Centene Corporation (CNC)

Centene's stock price has decreased by 45.4% since January 1, 2025, due to several key events. Q2 2025 earnings missed expectations, leading to a guidance withdrawal and stock downgrade. Elevated medical cost trends across the healthcare sector have impacted earnings. Medicaid eligibility redeterminations have created headwinds for enrollment. Molina Healthcare's disappointing guidance also negatively affected Centene's stock. The lifting of a Medicare Advantage enrollment suspension in August 2025 caused a stock jump. Speculation of interest rate cuts provided a boost to the stock in August 2025.

Centene's business in government-sponsored healthcare programs suggests some inherent seasonality. Medicare Advantage and prescription drug plans have enrollment periods that increase activity. The ACA marketplace open enrollment period also drives seasonal demand. Medicaid enrollment can fluctuate due to policy changes and state-level redeterminations. The healthcare sector generally exhibits inelastic demand, but financial performance can be impacted by medical cost trends and policy changes.

Centene Corporation is a diversified, multinational healthcare enterprise based in St. Louis, Missouri, operating as a managed care organization. It specializes in providing services to government-sponsored and commercial healthcare programs, including managing health plans for Medicaid, Medicare, CHIP, employer-sponsored insurance, and individual health insurance through the ACA marketplace. The company also provides TRICARE benefits. Major products and services include Medicaid Health Plans offering comprehensive healthcare solutions, Medicare Advantage Plans tailored for seniors, ACA Health Insurance Marketplace Products, and Specialty Services like pharmacy benefit management, behavioral health, vision and dental care, and correctional healthcare services.

Centene serves members across more than 30 states, the District of Columbia, and Puerto Rico, with a market presence across all 50 U.S. states. It previously had operations in Europe but sold its UK-based Circle Health in August 2023.

Centene was named to the Forbes® America's Best Employers for Company Culture™ list in September 2025, reflecting its commitment to a values-driven culture. However, the company has faced securities class action lawsuits and the withdrawal of its 2025 earnings guidance, which could negatively affect its reputation.

As of October 2025, institutions hold 93.63% of Centene's stock, while insiders hold only 0.36%. In the past three months, Centene insiders have purchased $738,945.00 in company stock and have not sold any.