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Stock Market & Financial Investment News

News Breaks
October 17, 2012
12:09 EDTCVH, CNC, WCGCentene jumps on plans to terminate Kentucky deal
Centene (CNC), which provides services related to Medicaid, announced that it had terminated its Medicaid contract with the state of Kentucky. The company said it believes that its contract with the state gives it the right to take this step, and it expects to terminate the deal effective July 5, 2013. Centene added that it has filed a "formal dispute" for damages that it incurred under the contract. The company anticipates recording a pre-tax premium deficiency reserve ranging from $60M-$70M related to the Kentucky operations in the quarter ended September 30. In a note to investors earlier today, Wells Fargo analyst Peter Costa wrote that Centene's earnings had been pressured by very high medical costs in Kentucky. The company's exit from the contract should mitigate the negative impact that Kentucky has had on the company's earnings, the analyst added. Meanwhile, Centene's move could cause problems for two of its competitors, Conventry (CVH) and WellCare (WCG), according to Costa. Centene's more expensive Medicaid recipients are likely to move to plans offered by those companies, he explained. The analyst maintained Outperform ratings on Centene and Coventry, and a Market Perform rating on WellCare. In late morning trading, Centene climbed $3.73, or 10.66%, to $38.71, while Coventry lost 0.43% to $43.56 and WellCare gained 1.04% to $54.24.
News For CNC;CVH;WCG From The Last 14 Days
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April 17, 2015
08:04 EDTCNCCentene's Nurtur receives full URAC accreditation
Centene announced that Nurtur, its health and wellness subsidiary, received full Disease Management Accreditation from URAC, a Washington, DC-based healthcare accrediting organization that establishes quality standards for the healthcare industry.
April 13, 2015
10:58 EDTCNC, WCGCigna, Humana seen as potential takeover targets in Managed Care space
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07:33 EDTCNC, WCGJefferies sees low probability of WellCare, Centene buyouts
After running several acquisition scenarios for the Managed Care space, Jefferies says potential takeovers of WellCare (WCG) and Centene (CNC) are "hard to justify." The firm estimates acquirers will only be able to generate 1%-3% accretion from buying either company at a 20% premium to current share prices. The deal that makes the most financial sense is Aetna (AET) buying Cigna (CI), Jefferies says today in a note to investors. Also financially attractive would be a buyout of Humana (HUM) by either Anthem (ANTM) or Aetna, the firm adds. After analyzing the Managed Care space, it upgraded this morning shares of UnitedHealth (UNH) to Buy from Hold with a $141 price target. Jefferies also has Buy ratings on Aetna, Anthem, Health Net (HNT) and Molina Healthcare (MOH).

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