Centene Corp's (NYSE:CNC) Chief Financial Officer, Asher Andrew Lynn, has made a significant purchase of the company's stock, according to a recent SEC filing. On November 13, Lynn acquired 17,200 shares at an average price of $58.14 per share. This transaction amounts to a total of approximately $1,000,008. Following this acquisition, Lynn now holds a total of 486,847.48 shares, which includes previously granted restricted and performance stock units subject to vesting requirements.
In addition to the stock purchase, Lynn holds options for 13,449 shares of common stock, which can be exercised at a price of $81.85 per share. These options are set to expire on December 15, 2031, and may become exercisable if Centene's stock price meets certain performance criteria in the future.
In other recent news, Sunshine Health, a part of Centene Corporation, has appointed Charlene Zein as its new Plan President and CEO. Zein brings nearly 20 years of healthcare industry experience to her new role. This leadership change comes as Sunshine Health continues to expand its services within the Florida healthcare market.
In analyst news, Jefferies has adjusted its outlook on Centene, reducing the price target to $68 from $72 while maintaining a Hold rating. This decision was influenced by several factors, including a slight increase in Centene's Medicaid Medical (TASE:PMCN) Loss Ratio (MLR).
Centene's recent quarterly earnings exceeded market expectations, with an adjusted diluted earnings per share (EPS) of $1.62 and robust growth in Medicaid and Marketplace segments. The company's revenue range for 2025 is projected to be between $14 billion and $16 billion due to the restructuring of Medicare Advantage offerings. The company's Marketplace business is expected to continue its growth trajectory, serving 4.5 million members with projected pre-tax margins of 5% to 7.5%. These are some of the recent developments at Centene Corporation.
InvestingPro Insights
The recent insider purchase by Centene Corp's CFO Asher Andrew Lynn aligns with several key insights from InvestingPro. According to InvestingPro Tips, management has been aggressively buying back shares, which, coupled with Lynn's substantial personal investment, signals strong confidence in the company's future prospects.
Centene's stock is currently trading near its 52-week low, with a price-to-earnings ratio of 10.03. This relatively low valuation is further emphasized by InvestingPro Data showing a P/E ratio (adjusted) of 9.58 for the last twelve months as of Q3 2024. The company's PEG ratio of 0.32 suggests that the stock may be undervalued relative to its growth potential.
Despite recent market challenges, with the stock experiencing a 19.88% decline over the past month, Centene remains a profitable entity. InvestingPro Tips indicate that analysts predict the company will maintain profitability this year, supported by a robust revenue of $146.2 billion over the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Centene Corp, providing a deeper understanding of the company's financial health and market position.
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