Centene's 5.79% Stock Jump on 87.5% Surge in $560M Volume Ranks 184th Amid Legal Scrutiny Over Enrollment Metrics

On August 15, 2025, Centene Corporation (CNC) saw a 5.79% increase in share price, with a trading volume of $560 million—a 87.53% rise from the previous day. The stock ranked 184th in trading activity, reflecting renewed investor interest amid ongoing legal scrutiny.

Centene faces a securities class-action lawsuit alleging misleading disclosures about its financial health and enrollment metrics. The suit, Lunstrum v. Centene Corporation, claims the company overstated enrollment growth and downplayed rising medical costs during the period December 12, 2024, to June 30, 2025. A July 25 earnings report revealed a $0.51 GAAP loss per share, driven by reduced risk adjustment revenue estimates, prompting a 40% stock plunge and the withdrawal of 2025 guidance. Plaintiffs argue internal data showed lower-than-expected enrollment and higher morbidity rates than publicly disclosed.

Legal firms including Hagens Berman and Kessler Topaz Meltzer & Check are representing investors, urging those with losses to participate in the case. The lead plaintiff deadline is September 8, 2025. The lawsuit highlights a disconnect between Centene’s optimistic public statements and internal metrics, which allegedly misled shareholders. The company’s abrupt guidance revision, based on an independent actuarial review, exacerbated market volatility and eroded billions in shareholder value.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a $2,550 profit from 2022 to the present. However, the approach faced a maximum drawdown of -15.4% on October 27, 2022, underscoring the volatility inherent in such strategies during market downturns.