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 brokerages have also weighed in on MOH. Cantor Fitzgerald reiterated a hold rating and issued a $55.00 price objective on shares of Molina Healthcare in a research report on Friday, July 29th. Jefferies Group increased their price objective on Molina Healthcare from $63.00 to $70.00 and gave the stock a buy rating in a research report on Tuesday, September 13th. Goldman Sachs Group Inc. upgraded Molina Healthcare from a sell rating to a neutral rating and raised their price target for the stock from $51.00 to $58.00 in a research report on Monday, September 19th. Credit Suisse Group AG restated a hold rating on shares of Molina Healthcare in a research report on Tuesday, June 28th. Finally, Leerink Swann restated a buy rating on shares of Molina Healthcare in a research report on Thursday, July 28th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and four have given a buy rating to the stock. The company has a consensus rating of Hold and an average target price of $62.80.
Molina Healthcare (NYSE:MOH) opened at 57.09 on Monday. The company’s 50-day moving average price is $56.26 and its 200 day moving average price is $54.92. The firm has a market capitalization of $3.24 billion, a price-to-earnings ratio of 24.71 and a beta of 1.53. Molina Healthcare has a 12 month low of $44.50 and a 12 month high of $70.82.
Molina Healthcare (NYSE:MOH) last issued its quarterly earnings data on Wednesday, July 27th. The company reported $0.67 earnings per share for the quarter, topping the consensus estimate of $0.49 by $0.18. The company earned $4.36 billion during the quarter, compared to analyst estimates of $4.35 billion. Molina Healthcare had a return on equity of 9.60% and a net margin of 0.83%. The firm’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.72 earnings per share. Analysts predict that Molina Healthcare will post $2.74 EPS for the current year.
In other Molina Healthcare news, Director Steven J. Orlando sold 2,500 shares of the firm’s stock in a transaction on Monday, August 8th. The stock was sold at an average price of $58.82, for a total value of $147,050.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Garrey Carruthers sold 1,600 shares of the firm’s stock in a transaction on Tuesday, September 13th. The shares were sold at an average price of $55.46, for a total value of $88,736.00. Following the completion of the sale, the director now owns 9,508 shares in the company, valued at $527,313.68. The disclosure for this sale can be found here. 6.89% of the stock is owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of the stock. Aperio Group LLC boosted its stake in Molina Healthcare by 13.6% in the first quarter. Aperio Group LLC now owns 7,335 shares of the company’s stock worth $473,000 after buying an additional 879 shares in the last quarter. Nisa Investment Advisors L.L.C. boosted its stake in Molina Healthcare by 42.5% in the first quarter. Nisa Investment Advisors L.L.C. now owns 8,050 shares of the company’s stock worth $519,000 after buying an additional 2,400 shares in the last quarter. Teachers Advisors Inc. boosted its stake in Molina Healthcare by 209.7% in the first quarter. Teachers Advisors Inc. now owns 245,142 shares of the company’s stock worth $15,809,000 after buying an additional 166,000 shares in the last quarter. BlackRock Inc. boosted its stake in Molina Healthcare by 8.8% in the first quarter. BlackRock Inc. now owns 16,606 shares of the company’s stock worth $1,071,000 after buying an additional 1,344 shares in the last quarter. Finally, BlackRock Group LTD boosted its stake in Molina Healthcare by 16.7% in the first quarter. BlackRock Group LTD now owns 37,967 shares of the company’s stock worth $2,450,000 after buying an additional 5,428 shares in the last quarter. Institutional investors own 87.58% of the company’s stock.
About Molina Healthcare
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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