Is Centene Corporation (CNC) Stock Cheap Or Risky?

As of Friday close, Centene Corporation’s (NYSE:CNC) stock was up $1.09, moving up 1.34 percent to $82.32. The average number of shares traded per day over the past five days has been 3,103,540 shares. 2 times new highs have been achieved over the past 5 days, with a -$1.71 fall in that time frame. In the last twenty days, the average volume was 2,925,865, while in the previous 50 days, it was 2,772,622.

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Since last month, CNC stock retreated -4.51%. Shares of the company fell to $78.13 on 05/02/22, the lowest level in the past month. A 52-week high of $89.92 was reached on 04/21/22 after having rallying from a 52-week low of $59.67. Since the beginning of this year, CNC’s stock price has dropped by -0.10% or -$0.08, and marked a new high 10 times. However, the stock has declined by -8.45% since its 52-week high.

Centene Corporation (CNC) last reported insider trading activity 15 days ago on Apr 29. Dallas H James, the Director of the company, purchased of 3,065 shares for $81.75 on Apr 29. It resulted in a $250,564 investment by the insider. COUGHLIN CHRISTOPHER J added 12,000 shares at an average price of $81.37 on Apr 29. The insider now owns 15,865 shares following the transaction. On Apr 29, EVP, Chief Admin. Officer BAGLEY SHANNON sold 8,000 shares at $80.99 apiece. The transaction was valued at $647,920.

Valuation Metrics

Right now, Centene Corporation (CNC) has a P/E ratio of about 32.65. The stock’s beta is 0.52. Besides these, the trailing price-to-sales (P/S) ratio of 0.36, the price-to-book (PB) ratio of 1.77, and the price-to-cash flow ratio of 11.18 may also be considered.

Financial Health

According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.69, and the total debt-to-equity ratio was 0.70. In the year ended March 30, operating margins totaled 1.70%. Based on annual data, CNC earned $14.2 billion in gross profit and brought in $125.98 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 3.40%. Return on equity (ROE) for the past 12 months was 5.60%.

In Centene Corporation’s quarter-end financial report for March 30, it reported total debt of $18.64 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CNC’s revenue rose 19.37% to $32.57 billion during the quarter, while net income inched up to $37.19 billion. While analysts expected Centene Corporation to report $1.68 quarterly earnings, the actual figure was $1.83 per share, beating the consensus estimate by 8.90%. During the quarter, the company generated $1.64 billion in EBITDA. The liabilities of Centene Corporation were 55.59 billion at the end of its most recent quarter ended March 30, and its total debt was $22.67 billion. The value of shareholders’ equity is $584.89 million.

Technical Picture

This quick technical analysis looks at Centene Corporation’s (CNC) price momentum. With a historical volatility rate of 39.39%, the RSI 9-day stood at 50.04% on 13 May.

With respect to its five-day moving average, the current Centene Corporation price is down by -2.03% percent or -$1.71. At present, CNC shares trade -4.88% below its 20-day simple moving average and -0.12% percent below its 100-day simple moving average. However, the stock is currently trading approximately -2.90% below its SMA50 and +19.17% above its SMA200.

Stochastic coefficient K was 40.17% and Stochastic coefficient D was 28.46%, while ATR was 3.00. Given the Stochastic reading of 53.11% for the 14-day period, the RSI (14) reading has been calculated as 48.36%. As of today, the MACD Oscillator reading stands at -0.32, while the 14-day reading stands at 0.03.

With a median target price of $96.00, the current consensus forecast for the stock is $82.00 – $112.00. Based on these forecasts, analysts predict Centene Corporation (CNC) will achieve an average price target of $95.71.


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