The future of health care policies that have benefited health care companies like Centene Corp. and Cerner Corp. is now uncertain with the election of Donald Trump — and investors reacted strongly on Wednesday.
Centene shares fell 19 percent to close at $54.05 on Wednesday. Cerner’s stock dropped 4.6 percent from $52.65 to $50.22. Other health insurers and hospital companies also closed lower.
Centene and its peer Molina Healthcare Inc. have had the most success under the law, according to analyst Michael Baker with Raymond James.
Centene CEO Michael Neidorff said Wednesday the market was having a “gross overreaction” to the election, and he expected the company’s stock to rebound. Jeffrey Loo, an equity analyst at CFRA Research maintained that most of Wednesday’s decrease was a reaction to decreasing hospital capital expenditures.