Latest news with #CenteneCorporation
Yahoo
3 hours ago
- Business
- Yahoo
Bear of the Day: Centene (CNC)
Centene Corporation (CNC), a giant of managed care expected to cross $175 billion in revenues this year, unexpectedly pulled its earnings guidance for 2025 on July 2. This change came after an unexpected shift in the dynamics of the health Insurance Marketplace, which could impact earnings more significantly than what was initially decision followed industry risk adjustment data from the independent actuarial firm Wakely, which analyzed 22 out of Centene's 29 Marketplace states, representing approximately 72% of its Marketplace membership. According to the company, these data showed higher-than-expected overall market morbidity and a slower pace of market is anticipating a shortfall of about $1.8 billion in net risk adjustment revenues, which would mean a $2.75 impact on adjusted diluted EPS for 2025. Although it does not have data from the other seven states, management anticipates a further decline in risk-adjusted revenues due to similar morbidity the revelation, Wall Street analysts slashed their EPS projection for this year, cutting the Zacks profit consensus in half from $7.29 to $3.55 and discounting more of the Good, the Bad, and the UglyDespite headwinds, CNC shared that the final 2024 risk-adjusted results from the Centers for Medicare and Medicaid Services aligned with their expectations, and its Medicare Advantage and Medicare PDP segments are performing better than its expectations in the second quarter of 2025. However, Medicaid is facing challenges due to rising costs in behavioral health, home care and expensive medications, particularly in states like New York and we look toward 2026, Centene is taking proactive steps to adjust its rates, aiming to account for a higher morbidity baseline. This adjustment is seen as a necessary move to help balance out potential losses. The company plans to make these pricing changes in the states where it conducts most of its marketplace business. The early refiling of 2026 rates by CNC suggests a more defensive pricing approach in the of many Wall Street investment banks, Wells Fargo downgraded CNC shares to Equal-Weight and cut their price target from $72 to $30.A close look at second-quarter earnings and data analysis is required to move forward. CNC's second-quarter 2025 results are slated to be released on Friday July 25. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Centene Corporation (CNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
4 hours ago
- Business
- Yahoo
Centene Corporation (CNC): A Bull Case Theory
We came across a bullish thesis on Centene Corporation on Waterboy's Substack. In this article, we will summarize the bulls' thesis on CNC. Centene Corporation's share was trading at $29.14 as of July 17th. CNC's trailing and forward P/E were 4.30 and 9.13, respectively according to Yahoo Finance. A healthcare professional discussing a treatment plan with a patient in an outpatient clinic. Centene Corporation, a major player in managed care, has been at the center of the recent rout in health insurance stocks, driven by surging costs, higher utilization, and fraud allegations. Sentiment worsened after President Trump signed the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, which aims to cut Medicaid spending by $1 trillion over the next decade through tighter eligibility and shorter enrollment periods, a material headwind for Centene given its Medicaid-heavy business. Shares have been punished, including a one-day 40% plunge after a $1.8 billion downward adjustment in risk-adjustment payments forced management to withdraw its 2025 EPS guidance, though the balance sheet can absorb the hit, and premiums will likely reprice. Founded in 1984 and built through aggressive acquisitions, Centene now serves 25.8 million members and generated $158.1 billion in premiums in 2024, primarily from Medicaid. Though net profit margins hover around 2%, profits are underpinned by $19.7 billion of investments earning 5.2% and a capital-light model that delivered a 14.2% ROE last year. Five-year average free cash flow of $4 billion implies a mere 4.7x EV/FCF multiple, and management retains $2.23 billion under its $10 billion buyback program, capable of retiring nearly 15% of shares at depressed valuations. While regulatory uncertainty clouds earnings power, most downside appears priced in, leaving a margin of safety rooted in Centene's asset base, sticky contracts, and cash generation. EPS growth will likely slow, but the stock's collapse offers contrarians a chance to buy a resilient franchise at crisis-level multiples with substantial upside if political headwinds ease. Previously, we covered a bullish thesis on Molina Healthcare, Inc. (MOH) by Long-Term Pick in February 2025, which highlighted Marketplace growth and upside from new Medicaid and Medicare contracts despite earnings pressure. The company's stock has depreciated about 23.37% since our coverage, as higher medical costs hit margins. The thesis still stands. Waterboy shares a similar view on Centene Corporation but emphasizes its margin of safety from depressed valuation and a resilient balance sheet. Centene Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held CNC at the end of the first quarter which was 72 in the previous quarter. While we acknowledge the potential of CNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Centene (CNC) Falls 11.1% on Investor Caution Ahead of Q2
