Molina Healthcare (MOH) Cut to Hold at Zacks Investment Research

Molina Healthcare (NYSE:MOH) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Friday.

According to Zacks, “Molina Healthcare’s shares have outperformed the industry in a year's time. The company’s growing top line, backed by consistent membership rise, positions it for long- term growth. Its inorganic strategies also remain accretive to the revenue base. The company has begun an enterprise-wide restructuring program to reduce expenses and improve overall operational efficiency. However, Molina Healthcare suffers from rising medical care costs along with acute dependence on debt financing that have resulted in higher interest expenses, draining the bottom line. The company will release fourth quarter results on Feb 12, 2017, after market closes.”

MOH has been the topic of several other reports. ValuEngine upgraded shares of Molina Healthcare from a “hold” rating to a “buy” rating in a research note on Thursday, November 9th. BMO Capital Markets began coverage on shares of Molina Healthcare in a research note on Monday, October 16th. They issued a “market perform” rating and a $70.00 target price on the stock. Morgan Stanley lowered their target price on shares of Molina Healthcare from $97.00 to $94.00 and set an “overweight” rating on the stock in a research note on Wednesday. Raymond James Financial reissued a “hold” rating on shares of Molina Healthcare in a report on Friday, December 8th. Finally, Leerink Swann increased their price target on shares of Molina Healthcare from $100.00 to $105.00 and gave the stock an “outperform” rating in a report on Tuesday, January 9th. Three analysts have rated the stock with a sell rating, eleven have given a hold rating and four have assigned a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average price target of $71.21.

Molina Healthcare (NYSE MOH) traded up $0.49 during midday trading on Friday, reaching $78.44. 1,440,000 shares of the company’s stock traded hands, compared to its average volume of 1,300,000. Molina Healthcare has a fifty-two week low of $42.56 and a fifty-two week high of $93.98. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 1.06. The stock has a market cap of $4,480.00, a PE ratio of -14.88, a PEG ratio of 0.94 and a beta of 1.10.

In related news, Director John C. Molina sold 5,385 shares of the stock in a transaction on Friday, January 26th. The shares were sold at an average price of $92.88, for a total transaction of $500,158.80. Following the transaction, the director now owns 414,151 shares of the company’s stock, valued at approximately $38,466,344.88. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Jeff D. Barlow sold 5,000 shares of the stock in a transaction on Monday, November 13th. The shares were sold at an average price of $76.82, for a total transaction of $384,100.00. The disclosure for this sale can be found here. Insiders sold a total of 776,455 shares of company stock worth $61,614,520 in the last three months. Insiders own 6.20% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in the stock. Ameritas Investment Partners Inc. grew its holdings in shares of Molina Healthcare by 2.2% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 16,659 shares of the company’s stock valued at $1,152,000 after purchasing an additional 364 shares during the last quarter. Thrivent Financial For Lutherans grew its holdings in shares of Molina Healthcare by 6.3% during the 2nd quarter. Thrivent Financial For Lutherans now owns 8,580 shares of the company’s stock valued at $594,000 after purchasing an additional 510 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in shares of Molina Healthcare by 40.3% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,404 shares of the company’s stock valued at $184,000 after purchasing an additional 690 shares during the last quarter. Moody Aldrich Partners LLC grew its holdings in Molina Healthcare by 14.4% in the 3rd quarter. Moody Aldrich Partners LLC now owns 5,973 shares of the company’s stock worth $411,000 after acquiring an additional 753 shares during the last quarter. Finally, Comerica Bank grew its holdings in Molina Healthcare by 2.8% in the 3rd quarter. Comerica Bank now owns 34,098 shares of the company’s stock worth $2,273,000 after acquiring an additional 939 shares during the last quarter. 96.22% of the stock is currently owned by institutional investors.

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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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