Centene Corp (CNC) Falls 3.42% Amidst Analyst Estimates

Centene Corp (CNC) shares fell 3.42% on Jul 17, reaching an intraday low of $29.23. The stock is down 63.56% from its 52-week high and 0.48% above its 52-week low. Analysts forecast an average target price of $58.22, implying an upside of 98.23%. The estimated GF Value is $96.54, suggesting a 228.7% upside from the current price.

Title: Centene Corporation (CNC) Shares Plummet Amidst Market Challenges

Centene Corporation (CNC) shares experienced a significant downturn on July 17, falling by 3.42% to reach an intraday low of $29.23. The stock is currently down 63.56% from its 52-week high and is trading just 0.48% above its 52-week low of $32.26 [1]. Analysts forecast an average target price of $58.22, indicating a potential upside of 98.23%. The estimated GF Value is $96.54, suggesting a substantial 228.7% upside from the current price.

The decline in Centene's stock price can be attributed to several factors. The company withdrew its 2025 financial guidance due to challenges in its Marketplace business and Medicaid sector. This withdrawal is estimated to reduce expected risk adjustment revenue transfers by $1.8 billion, impacting earnings per share by $2.75 [1]. Analysts from Wolfe Research suggest that similar trends across Centene’s remaining markets could increase the total impact to approximately $2.5 billion or $3.80 per share.

Despite the challenges, Truist Securities maintained its Buy rating on Centene, while Cantor Fitzgerald lowered its price target to $65, reflecting reduced earnings estimates. Meanwhile, CVS Health (NYSE:CVS) continues to hold a Buy rating from TD Cowen, which sees limited exposure to the risks currently affecting Centene. TD Cowen’s analysis suggests that CVS’s diversified revenue mix could mitigate potential impacts on its earnings [1].

Additionally, Centene's stock has been trading in oversold territory, as indicated by its Relative Strength Index (RSI). The company's management has been actively buying back shares, which may provide some support for the stock price in the short term [1].

References:
[1] https://ng.investing.com/news/company-news/centene-corp-stock-hits-52week-low-at-3226-93CH-1999680