We recently published Centene Corporation (NYSE:CNC) is one of this week's top performers. Centene fell by 11.1 percent week-on-week, from $31.44 on July 11 to $27.95 last Friday—a new all-time low, as investors turned cautious ahead of its second quarter earnings results, further dampened by one of its peers' dismal earnings performance. During the week, its fellow insurer Elevance Health, reported a 24.2-percent drop in net income during the second quarter of the year and updated its outlook to reflect elevated medical cost trends under the Affordable Care Act and slower rate alignment in Medicaid, both of which are also being offered by Centene Corporation (NYSE:CNC). Last month, Centene Corporation (NYSE:CNC) withdrew its 2025 earnings forecast due to an expected slump in its revenues from commercial plans under the ACA or Obamacare. The withdrawal triggered a review from credit ratings issuer S&P Global Ratings, saying that it is likely to set the company's status to 'junk.' A doctor holding a clipboard in a hospital ward, discussing patient treatment plan with the nurses. 'With the removal of earnings guidance, we have less immediate clarity and confidence on the company's capital adequacy trajectory, as well as the overall strength of its business and execution capabilities,' S&P said. While we acknowledge the potential of CNC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 days ago
- Business
- Business Wire
INVESTOR DEADLINE: Robbins Geller Rudman & Dowd LLP Announces that Centene Corporation (CNC) Investors with Substantial Losses Have Opportunity to Lead Investor Class Action Lawsuit
SAN DIEGO--(BUSINESS WIRE)-- Robbins Geller Rudman & Dowd LLP announces that the Centene class action lawsuit – captioned Lunstrum v. Centene Corporation, No. 25-cv-05659, and pending in the Southern District of New York – seeks to represent purchasers or acquirers of Centene Corporation (NYSE: CNC) securities and charges Centene as well as certain of Centene's top executives with violations of the Securities Exchange Act of 1934. If you suffered substantial losses and wish to serve as lead plaintiff of the Centene class action lawsuit, please provide your information here: You can also contact attorneys J.C. Sanchez or of Robbins Geller by calling 800/449-4900 or via e-mail at info@ Lead plaintiff motions for the Centene class action lawsuit must be filed with the court no later than September 8, 2025. CASE ALLEGATIONS: Centene is a healthcare enterprise that provides fully integrated services to government-sponsored and commercial healthcare programs, focusing on underinsured and uninsured individuals. The Centene class action lawsuit alleges that defendants throughout the Class Period created the false impression that they possessed reliable information pertaining to Centene's projected revenue outlook and anticipated growth while also touting enrollment rates and low morbidity. In truth, Centene's optimistic reports and promises regarding Centene's inflated guidance fell short of reality when a preliminary analysis of over two-thirds of Centene's marketplace share showed lower-than-anticipated enrollment and increased aggregate market morbidity, according to the complaint. The Centene class action lawsuit further alleges that, on July 1, 2025, Centene withdrew its 2025 guidance. Particularly, following an analysis of the 2025 Health Insurance Marketplace, Centene's overall market growth across 22 states, or 72% of Centene's marketplace membership, was lower than expected, according to the complaint. Centene also stated that this preliminary analysis resulted in a reduction of its previously issued guidance to approximately $1.8 billion or an adjusted diluted EPS of $2.75, the Centene class action lawsuit alleges. On this news, the price of Centene stock fell by more than 40%. THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Centene securities during the class period to seek appointment as lead plaintiff in the Centene class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Centene class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Centene class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Centene class action lawsuit. ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we recovered over $2.5 billion for investors in securities-related class action cases – more than the next five law firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world, and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information: Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices.
Associated Press
3 days ago
- Business
- Associated Press
ROSEN, A TOP RANKED LAW FIRM, Encourages Centene Corporation Investors to Secure Counsel Before Important Deadline in Securities Class Action
New York, New York--(Newsfile Corp. - July 20, 2025) - WHY: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of securities of Centene Corporation (NYSE: CNC) between December 12, 2024 and June 30, 2025, both dates inclusive (the 'Class Period'). A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than September 8, 2025. SO WHAT: If you purchased Centene common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO NEXT: To join the Centene class action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than September 8, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. DETAILS OF THE CASE: According to the lawsuit, defendants throughout the Class Period provided investors with material information concerning Centene's expected revenue guidance and adjusted diluted earnings per share ('EPS') for the 2025 fiscal year. Defendants' statements included, among other things, confidence in Centene's enrollment and morbidity rates, as well as strong retention rates in Centene's Medicare business. Defendants provided these overwhelmingly positive statements to investors while simultaneously disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Centene's enrollment and morbidity rates. To join the Centene class action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome. ------------------------------- Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 [email protected] To view the source version of this press release, please visit
