centene from $81.00 to $82.00 and gave the company a “hold” rating in a report on Tuesday, April 30th. Robert W. Baird began coverage on shares of Centene in a report on Thursday, May 30th. They set a “neutral” rating and a $83.00 price objective on the stock. Stephens restated an “equal weight” rating and issued a $83.00 target price on shares of Centene in a research note on Thursday, May 30th. Cantor Fitzgerald reiterated an “overweight” rating and set a $90.00 price target on shares of Centene in a research note on Tuesday. Finally, Baird R W upgraded Centene to a “hold” rating in a research note on Thursday, May 30th. Nine research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $83.93.

Insider Activity at Centene

In other Centene news, President Kenneth J. Fasola sold 8,000 shares of the business’s stock in a transaction that occurred on Monday, May 13th. The stock was sold at an average price of $77.62, for a total transaction of $620,960.00. Following the completion of the sale, the president now directly owns 300,357 shares in the company, valued at approximately $23,313,710.34. The transaction was disclosed in a document filed with the SEC, which is available through this link. In related news, Director Christopher J. Coughlin sold 878 shares of the company’s stock in a transaction dated Tuesday, May 14th. The shares were sold at an average price of $76.75, for a total transaction of $67,386.50. Following the completion of the sale, the director now owns 25,504 shares of the company’s stock, valued at approximately $1,957,432. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, President Kenneth J. Fasola sold 8,000 shares of the business’s stock in a transaction that occurred on Monday, May 13th. The stock was sold at an average price of $77.62, for a total value of $620,960.00. Following the transaction, the president now owns 300,357 shares in the company, valued at $23,313,710.34. The disclosure for this sale can be found here. 0.33% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CNC. Allspring Global Investments Holdings LLC lifted its stake in shares of Centene by 30.5% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 585,995 shares of the company’s stock valued at $38,851,000 after purchasing an additional 136,970 shares during the last quarter. State of Michigan Retirement System increased its position in shares of Centene by 1.6% during the second quarter. State of Michigan Retirement System now owns 168,227 shares of the company’s stock valued at $11,153,000 after acquiring an additional 2,700 shares during the last quarter. Bank of New York Mellon Corp lifted its stake in Centene by 0.5% during the 2nd quarter. Bank of New York Mellon Corp now owns 5,491,968 shares of the company’s stock worth $364,117,000 after acquiring an additional 25,595 shares in the last quarter. Cypress Capital Group grew its position in Centene by 192.8% in the 2nd quarter. Cypress Capital Group now owns 13,610 shares of the company’s stock valued at $902,000 after acquiring an additional 8,962 shares in the last quarter. Finally, Independence Bank of Kentucky lifted its position in shares of Centene by 459.2% during the second quarter. Independence Bank of Kentucky now owns 1,096 shares of the company’s stock worth $73,000 after purchasing an additional 900 shares in the last quarter. 93.63% of the stock is currently owned by institutional investors and hedge funds.

Centene Stock Up 8.0 %

The business’s fifty day moving average is $69.13 and its two-hundred day moving average is $73.79. The stock has a market cap of $38.83 billion, a price-to-earnings ratio of 14.22, a PEG ratio of 0.89 and a beta of 0.50. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.66.

About Centene

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.