Molina Healthcare Inc. (MOH) Stock Rating Upgraded by Zacks Investment Research
Molina Healthcare Inc. (NYSE:MOH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday. The firm presently has a $64.00 target price on the stock. Zacks Investment Research’s price objective points to a potential upside of 9.98% from the company’s previous close.
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.”
A number of other equities research analysts have also weighed in on MOH. Leerink Swann reissued an “outperform” rating and set a $75.00 target price on shares of Molina Healthcare in a report on Wednesday, June 15th. Credit Suisse Group AG reissued a “hold” rating on shares of Molina Healthcare in a report on Tuesday, June 28th. Jefferies Group reissued a “buy” rating and set a $63.00 target price (down from $66.00) on shares of Molina Healthcare in a report on Thursday, July 28th. Cantor Fitzgerald reissued a “hold” rating and set a $55.00 target price on shares of Molina Healthcare in a report on Friday, July 29th. Finally, Goldman Sachs Group Inc. raised shares of Molina Healthcare from a “sell” rating to a “neutral” rating and boosted their target price for the stock from $51.00 to $58.00 in a report on Monday, September 19th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and five have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $62.80.
Shares of Molina Healthcare (NYSE:MOH) opened at 58.19 on Tuesday. The firm has a market capitalization of $3.31 billion, a price-to-earnings ratio of 25.19 and a beta of 1.67. Molina Healthcare has a 12-month low of $44.50 and a 12-month high of $70.82. The firm has a 50-day moving average of $56.29 and a 200 day moving average of $55.15.
Molina Healthcare (NYSE:MOH) last released its quarterly earnings data on Wednesday, July 27th. The company reported $0.67 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.49 by $0.18. The business earned $4.36 billion during the quarter, compared to analysts’ expectations of $4.35 billion. Molina Healthcare had a net margin of 0.83% and a return on equity of 9.60%. The firm’s quarterly 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 EPS. On average, equities research analysts expect that Molina Healthcare will post $2.74 earnings per share for the current year.
In other Molina Healthcare news, COO Terry Bayer sold 8,250 shares of the company’s stock in a transaction on Tuesday, August 2nd. The shares were sold at an average price of $58.00, for a total transaction of $478,500.00. Following the transaction, the chief operating officer now owns 176,834 shares in the company, valued at $10,256,372. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Steven J. Orlando sold 2,500 shares of the company’s stock in a transaction on Monday, August 8th. The stock was sold at an average price of $58.82, for a total transaction of $147,050.00. The disclosure for this sale can be found here. Corporate insiders own 6.89% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Ladenburg Thalmann Financial Services Inc. increased its position in Molina Healthcare by 168.4% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 1,581 shares of the company’s stock valued at $102,000 after buying an additional 992 shares during the last quarter. BlackRock Japan Co. Ltd increased its position in Molina Healthcare by 9.0% in the first quarter. BlackRock Japan Co. Ltd now owns 1,848 shares of the company’s stock valued at $119,000 after buying an additional 152 shares during the last quarter. Advance Capital I Inc. acquired a new position in Molina Healthcare during the second quarter valued at $215,000. Wright Investors Service Inc. acquired a new position in Molina Healthcare during the second quarter valued at $224,000. Finally, Cambridge Investment Research Advisors Inc. acquired a new position in Molina Healthcare during the second quarter valued at $237,000. Hedge funds and other 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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