Centene’s MA Gains Swell Stock, But Could Have Downside

Centene Corp.’s shares rose following its fourth-quarter and full-year 2021 earnings release on Feb. 8, with the market seemingly impressed with the insurer’s Medicaid and Medicare Advantage membership gains. Still, one equities analyst sounded a note of skepticism about what large MA enrollment gains will mean for Centene’s margins.

“Outsized share gains in MA are typically a cautionary sign for margin,” Jefferies analyst David Windley wrote in a Feb. 8 note to investors. Centene’s management “is signaling flat ’22 MA margin, but is flat still optimistic with multiple competitors calling out CNC’s aggressive pricing?”

0 Comments
© 2024 MMIT
Leslie Small

Leslie Small

Leslie has been reporting and editing in various journalism roles for nearly a decade. Most recently, she was the senior editor of FierceHealthPayer, an e-newsletter covering the health insurance industry. A graduate of Penn State University, she previously served in editing roles at newspapers in Pennsylvania, Virginia and Colorado.

Related Posts

post-default-image
July 30

Centene, Humana Post Solid Second-Quarter Results

Read More
post-default-image
April 30

Centene’s 1Q Features Lots Of Pandemic Upside, Downside

Read More

GAIN THERAPEUTIC AREA-SPECIFIC INTEL TO DRIVE ACCESS FOR YOUR BRAND

Sign up for publications to get unmatched business intelligence delivered to your inbox.

subscribe today