Centene Corporation (CNC)

Centene's stock price experienced a decline of 28.73% between January 6, 2025, and January 5, 2026, but showed strong momentum with a 25.43% price return over the past six months. In Q3 2025, Centene reported results that exceeded forecasts due to advantageous tax timing, stabilized Medicaid members, and an increase in Medicare Star Ratings. Approximately 55% of Centene's Medicare Advantage membership was enrolled in plans rated 3.5 stars or higher, a significant increase from the prior year. Barclays upgraded Centene from Equalweight to Overweight and raised its price target, citing potential margin improvements in the company's ACA exchange business, and Bernstein also raised Centene's price target. A Politico report suggesting a potential two-year extension of Obamacare subsidies garnered notable attention for Centene's stock. Centene announced a Medicaid partnership with Cityblock Health and Meridian Health Plan of Illinois to serve 10,000 Medicaid members. Centene repurchased $3.0 billion worth of common shares in 2024. Investors have expressed concerns about a massive $6.7 billion goodwill write-down. Centene is scheduled to release its 2025 fourth quarter and year-end financial results on February 6, 2026.

Centene's products and services exhibit some demand seasonality, particularly concerning its selling, general, and administrative (SG&A) expenses, which increase in the fourth quarter due to selling periods for its Marketplace and Medicare products.

Centene Corp. operates in the Healthcare Providers & Services sector, managing health plans for government programs like Medicaid and Medicare, and offering employer-sponsored and individual health insurance. The company's integrated approach includes care management, pharmacy benefit management, behavioral health, and complex care solutions. Centene provides health plan coverage through government-subsidized Medicaid programs. It offers special needs plans, Medicare supplement plans, and prescription drug plans through Medicare. Centene provides health insurance marketplace products for individual, small, and large group commercials through its Ambetter brand. The company delivers diversified healthcare services and products to state programs, correctional facilities, healthcare organizations, employer groups, and other commercial organizations through its specialty services.

Centene Corporation has a significant market presence across all 50 states in the U.S. and also maintains operations in Europe.

Centene's brand reputation has been influenced by its efforts to provide healthcare services and engage with communities, including Health Net providing assistance to members affected by storms and Ambetter Health launching a public service announcement with the Tampa Bay Buccaneers. Sunshine Health partnered with local women athletes to champion health awareness. However, the mention of a "massive $6.7 billion goodwill write-down" could potentially impact investor perception and the company's financial reputation.

Centene Corporation's ownership structure is primarily institutional, with 1654 institutional owners and shareholders holding a total of 532,087,400 shares. Approximately 72.94% of the company's stock is owned by Institutional Investors, while 0.61% is owned by Insiders, and 26.46% by Public Companies and Individual Investors. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and State Street Corp.