We recently compiled a list of the 10 Large-Cap Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where Centene Corporation (NYSE:CNC) stands against the other large-cap stocks.
Investors should closely monitor insider trading activity as it can provide valuable insights into a company’s future prospects. Insiders, such as executives and directors, possess intimate knowledge of the company’s operations and strategic direction. When these individuals invest their own capital in company stock, it often signals strong confidence in the company’s future performance.
While not an infallible indicator, significant insider buying activity can suggest that the company may be undervalued or poised for growth. Conversely, while insider selling can have various motivations, it can sometimes signal concerns about the company’s future.
It’s crucial to remember that insider trading activity should be analyzed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. A stock seeing heavy insider buying doesn’t always mean it will go up sharply in the future. Therefore, investors should carefully consider the underlying reasons for insider transactions and conduct thorough due diligence before making investment decisions based on this information alone. By carefully analyzing insider trading activity alongside other relevant factors, investors can gain valuable insights into a company’s prospects and make more informed investment decisions.
To come up with the 10 names, we only considered stocks with a market capitalization of more than $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders buying over the last six months.
With each stock we note the number of recent insider purchases and the company’s current market capitalization. But why is it important to follow insider activity? Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A doctor holding a clipboard in a hospital ward, discussing patient treatment plan with the nurses.
Centene Corporation (NYSE:CNC)
Number of Recent Insider Purchases: 7
Market Cap: $33.117 billion
Centene Corporation is one of the biggest providers of Medicaid-managed care services in the United States. It also offers products to Medicare members (including Medicare Prescription Drug Plans) and individuals and families served by the Health Insurance Marketplace. This way, the company is servicing more than 1 in 15 individuals across the nation.
In its financial report for the third quarter of 2024, the healthcare company disclosed premium and service revenues of $36.9 billion, compared to $34.97 million in the same period of 2023. Centene Corporations also revealed adjusted diluted earnings per share of $1.62, which compares to adjusted diluted earnings per share of $2.00 in the third quarter of 2023.
Its recent share decline, Oakmark Funds, advised by Harris Associates, attributed to investors’ concern around legislative changes following the recent U.S. presidential election and its potential impact on the company. Oakmark Funds acknowledged Centene’s earning power that can drive continued growth in earnings per share.
Over the last 12 months, Centene Corporation shares declined 11.03% to $65.89 per share.
Overall CNC ranks 8th on our list of the large-cap stocks insiders are buying recently. While we acknowledge the potential of CNC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CNC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.