Some Traders See Unusual Bearish Options Activity in Centene Corp

 Some Traders See Unusual Bearish Options Activity in Centene Corp

In today’s session Centene Corp (CNC) recorded an unusually high (308) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious CNC decrease. With 308 contracts traded and 4364 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: CNC161021P00060000 closed last at: $1 or 11.1% up. About 122,819 shares traded hands. Centene Corp (NYSE:CNC) has risen 5.79% since March 16, 2016 and is uptrending. It has outperformed by 0.24% the S&P500.

Analysts await Centene Corp (NYSE:CNC) to report earnings on October, 25 before the open. They expect $1.17 earnings per share, up 39.29% or $0.33 from last year’s $0.84 per share. CNC’s profit will be $205.47M for 13.18 P/E if the $1.17 EPS becomes a reality. After $1.29 actual earnings per share reported by Centene Corp for the previous quarter, Wall Street now forecasts -9.30% negative EPS growth.

Centene Corp (NYSE:CNC) Ratings Coverage

Out of 12 analysts covering Centene Corporation (NYSE:CNC), 9 rate it a “Buy”, 1 “Sell”, while 2 “Hold”. This means 75% are positive. $86 is the highest target while $69 is the lowest. The $78 average target is 26.48% above today’s ($61.67) stock price. Centene Corporation has been the topic of 16 analyst reports since July 22, 2015 according to StockzIntelligence Inc. The firm has “Market Perform” rating given on Thursday, June 16 by Bernstein. The stock of Centene Corp (NYSE:CNC) earned “Buy” rating by Evercore on Friday, September 23. The rating was initiated by Citigroup with “Buy” on Friday, October 2. The stock of Centene Corp (NYSE:CNC) has “Mkt Perform” rating given on Tuesday, September 6 by Leerink Swann. The rating was maintained by Barclays Capital with “Equal-Weight” on Wednesday, January 6. The stock has “Outperform” rating given by Cowen & Co on Monday, April 25. The firm has “Sell” rating given on Wednesday, July 22 by Goldman Sachs. Jefferies maintained Centene Corp (NYSE:CNC) on Wednesday, July 27 with “Buy” rating. UBS upgraded the shares of CNC in a report on Monday, July 27 to “Buy” rating. The rating was upgraded by Stifel Nicolaus to “Buy” on Thursday, May 26.

According to Zacks Investment Research, “Centene Corporation provides managed care programs and related services to individuals receiving benefits under Medicaid, including Supplemental Security Income, and the State Children’s Health Insurance Program.”

Insitutional Activity: The institutional sentiment decreased to 0.83 in 2016 Q2. Its down 1.08, from 1.91 in 2016Q1. The ratio dropped, as 77 funds sold all Centene Corp shares owned while 185 reduced positions. 64 funds bought stakes while 154 increased positions. They now own 147.39 million shares or 7.12% less from 158.68 million shares in 2016Q1.
Rhenman & Asset Mngmt last reported 1.42% of its portfolio in the stock. Moreover, Teachers Retirement Of The State Of Kentucky has 0.02% invested in Centene Corp (NYSE:CNC) for 24,913 shares. Moreover, Beacon Fincl Group has 0.14% invested in Centene Corp (NYSE:CNC) for 8,823 shares. The Michigan-based Advance Cap I has invested 1.15% in Centene Corp (NYSE:CNC). Everpoint Asset Management Limited Liability owns 510,000 shares or 0.72% of their US portfolio. Atria Invests Ltd Liability has 0.03% invested in the company for 4,021 shares. Roberts Glore Co Il has 0.64% invested in the company for 11,736 shares. Rudman Errol M reported 41,300 shares or 2.82% of all its holdings. Moreover, Commerzbank Aktiengesellschaft Fi has 0% invested in Centene Corp (NYSE:CNC) for 10,049 shares. Wesbanco Commercial Bank Incorporated, a West Virginia-based fund reported 8,100 shares. Chicago Equity Prtnrs Ltd Liability Corp reported 7,837 shares or 0.02% of all its holdings. Blackrock Group Limited reported 1.87M shares or 0.07% of all its holdings. Guardian Tru, a California-based fund reported 882 shares. British Columbia Inv Mngmt accumulated 107,513 shares or 0.07% of the stock. Redmile Grp Limited Liability Company, a California-based fund reported 285,143 shares.

Insider Transactions: Since April 28, 2016, the stock had 1 insider buy, and 6 insider sales for $3.48 million net activity. Shares for $1.10M were sold by GEPHARDT Richard A. $254,449 worth of shares were sold by BROOKS MARK J on Monday, June 6. On Friday, July 1 Baldwin Kenneth Rone sold $426,000 worth of the stock or 6,000 shares. GOLDMAN CAROL sold $663,600 worth of Centene Corp (NYSE:CNC) on Monday, October 3. $651,700 worth of Centene Corp (NYSE:CNC) shares were sold by Hunter Jesse N. DITMORE ROBERT K bought 150 shares worth $10,050.

Centene Corporation is a diversified healthcare firm that provides programs and services to government sponsored healthcare programs. The company has a market cap of $10.83 billion. The Firm also provides education and outreach programs to inform and assist members in accessing appropriate healthcare services. It has a 24.62 P/E ratio. The Firm operates through two divisions.

CNC Company Profile

Centene Corporation, incorporated on September 26, 2001, is a diversified healthcare firm that provides programs and services to government sponsored healthcare programs. The Firm offers member-focused services by assisting in accessing care, coordinating referrals to related health and social services, and addressing member concerns and questions. It also provides education and outreach programs to inform and assist members in accessing appropriate healthcare services. The Firm operates through two divisions: Managed Care and Specialty Services. The Managed Care segment consists of the Company’s health plans, including all of the functions needed to operate them. The Specialty Services segment consists of the Company’s specialty companies offering auxiliary healthcare services and products.

More news for Centene Corp (NYSE:CNC) were recently published by: Prnewswire.com, which released: “Reminder: Centene Corporation’s 2016 Third Quarter Financial Results …” on September 26, 2016. Stltoday.com‘s article titled: “Centene subsidiary awarded expanded Medicaid contract in Missouri” and published on October 18, 2016 is yet another important article.

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