On February 13, 2024, Lori Robinson, a director at Centene Corp (CNC, Financial), executed a sale of 10,000 shares of the company, according to a recent SEC Filing. This transaction has been part of a series of sales by the insider over the past year, totaling 11,400 shares, with no recorded purchases in the same period.
Centene Corp, the company in question, operates as a diversified and multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals. It is one of the largest providers of Medicaid, Medicare, and other government-sponsored and commercial programs.
The insider transaction history for Centene Corp shows a lack of insider purchases over the past year, with a total of 0 insider buys. In contrast, there have been 3 insider sells in the same timeframe, indicating a trend of insider sales.
On the valuation front, Centene Corp's shares were trading at $77.41 on the day of the insider's recent sale. The company's market cap stands at $41.85 billion. The price-earnings ratio of 15.95 is below both the industry median of 18.28 and the company's historical median price-earnings ratio, suggesting a lower valuation relative to its peers and its own past.
Considering the stock's price of $77.41 against the GuruFocus Value of $92.62, Centene Corp has a price-to-GF-Value ratio of 0.84, indicating that the stock is Modestly Undervalued according to the GF Value metric.
The GF Value is determined by considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates provided by Morningstar analysts.
Investors and analysts often monitor insider transactions as they can provide insights into the insider's view of the company's stock value. However, it is important to consider a wide range of factors when evaluating the implications of insider trades.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
