Centene (NYSE:CNC) Updates FY 2022 Earnings Guidance

Centene (NYSE:CNCGet Rating) issued an update on its FY 2022 earnings guidance on Thursday morning. The company provided earnings per share guidance of $5.60-$5.75 for the period, compared to the consensus earnings per share estimate of $5.59. The company issued revenue guidance of $141.60 billion-$143.60 billion, compared to the consensus revenue estimate of $142.59 billion.

Centene Price Performance

Shares of CNC traded up $0.08 during mid-day trading on Friday, reaching $93.05. 1,942,305 shares of the stock traded hands, compared to its average volume of 2,893,290. The firm has a fifty day moving average price of $85.56 and a 200 day moving average price of $84.09. The company has a market cap of $53.98 billion, a price-to-earnings ratio of 29.54, a price-to-earnings-growth ratio of 1.18 and a beta of 0.50. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.70. Centene has a 1 year low of $59.67 and a 1 year high of $94.58.

Centene (NYSE:CNCGet Rating) last announced its earnings results on Tuesday, July 26th. The company reported $1.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.59 by $0.18. Centene had a net margin of 1.35% and a return on equity of 12.92%. The company had revenue of $35.94 billion during the quarter, compared to analyst estimates of $35.56 billion. During the same period in the previous year, the business earned $1.25 earnings per share. The firm’s quarterly revenue was up 15.8% compared to the same quarter last year. As a group, equities research analysts predict that Centene will post 5.7 earnings per share for the current year.

Centene announced that its board has initiated a stock repurchase plan on Friday, June 17th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to repurchase up to 6.3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages have recently commented on CNC. Morgan Stanley lowered their price objective on shares of Centene from $112.00 to $103.00 and set an overweight rating for the company in a research note on Thursday, June 23rd. Bank of America downgraded shares of Centene from a buy rating to a neutral rating and lowered their price objective for the company from $95.00 to $90.00 in a research note on Thursday, May 26th. Stephens upped their price objective on shares of Centene to $110.00 and gave the company an outperform rating in a research note on Wednesday, July 27th. Oppenheimer increased their price target on shares of Centene to $110.00 and gave the stock an outperform rating in a research note on Wednesday, July 27th. Finally, Credit Suisse Group set a $97.00 price target on shares of Centene in a research note on Tuesday, July 19th. Four equities research analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Centene currently has an average rating of Moderate Buy and an average price target of $97.50.

Insider Buying and Selling

In related news, Director Richard A. Gephardt sold 3,300 shares of the firm’s stock in a transaction that occurred on Tuesday, June 21st. The shares were sold at an average price of $80.01, for a total value of $264,033.00. Following the sale, the director now owns 37,260 shares in the company, valued at $2,981,172.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other Centene news, Director Richard A. Gephardt sold 3,300 shares of the stock in a transaction that occurred on Tuesday, June 21st. The shares were sold at an average price of $80.01, for a total value of $264,033.00. Following the transaction, the director now directly owns 37,260 shares in the company, valued at $2,981,172.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard A. Gephardt sold 10,220 shares of the stock in a transaction that occurred on Thursday, June 23rd. The stock was sold at an average price of $84.03, for a total transaction of $858,786.60. Following the completion of the transaction, the director now owns 27,040 shares in the company, valued at $2,272,171.20. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 28,200 shares of company stock worth $2,458,274. 1.50% of the stock is owned by insiders.

Institutional Trading of Centene

Several institutional investors and hedge funds have recently modified their holdings of the company. Charles Schwab Investment Management Inc. increased its holdings in Centene by 3.5% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,226,201 shares of the company’s stock valued at $271,614,000 after acquiring an additional 109,994 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in Centene by 19.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,862,651 shares of the company’s stock valued at $156,816,000 after acquiring an additional 305,981 shares during the last quarter. Prudential Financial Inc. grew its stake in shares of Centene by 132.7% in the 1st quarter. Prudential Financial Inc. now owns 1,552,890 shares of the company’s stock worth $130,738,000 after buying an additional 885,683 shares in the last quarter. Mackenzie Financial Corp grew its stake in shares of Centene by 5.1% in the 1st quarter. Mackenzie Financial Corp now owns 1,113,161 shares of the company’s stock worth $93,717,000 after buying an additional 54,126 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its stake in shares of Centene by 46.8% in the 1st quarter. The Manufacturers Life Insurance Company now owns 651,636 shares of the company’s stock worth $55,303,000 after buying an additional 207,643 shares in the last quarter. 92.32% of the stock is currently owned by institutional investors.

Centene Company Profile

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Centene Corporation operates as a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. Its Managed Care segment offers health plan coverage to individuals through government subsidized programs, including Medicaid, the State children's health insurance program, long-term services and support, foster care, and medicare-medicaid plans, which cover dually eligible individuals, as well as aged, blind, or disabled programs.

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Earnings History and Estimates for Centene (NYSE:CNC)

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