Molina Healthcare (NYSE:MOH) Stock Price Down 11.2% – Here’s Why

Molina Healthcare, Inc (NYSE:MOH)’s share price traded down 11.2% during mid-day trading on Thursday . The stock traded as low as $203.50 and last traded at $196.8740. Approximately 299,767 shares changed hands during trading, a decline of 80% from the average daily volume of 1,528,953 shares. The stock had previously closed at $221.74.

Key Stories Impacting Molina Healthcare

Here are the key news stories impacting Molina Healthcare this week:

• Positive Sentiment: Molina reported Q2 EPS of $1.51, topping estimates, and revenue of $10.87 billion also came in slightly above Wall Street expectations. Article Title
• Positive Sentiment: The company said its annual profit forecast was lifted as Medicaid trends stabilized, which could support longer-term earnings visibility. Article Title
• Neutral Sentiment: Analysts noted that Q2 sales were broadly in line with expectations, suggesting the quarter was solid but not a major upside surprise on the revenue side. Article Title
• Negative Sentiment: Investor sentiment weakened after Molina’s revenue outlook disappointed, overshadowing the earnings beat and raising concerns about near-term growth. Article Title
• Negative Sentiment: Reuters also highlighted concerns around Obamacare and Medicaid businesses, with lower membership and higher medical costs pressuring profitability and driving the stock lower. Article Title

Analyst Ratings Changes

MOH has been the subject of a number of research reports. Morgan Stanley upped their target price on shares of Molina Healthcare from $146.00 to $167.00 and gave the company an “equal weight” rating in a report on Thursday, June 4th. Zacks Research raised Molina Healthcare from a “strong sell” rating to a “hold” rating in a report on Monday, April 20th. Royal Bank Of Canada boosted their price target on Molina Healthcare from $216.00 to $248.00 and gave the company a “sector perform” rating in a research report on Thursday, July 9th. Weiss Ratings raised Molina Healthcare from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, June 25th. Finally, Jefferies Financial Group set a $230.00 price objective on Molina Healthcare in a research report on Tuesday, July 14th. Three equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Molina Healthcare has an average rating of “Hold” and a consensus target price of $207.06.

Molina Healthcare Stock Down 12.4%

The company has a market capitalization of $10.12 billion, a price-to-earnings ratio of 57.72 and a beta of 0.74. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 0.97. The firm’s 50 day simple moving average is $205.66 and its 200-day simple moving average is $176.72.

Molina Healthcare (NYSE:MOH) last released its earnings results on Wednesday, July 22nd. The company reported $1.51 EPS for the quarter, topping the consensus estimate of $1.39 by $0.12. The company had revenue of $10.87 billion during the quarter, compared to analysts’ expectations of $10.83 billion. Molina Healthcare had a net margin of 0.42% and a return on equity of 8.76%. The business’s revenue was down 4.8% on a year-over-year basis. During the same quarter last year, the business earned $5.48 EPS. On average, sell-side analysts anticipate that Molina Healthcare, Inc will post 5.23 EPS for the current fiscal year.

Insider Activity

In related news, insider Jeff D. Barlow sold 17,811 shares of the firm’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $186.12, for a total value of $3,314,983.32. Following the completion of the sale, the insider owned 67,175 shares in the company, valued at $12,502,611. This trade represents a 20.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Maurice Hebert sold 600 shares of the firm’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $191.55, for a total transaction of $114,930.00. Following the completion of the sale, the chief accounting officer owned 12,815 shares of the company’s stock, valued at approximately $2,454,713.25. The trade was a 4.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.44% of the company’s stock.

Institutional Trading of Molina Healthcare

Several hedge funds have recently modified their holdings of MOH. 7G Capital Management LLC purchased a new position in shares of Molina Healthcare during the 4th quarter worth $1,735,000. BNP Paribas Financial Markets increased its stake in shares of Molina Healthcare by 63.0% during the 4th quarter. BNP Paribas Financial Markets now owns 439,371 shares of the company’s stock valued at $76,248,000 after acquiring an additional 169,739 shares during the last quarter. Assenagon Asset Management S.A. increased its position in Molina Healthcare by 241.2% during the fourth quarter. Assenagon Asset Management S.A. now owns 271,224 shares of the company’s stock worth $47,068,000 after purchasing an additional 191,731 shares during the last quarter. Allspring Global Investments Holdings LLC raised its stake in Molina Healthcare by 27.4% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 38,913 shares of the company’s stock worth $6,944,000 after purchasing an additional 8,381 shares during the period. Finally, SG Americas Securities LLC raised its stake in Molina Healthcare by 923.3% during the fourth quarter. SG Americas Securities LLC now owns 87,220 shares of the company’s stock worth $15,136,000 after purchasing an additional 78,697 shares during the period. 98.50% of the stock is owned by institutional investors and hedge funds.

Molina Healthcare Company Profile

Molina Healthcare, Inc is a managed care company specializing in government-sponsored health insurance programs. The company offers Medicaid managed care plans, Medicare Advantage and prescription drug plans, and individual Marketplace plans under the Affordable Care Act. Through an integrated care model, Molina emphasizes preventive and primary care services, care coordination, and disease management to improve health outcomes for its members.

The company traces its roots to the early 1980s, when Dr.