Molina Healthcare, Inc (NYSE:MOH) Receives Consensus Recommendation of “Hold” from Analysts

Molina Healthcare, Inc (NYSE:MOH) has been given an average rating of “Hold” by the seventeen ratings firms that are currently covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and three have given a buy rating to the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $207.0625.

MOH has been the topic of several recent research reports. Royal Bank Of Canada upped their price target on shares of Molina Healthcare from $216.00 to $248.00 and gave the company a “sector perform” rating in a report on Thursday, July 9th. Zacks Research raised Molina Healthcare from a “strong sell” rating to a “hold” rating in a report on Monday, April 20th. Robert W. Baird boosted their price objective on Molina Healthcare from $124.00 to $163.00 and gave the company a “neutral” rating in a report on Monday, May 11th. Barclays lowered their target price on Molina Healthcare from $199.00 to $184.00 and set an “underweight” rating on the stock in a research note on Wednesday, July 8th. Finally, Morgan Stanley raised their target price on Molina Healthcare from $146.00 to $167.00 and gave the stock an “equal weight” rating in a report on Thursday, June 4th.

Molina Healthcare Stock Down 9.7%

MOH stock opened at $200.30 on Friday. The firm’s fifty day simple moving average is $205.93 and its 200-day simple moving average is $176.87. The company has a market capitalization of $10.44 billion, a P/E ratio of -1,112.73 and a beta of 0.74. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.63 and a quick ratio of 1.63. Molina Healthcare has a 12 month low of $121.06 and a 12 month high of $244.89.

Molina Healthcare (NYSE:MOH) last released its quarterly earnings data on Wednesday, July 22nd. The company reported $1.51 earnings per share for the quarter, topping analysts’ consensus estimates of $1.39 by $0.12. Molina Healthcare had a negative net margin of 0.02% and a positive return on equity of 3.74%. The firm had revenue of $10.87 billion for the quarter, compared to analyst estimates of $10.83 billion. During the same quarter in the prior year, the business earned $5.48 earnings per share. The business’s quarterly revenue was down 4.8% compared to the same quarter last year. As a group, equities research analysts forecast that Molina Healthcare will post 5.23 earnings per share for the current year.

Insider Activity at Molina Healthcare

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC increased its stake in shares of Molina Healthcare by 217.0% in the 3rd quarter. AQR Capital Management LLC now owns 2,934,130 shares of the company’s stock valued at $561,475,000 after purchasing an additional 2,008,458 shares in the last quarter. 8 Knots Management LLC purchased a new position in Molina Healthcare during the fourth quarter worth approximately $198,942,000. Maverick Capital Ltd. purchased a new position in Molina Healthcare during the first quarter worth approximately $86,081,000. Madison Avenue Partners LP acquired a new stake in Molina Healthcare in the fourth quarter valued at approximately $110,003,000. Finally, Norges Bank acquired a new stake in Molina Healthcare in the fourth quarter valued at approximately $109,766,000. Hedge funds and other institutional investors own 98.50% of the company’s stock.

Molina Healthcare News Summary

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

• Positive Sentiment: Molina reported Q2 EPS of $1.51, topping analyst estimates, and revenue of $10.87 billion also came in slightly above forecasts. The company also raised its full-year earnings outlook, helped by lower operating expenses and steadier Medicaid performance. Article Title
• Neutral Sentiment: Management highlighted stronger Medicaid execution in the earnings call, which supports the core business and may help offset pressure in other lines. Article Title
• Neutral Sentiment: Some investors were already cautious ahead of the report, with trading activity reflecting worries about guidance, cost trends, and tougher year-over-year comparisons. Article Title
• Negative Sentiment: The main concern is weaker premium revenue and declining membership, especially in Molina’s Obamacare/exchange business, which has led the company to expect a smaller presence in that segment. Article Title
• Negative Sentiment: Reports also pointed to lower net income, a higher medical care ratio, and a weak revenue outlook, suggesting margin pressure may continue even after the earnings beat. Article Title

About Molina Healthcare

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.