Molina Healthcare Inc. (MOH) Downgraded by Zacks Investment Research
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 research firms have also commented on MOH. Cantor Fitzgerald reaffirmed a hold rating and set a $55.00 target price on shares of Molina Healthcare in a report on Friday, July 29th. Jefferies Group upped their target price on Molina Healthcare from $63.00 to $70.00 and gave the company a buy rating in a report on Tuesday, September 13th. Goldman Sachs Group Inc. raised Molina Healthcare from a sell rating to a neutral rating and upped their target price for the company from $51.00 to $58.00 in a report on Monday, September 19th. Credit Suisse Group AG reiterated a hold rating on shares of Molina Healthcare in a research report on Tuesday, June 28th. Finally, Leerink Swann reiterated a buy rating on shares of Molina Healthcare in a research report on Thursday, July 28th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the company’s stock. The stock currently has an average rating of Hold and a consensus price target of $62.80.
Molina Healthcare (NYSE:MOH) opened at 57.11 on Monday. Molina Healthcare has a 52-week low of $44.50 and a 52-week high of $70.82. The stock has a market cap of $3.24 billion, a P/E ratio of 24.72 and a beta of 1.54. The firm’s 50-day moving average price is $56.23 and its 200 day moving average price is $54.88.
Molina Healthcare (NYSE:MOH) last posted its earnings results on Wednesday, July 27th. The company reported $0.67 EPS for the quarter, beating the Thomson Reuters’ 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 business’s revenue was up 23.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.72 earnings per share. Equities analysts predict that Molina Healthcare will post $2.74 earnings per share for the current year.
In other news, insider Joseph W. Cpa White sold 6,676 shares of the stock in a transaction on Thursday, August 4th. The stock was sold at an average price of $58.48, for a total transaction of $390,412.48. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Garrey Carruthers sold 1,600 shares of the 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 sale, the director now owns 9,508 shares of the company’s stock, valued at approximately $527,313.68. The disclosure for this sale can be found here. 6.89% of the stock is owned by company insiders.
Several large investors have recently made changes to their positions in the stock. Northwestern Mutual Investment Management Company LLC increased its stake in shares of Molina Healthcare by 0.7% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 7,131 shares of the company’s stock worth $356,000 after buying an additional 53 shares during the period. BlackRock Japan Co. Ltd increased 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 period. CT Mason increased its stake in shares of Molina Healthcare by 0.3% in the second quarter. CT Mason now owns 67,952 shares of the company’s stock worth $3,391,000 after buying an additional 189 shares during the period. GSA Capital Partners LLP increased its stake in shares of Molina Healthcare by 1.4% in the second quarter. GSA Capital Partners LLP now owns 13,892 shares of the company’s stock worth $693,000 after buying an additional 192 shares during the period. Finally, Advisors Asset Management Inc. increased its stake in shares of Molina Healthcare by 0.7% in the second quarter. Advisors Asset Management Inc. now owns 29,953 shares of the company’s stock worth $1,495,000 after buying an additional 197 shares during the period. Institutional investors own 87.58% of the company’s stock.
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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