Centene Corporation [NYSE: CNC] loss -0.37% or -0.27 points to close at $73.61 with a heavy trading volume of 2531883 shares. The company report on July 1, 2021 that BetterInvesting™ Magazine Selects Amazon.com As “Growth” Stock and Centene As “Undervalued” For September 2021 Issue.
The Editorial Advisory and Securities Review Committee of BetterInvesting Magazine announced Amazon (NASDAQ: AMZN) as its “Stock to Study” and Centene (NYSE: CNC) is its “Undervalued Stock” in the September 2021 issue for investors’ informational and educational use.
“As we head into the holiday weekend, we are reminded that with freedom comes great opportunity. For nearly 70 years, we’ve assisted those who wish to learn how to invest and to enhance their education on the road to financial independence. From all of us at the National Association of Investors, we wish you a happy and safe Independence Day.”, said Ken Zendel, the chief executive officer of the National Association of Investors Corp. (NAIC), the parent organization of BetterInvesting.
It opened the trading session at $73.635, the shares rose to $73.74 and dropped to $72.19, the range by which the price of stock traded the whole day. The daily chart for CNC points out that the company has recorded 18.55% gains over the past six months. However, it is still -37.33% lower than its most recent low trading price.
If we look at the average trading volume of 4.34M shares, CNC reached to a volume of 2531883 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Centene Corporation [CNC]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CNC shares is $85.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CNC stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Wells Fargo have made an estimate for Centene Corporation shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on May 19, 2021. While these analysts kept the previous recommendation, Stephens raised their target price from $71 to $87. The new note on the price target was released on May 11, 2021, representing the official price target for Centene Corporation stock. Previously, the target price had yet another raise to $65, while Mizuho analysts kept a Neutral rating on CNC stock.
The Average True Range (ATR) for Centene Corporation is set at 1.47, with the Price to Sales ratio for CNC stock in the period of the last 12 months amounting to 0.37. The Price to Book ratio for the last quarter was 1.63, with the Price to Cash per share for the same quarter was set at 16.57. Price to Free Cash Flow for CNC in the course of the last twelve months was 8.72.
Trading performance analysis for CNC stock
Centene Corporation [CNC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.93. With this latest performance, CNC shares gained by 3.04% in over the last four-week period, additionally plugging by 18.55% over the last 6 months – not to mention a rise of 10.48% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CNC stock in for the last two-week period is set at 56.79, with the RSI for the last a single of trading hit 56.15, and the three-weeks RSI is set at 57.34 for Centene Corporation [CNC]. The present Moving Average for the last 50 days of trading for this stock 70.36, while it was recorded at 73.57 for the last single week of trading, and 64.43 for the last 200 days.
Centene Corporation [CNC]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Centene Corporation [CNC] shares currently have an operating margin of +3.36. Centene Corporation’s Net Margin is presently recorded at +1.63.
Return on Total Capital for CNC is now 10.45, given the latest momentum, and Return on Invested Capital for the company is 5.12. Return on Equity for this stock inclined to 9.44, with Return on Assets sitting at 3.26. When it comes to the capital structure of this company, Centene Corporation [CNC] has a Total Debt to Total Equity ratio set at 71.07. Additionally, CNC Total Debt to Total Capital is recorded at 41.54, with Total Debt to Total Assets ending up at 26.23. Long-Term Debt to Equity for the company is recorded at 69.90, with the Long-Term Debt to Total Capital now at 40.86.
Reflecting on the efficiency of the workforce at the company, Centene Corporation [CNC] managed to generate an average of $25,358 per employee.
Centene Corporation [CNC]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CNC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Centene Corporation go to 11.28%.
An analysis of insider ownership at Centene Corporation [CNC]
There are presently around $39,418 million, or 93.80% of CNC stock, in the hands of institutional investors. The top three institutional holders of CNC stocks are: VANGUARD GROUP INC with ownership of 61,703,882, which is approximately 0.206% of the company’s market cap and around 1.90% of the total institutional ownership; BLACKROCK INC., holding 44,444,266 shares of the stock with an approximate value of $3.27 billion in CNC stocks shares; and CAPITAL WORLD INVESTORS, currently with $2.63 billion in CNC stock with ownership of nearly -5.834% of the company’s market capitalization.
Positions in Centene Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 395 institutional holders increased their position in Centene Corporation [NYSE:CNC] by around 42,566,590 shares. Additionally, 332 investors decreased positions by around 43,781,337 shares, while 108 investors held positions by with 449,148,627 shares. The mentioned changes placed institutional holdings at 535,496,554 shares, according to the latest SEC report filing. CNC stock had 87 new institutional investments in for a total of 2,562,060 shares, while 65 institutional investors sold positions of 11,160,270 shares during the same period.