Centene Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Centene (NYS: CNC) fell 12% to begin trading today, but recovered some of that loss and is now down just 6%.
So what: Georgia said it was going to double check Medicaid records for overpayments, and AMERIGROUP (NYS: AGP) said it would take a $0.16 per share charge. The state found it had double paid some insurers and it would be looking for money back for those over payments.
Now what: It seems a little odd that neither insurers nor anyone in the government knew that these double payments were happening. What should be good for taxpayers is a drag for investors today, and who knows exactly what the impact will be. For now it's a big unknown but a number of insurers have been dragged lower today and I'm leery of buying on the dip.
Interested in more info on Centene? Add it to your watchlist.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter services have recommended buying shares of AMERIGROUP. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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