Zacks Investment Research upgraded shares of Molina Healthcare Inc. (NYSE:MOH) from a hold rating to a buy rating in a research report report published on Tuesday. Zacks Investment Research currently has $64.00 price target on the stock.
According to Zacks, “Molina Healthcare is poised for long-term growth owing to its significant presence in high growth Medicaid and dual eligible markets. The company has been witnessing a steady increase in premiums and service revenues over the past several quarters due to the persistent growth in membership. The company has taken up several inorganic growth initiatives in order to arrange health care services for patients with complex requirements. A long-term trend of rising operating cash flow has been strengthening the cash position of a company and paving the way for efficient capital deployment. However, Molina Healthcare remains cautious about the rising medical care costs, which have been compressing margins. The company’s significant dependence on debt financing that resulted in sustained increase in interest expenses has adversely affected Molina Healthcare’s financials.”
Several other equities analysts also recently commented on MOH. Cantor Fitzgerald restated a hold rating and issued a $55.00 price target on shares of Molina Healthcare in a research note on Friday, July 29th. Leerink Swann restated a buy rating on shares of Molina Healthcare in a research note on Thursday, July 28th. Credit Suisse Group AG restated a hold rating on shares of Molina Healthcare in a research note on Tuesday, June 28th. Goldman Sachs Group Inc. upgraded shares of Molina Healthcare from a sell rating to a neutral rating and boosted their price target for the stock from $51.00 to $58.00 in a research note on Monday, September 19th. Finally, Jefferies Group boosted their price target on shares of Molina Healthcare from $63.00 to $70.00 and gave the stock a buy rating in a research note on Tuesday, September 13th. One research analyst has rated the stock with a sell rating, six have given a hold rating and five have issued a buy rating to the company. The company currently has an average rating of Hold and a consensus price target of $62.80.
Molina Healthcare (NYSE:MOH) opened at 58.32 on Tuesday. The stock has a market cap of $3.31 billion, a price-to-earnings ratio of 25.25 and a beta of 1.53. The company has a 50-day moving average price of $56.30 and a 200-day moving average price of $55.11. Molina Healthcare has a 52 week low of $44.50 and a 52 week high of $70.82.
Molina Healthcare (NYSE:MOH) last posted its quarterly earnings results on Wednesday, July 27th. The company reported $0.67 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.49 by $0.18. The business earned $4.36 billion during the quarter, compared to the consensus estimate of $4.35 billion. Molina Healthcare had a net margin of 0.83% and a return on equity of 9.60%. The company’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.72 earnings per share. Equities research analysts anticipate that Molina Healthcare will post $2.74 EPS for the current year.
In other news, insider Joseph W. Cpa White sold 6,676 shares of the company’s stock in a transaction dated Thursday, August 4th. The shares were sold at an average price of $58.48, for a total value of $390,412.48. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Garrey Carruthers sold 1,600 shares of the company’s stock in a transaction dated Tuesday, September 13th. The shares were sold at an average price of $55.46, for a total transaction of $88,736.00. Following the completion of the sale, the director now directly owns 9,508 shares of the company’s stock, valued at $527,313.68. The disclosure for this sale can be found here. 6.89% of the stock is currently owned by corporate insiders.
Several large investors have recently made changes to their positions in MOH. Ladenburg Thalmann Financial Services Inc. boosted its stake in shares of Molina Healthcare by 168.4% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 1,581 shares of the company’s stock worth $102,000 after buying an additional 992 shares during the last quarter. BlackRock Japan Co. Ltd boosted its stake in shares of Molina Healthcare by 9.0% in the first quarter. BlackRock Japan Co. Ltd now owns 1,848 shares of the company’s stock worth $119,000 after buying an additional 152 shares during the last quarter. Advance Capital I Inc. acquired a new stake in shares of Molina Healthcare during the second quarter worth approximately $215,000. Wright Investors Service Inc. acquired a new stake in shares of Molina Healthcare during the second quarter worth approximately $224,000. Finally, Cambridge Investment Research Advisors Inc. acquired a new stake in shares of Molina Healthcare during the second quarter worth approximately $237,000. 87.58% of the stock is owned by institutional investors and hedge funds.
Molina Healthcare Company Profile
Molina Healthcare, Inc offers Medicaid-related solutions for low-income families and individuals, and assists government agencies in their administration of the Medicaid program. The Company operates through three segments: Health Plans, Molina Medicaid Solutions and Other. Its Health Plans segment consists of health plans in approximately 10 states and the Commonwealth of Puerto Rico, and its direct delivery business.
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