Centene (NYSE:CNC) Shares Gap Down - Here's Why

Centene Co. (NYSE:CNC - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $58.48, but opened at $56.65. Centene shares last traded at $57.30, with a volume of 741,972 shares.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on CNC. StockNews.com downgraded Centene from a "strong-buy" rating to a "buy" rating in a research report on Thursday, February 6th. Argus lowered shares of Centene from a "buy" rating to a "hold" rating in a report on Thursday, February 6th. Truist Financial cut their price objective on Centene from $89.00 to $84.00 and set a "buy" rating on the stock in a research report on Friday, December 13th. Wells Fargo & Company decreased their price target on Centene from $76.00 to $72.00 and set an "overweight" rating for the company in a report on Friday, February 14th. Finally, JPMorgan Chase & Co. reiterated an "overweight" rating and issued a $75.00 price target (down from $80.00) on shares of Centene in a research note on Tuesday, December 17th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and ten have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $79.92.

Centene Price Performance

The company has a current ratio of 1.11, a quick ratio of 1.10 and a debt-to-equity ratio of 0.70. The company's 50 day moving average price is $61.03 and its 200 day moving average price is $65.71. The company has a market cap of $29.09 billion, a price-to-earnings ratio of 9.41, a PEG ratio of 0.80 and a beta of 0.45.

Centene (NYSE:CNC - Get Free Report) last released its earnings results on Tuesday, February 4th. The company reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.49 by $0.31. Centene had a return on equity of 13.85% and a net margin of 2.03%. The company had revenue of $40.81 billion for the quarter, compared to analysts' expectations of $38.78 billion. During the same quarter in the previous year, the firm posted $0.45 EPS. The firm's quarterly revenue was up 3.4% on a year-over-year basis. Equities research analysts forecast that Centene Co. will post 6.86 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director H James Dallas purchased 1,693 shares of the company's stock in a transaction dated Monday, December 16th. The stock was acquired at an average price of $59.01 per share, for a total transaction of $99,903.93. Following the completion of the transaction, the director now directly owns 1,693 shares in the company, valued at $99,903.93. This represents a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Theodore R. Samuels II purchased 5,000 shares of the stock in a transaction dated Friday, December 13th. The stock was acquired at an average price of $58.86 per share, for a total transaction of $294,300.00. Following the completion of the transaction, the director now directly owns 23,000 shares of the company's stock, valued at approximately $1,353,780. The trade was a 27.78 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders have purchased 23,693 shares of company stock worth $1,409,954. Corporate insiders own 0.33% of the company's stock.

Hedge Funds Weigh In On Centene

Institutional investors and hedge funds have recently modified their holdings of the company. Stratos Wealth Partners LTD. lifted its holdings in Centene by 4.1% in the 4th quarter. Stratos Wealth Partners LTD. now owns 4,094 shares of the company's stock worth $248,000 after buying an additional 163 shares in the last quarter. Mount Yale Investment Advisors LLC grew its position in Centene by 2.1% in the 3rd quarter. Mount Yale Investment Advisors LLC now owns 8,082 shares of the company's stock valued at $608,000 after buying an additional 167 shares in the last quarter. Capital Advisors Ltd. LLC lifted its position in Centene by 75.3% in the fourth quarter. Capital Advisors Ltd. LLC now owns 412 shares of the company's stock worth $25,000 after purchasing an additional 177 shares during the period. Private Trust Co. NA raised its position in Centene by 23.7% in the fourth quarter. Private Trust Co. NA now owns 956 shares of the company's stock worth $58,000 after acquiring an additional 183 shares in the last quarter. Finally, Howard Capital Management Inc. increased its holdings in shares of Centene by 5.4% in the fourth quarter. Howard Capital Management Inc. now owns 3,591 shares of the company's stock valued at $218,000 after buying an additional 184 shares in the last quarter. Hedge funds and other institutional investors own 93.63% of the company's stock.

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.