We are unable to determine if the dark pool trade was a buy or sell order.
On January 28, 2020, Bernstein analyst Lance Wilkes raised his price target for Centene to $103 from $84 to reflect accretion associated with the WellCare merger and underlying organic strength from Medicaid growth. He maintains an Outperform rating on the shares. Centene is Lance Wilkes top pick with 52% potential upside. Wilkes highlights Centene’s long-term growth of “high acuity” in Medicaid and Medicaid expansion and an attractive valuation.
On January 23, 2020, Centene Corporation (NYSE: CNC) announced that it completed its acquisition of WellCare Health Plans.
Centene now provides access to high-quality and affordable healthcare to its more than 24 million members across all 50 states, or 1 in 15 individuals across the nation. The Company will continue to place great emphasis on long-term growth by prioritizing its people, systems and capabilities so that it can better serve its members, providers and government partners.
“We are pleased to have completed this transformational acquisition to create a leading healthcare enterprise committed to helping people live healthier lives through access to high-quality and affordable healthcare solutions,” said Michael F. Neidorff, Centene’s Chairman, President and Chief Executive Officer. “Through the integration planning process, it has become even more apparent that our goals, cultures and values are aligned. Centene is committed to building on our mission to further improve the health of the communities we serve. We look forward to Centene’s next chapter where we will continue to drive growth and create value for shareholders.”
Pursuant to the terms of the merger agreement, as announced on March 27, 2019, WellCare became a wholly owned subsidiary of Centene. Under the terms of the merger agreement, WellCare shareholders received a fixed exchange ratio of 3.38 shares of Centene common stock and $120 in cash for each share of WellCare common stock.
With the completion of the transaction, the previously announced divestitures of Centene’s Illinois Medicaid and Medicare Advantage plans, WellCare’s Missouri Medicaid and Medicare Advantage plans and WellCare’s Nebraska Medicaid plan have also closed.
On January 10, 2020, Morgan Stanley analyst Ricky Goldwasser notes that her top picks in Healthcare Services for 2020 are Anthem (ANTM) and Centene (CNC). She sees the most multiple expansion opportunity for Anthem as it continues taking Medicare Advantage share and for Centene given its Wellcare (WCG) deal, said Goldwasser, who has a price target of $82 for Centene shares.