Centene Corporation (NYSE:CNC) Relative Strength Index (RSI) is 67.06, with weekly volatility at 1.38% and ATR at 1.65. The CNC stock’s 52-week price range has touched low of $53.60 and a $74.52 high. Intraday shares traded counted 4.25 million, which was -4.53% lower than its 30-day average trading volume of 4.07M. Its shares traded lower over the last trading session, losing -0.43% on 06/01/21. The shares fell to a low of $72.78 before closing at $73.28. CNC’s previous close was $73.60 while the outstanding shares total 581.87M. The firm has a beta of 0.47, a 12-month trailing P/E ratio of 17.51, and a growth ratio of 1.70.
Investors have identified the Healthcare Plans company Centene Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $42.77 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Centene Corporation (CNC) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CNC, the company has in raw cash 9.63 billion on their books with 62.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 24.44 billion total, with 22.28 billion as their total liabilities.
CNC were able to record -144.0 million as free cash flow during the 07/27/2021 quarter of the year, this saw their quarterly net cash flow reduce by -653.0 million. In cash movements, the company had a total of 43.0 million as operating cash flow.
Potential earnings growth for Centene Corporation (CNC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/27/2021 quarter of the year, Centene Corporation recorded a total of 29.98 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 13.2% coming in sequential stages and their sales for the 07/27/2021 quarter increasing by 5.65%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 26.37 billion trying to sell their products during the last quarter, with the result yielding a gross income of 3.62 billion. This allows shareholders to hold on to 581.87M with the recently reported earning now reading 1.20 cents per share. This is a figure that compared to analyst’s prediction for their 07/27/2021 (1.63 cents a share).
Having a look at the company’s valuation, the company is expected to record 5.77 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CNC sounds very interesting.
Is the stock of CNC attractive?
In related news, Director, ROBERTS JOHN R sold 5,000 shares of the company’s stock in a transaction that recorded on May 07. The sale was performed at an average price of 70.00, for a total value of 350,000. As the sale deal closes, the EVP, HealthCare Enterprises, Schwaneke Jeffrey A. now sold 18,000 shares of the company’s stock, valued at 1,242,000. Also, EVP, Chief Information Officer, BROOKS MARK J sold 15,000 shares of the company’s stock in a deal that was recorded on May 07. The shares were price at an average price of 68.00 per share, with a total market value of 1,020,000. Following this completion of acquisition, the EVP, Chief BD Officer, LAYTON BRENT D now holds 7,682 shares of the company’s stock, valued at 499,330. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.90%.
14 out of 20 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on Centene Corporation. 0 analysts has assigned a Sell rating on the CNC stock. The 12-month mean consensus price target for the company’s shares has been set at $80.76.