Molina Healthcare Inc (NYSE:MOH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Molina Healthcare suffers from rising medical care costs along with acute dependence on debt financing that has resulted in higher interest expenses draining the bottom line. Donald Trump’s decision of replacing the ObamaCare Act has resulted in an uncertain future of health care sector. The Zacks Consensus earnings estimate for both 2017 and 2018 has declined significantly over past 90 days. However, year to date, the shares gained 29% outperforming the Zacks classified Health Maintenance Organization that increased 21%. The company has been witnessing steady increase in premiums and service revenues over the past several quarters. Its several inorganic growth initiatives have paid off well. It will release the second quarter results On Aug 2, 2017. The Zacks Consensus Estimate is pegged at $0.86 for the second quarter reflecting a 29% year over year growth.”

Several other equities research analysts have also commented on the company. TheStreet upgraded Molina Healthcare from a “c” rating to a “b” rating in a research note on Tuesday, May 2nd. ValuEngine upgraded Molina Healthcare from a “hold” rating to a “buy” rating in a research report on Friday, June 2nd. Barclays PLC started coverage on Molina Healthcare in a research report on Tuesday, March 21st. They issued an “equal weight” rating and a $51.00 price target for the company. Jefferies Group LLC restated a “hold” rating and issued a $61.00 price target on shares of Molina Healthcare in a research report on Thursday, June 8th. Finally, Stifel Nicolaus upped their price target on Molina Healthcare from $45.00 to $47.00 and gave the company a “hold” rating in a research report on Wednesday, May 3rd. Four research analysts have rated the stock with a sell rating, seven have issued a hold rating and three have given a buy rating to the company’s stock. Molina Healthcare has a consensus rating of “Hold” and an average price target of $59.23.

Molina Healthcare (MOH) traded down 0.265% during mid-day trading on Tuesday, hitting $69.725. The company had a trading volume of 156,921 shares. Molina Healthcare has a 12 month low of $42.56 and a 12 month high of $72.15. The company has a 50-day moving average price of $68.04 and a 200 day moving average price of $56.55. The firm has a market capitalization of $3.97 billion, a P/E ratio of 37.466 and a beta of 0.91.

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In other news, insider William Dentino sold 66,000 shares of Molina Healthcare stock in a transaction that occurred on Thursday, July 6th. The shares were sold at an average price of $68.68, for a total transaction of $4,532,880.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Terry Bayer sold 415 shares of Molina Healthcare stock in a transaction that occurred on Monday, July 3rd. The shares were sold at an average price of $69.24, for a total transaction of $28,734.60. Following the sale, the chief operating officer now owns 80,672 shares of the company’s stock, valued at $5,585,729.28. The disclosure for this sale can be found here. In the last 90 days, insiders sold 174,042 shares of company stock valued at $11,791,712. 6.20% of the stock is owned by insiders.

A number of hedge funds have recently added to or reduced their stakes in MOH. Vanguard Group Inc. boosted its stake in Molina Healthcare by 5.0% in the first quarter. Vanguard Group Inc. now owns 3,553,229 shares of the company’s stock valued at $162,028,000 after buying an additional 170,294 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Molina Healthcare by 12.8% in the first quarter. Dimensional Fund Advisors LP now owns 2,488,977 shares of the company’s stock valued at $113,498,000 after buying an additional 282,144 shares during the last quarter. Alliancebernstein L.P. boosted its stake in Molina Healthcare by 1.7% in the first quarter. Alliancebernstein L.P. now owns 1,908,612 shares of the company’s stock valued at $87,033,000 after buying an additional 31,548 shares during the last quarter. Victory Capital Management Inc. boosted its stake in Molina Healthcare by 20.0% in the first quarter. Victory Capital Management Inc. now owns 1,583,018 shares of the company’s stock valued at $72,186,000 after buying an additional 263,892 shares during the last quarter. Finally, Tiedemann Wealth Management LLC boosted its stake in Molina Healthcare by 3.1% in the first quarter. Tiedemann Wealth Management LLC now owns 1,408,414 shares of the company’s stock valued at $64,224,000 after buying an additional 42,301 shares during the last quarter. 93.05% of the stock is owned by hedge funds and other institutional investors.

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, which includes its Pathways Health and Community Support LLC (Pathways) business.

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