Core Insights - Citizens Financial reported strong financial performance with net loan growth across consumer, private banking, and commercial markets, outperforming the regional bank ETF with a stock increase of nearly 20% compared to the ETF's 5% rise [1] Private Banking Growth - The private banking segment is highlighted as a significant revenue driver, with the company hiring 150 people following the failure of First Republic in mid-2023, and now employing around 500 [3][4] - The private bank is projected to be 7% accretive to the bottom line, delivering over 20% return on equity (ROE) [3] Competitive Positioning - Citizens Financial aims to occupy the market space previously dominated by First Republic, emphasizing a more comprehensive service offering that includes both business and personal banking solutions [4][6] - The company has a robust commercial banking presence with 4,500 middle market relationships, allowing it to provide total solutions that were not fully offered by First Republic [6] Financial Projections - The company anticipates achieving a return on tangible common equity of 16% to 18%, currently at around 12%, with expected improvements from net interest margin expansion and the growth of the private and commercial banking sectors [7][9] - Factors contributing to this growth include the reduction of legacy costs and an increase in capital markets revenue, which was the second highest since Q4 2021 [9][10] Market Strategy - Citizens Financial does not feel pressured to merge despite recent industry consolidation, citing sufficient organic growth opportunities and competitive scale against larger banks like JPMorgan and Bank of America [11][12] - The company remains open to acquisitions but emphasizes that any potential deal would need to meet high standards due to the existing growth potential [12]

Core Insights - Oakmark Global Fund underperformed the MSCI World Index in the third quarter [1] Fund Activity - The fund initiated new positions in Salesforce, Dassault Systèmes, Hexagon, and Targa Resources during the quarter [1] - The fund exited positions in Amazon.com, Centene, and St. James's Place [1]

Core Insights - Heartland Mid Cap Value Fund's portfolio increased by 1.63% in Q3 2025, underperforming the Russell Midcap® Value Index which gained 6.18% due to stock selection issues [1] - The market trends from Q2 accelerated, driven by optimism around the AI boom and rising electricity demand, leading to significant gains in large- and mid-cap growth stocks regardless of their business model quality or valuation [1] Company Analysis: Centene Corporation (NYSE:CNC) - Centene Corporation, a healthcare enterprise, experienced a one-month return of 9.56% but has lost 50.95% of its value over the past 52 weeks, closing at $35.76 per share with a market capitalization of $17.563 billion on October 10, 2025 [2] - Centene was the worst-performing holding for the fund in Q3 2025, facing challenges from a policy-induced risk pool shift in the ACA Healthcare Exchanges, which negatively impacted profit margins and led to a pre-announced earnings cut [3] - The company is taking aggressive pricing actions to restore margins and provided a positive update on its action plan in September, which helped shares recover from a sharp selloff in July [3] - The stock is currently trading at 11 times the 2026 earnings estimates, which appear increasingly achievable based on recent updates [3]

Core Insights - Oakmark Fund underperformed the S&P 500 Index in Q3 2025 but has outperformed since inception [1] - Financials and energy sectors were the largest contributors to performance, while health care and consumer staples detracted [1] Company Analysis: Centene Corporation (NYSE:CNC) - Centene Corporation is a healthcare enterprise focused on services for under-insured and uninsured families and commercial organizations [2] - The stock experienced a one-month return of 12.92% but has lost 48.16% over the past 52 weeks, closing at $37.83 with a market cap of $18.432 billion on October 9, 2025 [2] - Centene was the top detractor for Oakmark Fund in Q3 2025 due to a significant decline in stock price after withdrawing and then lowering its 2025 earnings per share guidance, attributed to cost pressures in Medicaid and Marketplace businesses [3] - The current valuation of Centene suggests structural headwinds, but the company is expected to see a meaningful earnings recovery in the coming years [3] Hedge Fund Interest - Centene Corporation is not among the 30 most popular stocks among hedge funds, with 59 hedge fund portfolios holding the stock at the end of Q2 2025, down from 64 in the previous quarter [4] - While Centene has potential as an investment, certain AI stocks are viewed as offering greater upside potential with less downside risk [4]

Core Insights - WellCare of North Carolina is investing over $1.6 million in local nonprofit organizations to support health-related resources for vulnerable communities in North Carolina [1][2] - The funding initiative, which started in 2024 and will continue through 2025, aims to address critical healthcare needs such as food security, housing stability, and mental wellness [1][2] - WellCare's approach focuses on hyperlocal investments to directly meet the unique needs of individual communities, thereby improving the health of its members and the state [3] Company Overview - WellCare of North Carolina is a subsidiary of Centene Corporation, providing government-sponsored managed care services primarily through Medicaid [4] - The company operates various health plans, including Marketplace and Medicare Advantage, and is committed to helping individuals with complex needs [4] - Centene Corporation is a Fortune 500 company that focuses on delivering integrated, high-quality, and cost-effective healthcare services to under-insured and uninsured individuals across the nation [5]

