Centene (NYSE:CNC) Reaches New 1-Year High – Still a Buy?

Centene Corporation (NYSE:CNC)’s stock price reached a new 52-week high on Tuesday. The stock traded as high as $69.64 and last traded at $69.6360, with a volume of 2,477,674 shares changing hands. The stock had previously closed at $67.02.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on CNC. 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 report on Wednesday, July 29th. Morgan Stanley set a $66.00 price objective on shares of Centene in a research note on Wednesday, July 29th. TD Cowen reaffirmed a “hold” rating and set a $65.00 price objective (up from $47.00) on shares of Centene in a research report on Tuesday, July 14th. Barclays reissued an “overweight” rating and set a $80.00 price objective (up from $75.00) on shares of Centene in a research report on Wednesday, July 29th. Finally, Weiss Ratings upgraded shares of Centene from a “sell (d)” rating to a “sell (d+)” rating in a research note on Thursday, October 8th. Nine analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Centene has a consensus rating of “Hold” and a consensus target price of $70.05.

Centene Stock Performance

The firm has a market cap of $34.71 billion, a PE ratio of -6.72, a PEG ratio of 0.43 and a beta of 1.13. The business has a 50-day simple moving average of $65.21 and a 200 day simple moving average of $59.33. 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) last issued its earnings results on Monday, July 27th. The company reported $2.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $1.42. The company had revenue of $53.58 billion for the quarter, compared to the consensus estimate of $47.64 billion. Centene had a positive return on equity of 12.12% and a negative net margin of 2.51%. The firm’s quarterly revenue was up 9.9% on a year-over-year basis. During the same quarter last year, the company earned ($0.16) EPS. Equities research analysts forecast that Centene Corporation will post 4.89 EPS for the current year.

Insider Activity

In related news, General Counsel Christopher Koster sold 56,500 shares of the stock in a transaction dated 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 directly owned 248,854 shares of the company’s stock, valued at $16,648,332.60. This represents a 18.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.37% of the company’s stock.

Institutional Investors Weigh In On Centene

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in Centene in the second quarter valued at about $2,660,422,000. Wellington Management Group LLP lifted its position in shares of Centene by 423.0% during the second quarter. Wellington Management Group LLP now owns 13,301,215 shares of the company’s stock worth $853,805,000 after purchasing an additional 10,757,914 shares in the last quarter. Bank of America Corp DE purchased a new stake in Centene during the 2nd quarter worth $285,713,000. Deutsche Bank AG purchased a new stake in shares of Centene during the second quarter worth about $257,279,000. Finally, Legal & General Group Plc acquired a new stake in Centene during the 2nd quarter valued at approximately $244,463,000. Institutional investors own 93.63% of the company’s stock.

About Centene

Centene Corporation (NYSE:CNC) is a healthcare enterprise that provides health insurance and related services, primarily through government-sponsored programs. Its offerings include Medicaid plans, Medicare products, health plans sold through the Affordable Care Act marketplace, and services for military families through government-sponsored healthcare programs.

The company also provides pharmacy, behavioral health, specialty healthcare, care management and administrative services through various subsidiaries and partner organizations.