Graphene Investments Dumps 55K CNC Shares for $3 Million

Graphene Investments SAS fully exited its position in Centene Corporation (NYSE:CNC) during the third quarter, selling approximately 55,600 shares in a transaction estimated at ~$3.02 million as of October 7, 2025, based on the Form 13F filed for the period ending September 30, 2025.

What happened

According to a filing with the Securities and Exchange Commission dated October 07, 2025, Graphene Investments SAS sold all of its 55,600 shares in Centene Corporation during the quarter. The estimated value of the transaction, calculated using the quarter's average share price, was approximately $3.02 million. The position had previously represented 1.9673% of the fund's reported assets at the end of Q2 2025.

What else to know

The fund fully sold out of Centene Corporation; the holding now makes up 0% of reportable AUM for the quarter.

Top four holdings after the filing:

NASDAQ:GOOGL: $9.36 million (5.9% of AUM) for the quarter

NASDAQ:AAPL: $7.49 million (4.7% of AUM) as of September 30, 2025

NASDAQ:MSFT: $6.53 million (4.1% of AUM) as of September 30, 2025

NASDAQ:NVDA: $6.49 million (4.1% of AUM) as of September 30, 2025

As of October 6, 2025, shares of Centene Corporation were priced at $37.64, down 47.35% over the prior year and lagging the S&P 500 by 66.0 percentage points.

Company Overview

Company Snapshot

Centene Corporation provides managed healthcare services, including Medicaid, Medicare, commercial health plans, specialty pharmacy, and ancillary health services.

The company generates revenue primarily through government-subsidized programs by managing care for under-insured and uninsured populations, leveraging contracts with state agencies and commercial organizations.

Centene's main customers are state governments, correctional facilities, employer groups, and individuals eligible for Medicaid, Medicare, and related health programs.

Centene Corporation is a leading healthcare enterprise focused on delivering managed care solutions for government-sponsored and commercial health programs across the United States. With a diversified portfolio spanning Medicaid, Medicare, and specialty services, the company leverages scale and expertise to serve complex and underserved populations.

Foolish take

Centene is a big provider of Medicaid services, but marketplace plans made possible by the Affordable Care Act (ACA) are also a significant part of its business. At the end of June, 21% of Centene's total membership roster was made up of marketplace plan members.

Enhanced premium tax credits introduced in 2021 are set to expire at the end of 2025. Since the enhanced credits were introduced, enrollment in marketplace plans has more than doubled from 11 million to over 24 million people.

If those credits are allowed to expire, Centene could lose a lot of business. According to the Kaiser Family Foundation, a family of four trying to get by on $75,000 annually will see their premium payments more than double to reach about $489 per month.

This year, Centene expects adjusted earnings to come in at about $1.75 per share. That's down from an estimate of $7.25 per share that it announced earlier this year. With earnings in freefall, it's probably best to watch this stock's story play out from a safe distance.

Glossary

Form 13F: A quarterly report filed by institutional investment managers disclosing their equity holdings to the SEC.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
Managed healthcare services: Health insurance plans that coordinate and manage medical care to control costs and improve quality.
Medicaid: A U.S. government program providing health coverage to low-income individuals and families.
Medicare: A federal health insurance program for people aged 65 and older or with certain disabilities.
Specialty pharmacy: A pharmacy service focused on complex or high-cost medications, often for chronic or rare conditions.
Ancillary health services: Supplemental healthcare services such as lab tests, imaging, or physical therapy, supporting primary medical care.
Government-subsidized programs: Health or social services funded partly or wholly by the government to reduce costs for eligible participants.
Correctional facilities: Prisons or jails where healthcare services may be provided to incarcerated individuals.
Quarter (financial): A three-month period used by companies to report financial performance and results.
Material allocation: A significant portion of a fund’s portfolio is invested in a particular asset or company.
TTM: The 12-month period ending with the most recent quarterly report.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.