Core Viewpoint - Centene Corporation is facing significant challenges, including a projected non-GAAP loss for Q3 and a substantial decline in stock prices over the past year, raising concerns about its future earnings and the sustainability of its business model [2][4][5]. Financial Performance - Centene is expected to report a non-GAAP loss of $0.18 per share for Q3, a sharp decline from a profit of $1.62 per share in the same quarter last year [2]. - For the full fiscal year 2025, the non-GAAP EPS is projected to be $1.64, down 77.1% from $7.17 in 2024, but is expected to rebound to $2.94 per share in fiscal 2026, representing a 79.3% year-over-year increase [3]. Stock Performance - Centene's stock has decreased by 46.3% over the past 52 weeks, significantly underperforming the Health Care Select Sector SPDR Fund's 4.5% decline and the S&P 500 Index's 17.9% increase during the same period [4]. - A notable drop of 40.4% in stock price occurred on July 2 after the company withdrew its 2025 earnings guidance, which was attributed to unexpected enrollment trends and rising patient costs [5]. Operational Challenges - The company has identified rising medical costs in its Medicaid business, particularly in behavioral health and high-cost drug categories, as significant pressure points [6]. - Centene is adjusting its 2026 ACA rates to account for higher morbidity assumptions and plans to implement corrective pricing strategies across most states, raising concerns about the sustainability of ACA economics [6].

10/05/2025Oscar Health shows improving price performance, earning an upgrade to its IBD Relative Strength Rating from 80 to 87. 10/05/2025Oscar Health shows improving price performance, earning an upgrade to... Oscar Health Stock Sees RS Rating Jump To 87 S&P 500 health care stocks including Centene (CNC) and Molina Healthcare (MOH) rose early Tuesday after President Trump expressed openness to a deal with Democrats to avert the expiration of enhanced ACA subsidies. While Trump said that Democrats must firs ...

Economic Engagements - Brazil's Finance Minister Fernando Haddad is preparing for potential bilateral discussions at the upcoming G-20 meeting, indicating an active diplomatic agenda [2] - A recent conversation between President Lula and former President Trump was described as "good," suggesting opportunities for further talks with Bessent next week [2] Domestic Economic Indicators - Brazil's FGV Inflation IGP-DI for September showed a month-over-month increase of 0.36%, slightly below the estimated 0.40%, but an acceleration from the previous month's 0.20% [3] AI Economic Impact - San Francisco Federal Reserve President Mary Daly stated that an AI bubble is unlikely to destabilize the financial system, highlighting AI's potential to significantly enhance national productivity [4] - Daly noted no evidence of mass job displacement due to AI, suggesting a gradual impact on the labor market [5] Target Price Revisions - Wells Fargo has raised target prices for several major technology companies, including Microsoft (MSFT) to $675 from $650, and Advanced Micro Devices (AMD) to $275 from $185, reflecting strong confidence in their performance [6] - Other tech upgrades include Meta Platforms (META) with a target price increase to $837 from $811, and Alphabet Inc. (GOOG) to $236 from $187 [7] - In the healthcare sector, UnitedHealth Group (UNH) received a new target price of $400, up from $267, while Humana Inc. (HUM) was raised to $347 from $344, and Elevance Health, Inc. (ELV) to $412 from $330 [8]

Core Insights - Deep-pocketed investors are showing a bullish sentiment towards Centene (NYSE:CNC), indicating potential significant developments ahead [1] - Recent options activity reveals a split sentiment among investors, with 46% bullish and 46% bearish [2] - The target price for Centene is projected to range from $17.5 to $50.0 based on trading activity over the past three months [3] Options Activity - In the last 30 days, there has been unusual options activity for Centene, with a notable volume and open interest in both calls and puts [4][5] - The largest options trades include bullish call options with significant total trade prices, indicating investor confidence [9] Company Overview - Centene is a managed care organization focusing on government-sponsored healthcare plans, serving 22 million medical members as of December 2024, with a majority in Medicaid [10] - The company has a military contract and provides Medicare Part D pharmaceutical plans, diversifying its revenue streams [10] Market Analysis - Recent analyst ratings suggest an average target price of $37.0, with one analyst maintaining an Equal-Weight rating and another a Buy rating with a target of $39 [12][13] - Current trading volume stands at 3,118,567, with the stock price at $38.75, reflecting a slight increase [15]

Group 1 - Centene Corporation (NYSE:CNC) is identified as a low PE ratio stock within the S&P 500, with a current PE ratio of 8.03x [1][3] - Cantor Fitzgerald has assigned a Neutral rating to Centene, setting a price target of $38, citing that finalized rates are generally close to payor proposals but fall short of the desired 30%+ increases for 2026 [1][2] - The analysis of finalized rates in the first 15 states shows that Centene's rates were approximately 30 basis points higher than initial proposals, with notable discrepancies in states like New York, where an 8.1% proposed increase was finalized at only 2.9% [2][3] Group 2 - The market environment for Centene remains uncertain due to political factors, particularly concerning the CMS Marketplace Integrity & Affordability Final Rule and the potential expiration of premium-enhanced subsidies at the end of the year [3] - Centene operates in the Healthcare Providers & Services industry, focusing on providing services to under-insured and uninsured individuals, as well as commercial organizations in the United States [3]