Molina Healthcare Inc. (MOH) Downgraded to “Hold” at Zacks Investment Research
Molina Healthcare Inc. (NYSE:MOH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.
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 analysts also recently weighed in on MOH. Leerink Swann reaffirmed an “outperform” rating and set a $75.00 price target on shares of Molina Healthcare in a research report on Wednesday, June 15th. Credit Suisse Group AG reaffirmed a “hold” rating on shares of Molina Healthcare in a research report on Tuesday, June 28th. Jefferies Group reaffirmed a “buy” rating and set a $63.00 price target (down previously from $66.00) on shares of Molina Healthcare in a research report on Thursday, July 28th. Cantor Fitzgerald reaffirmed a “hold” rating and set a $55.00 price target on shares of Molina Healthcare in a research report on Friday, July 29th. Finally, Goldman Sachs Group Inc. raised Molina Healthcare from a “sell” rating to a “neutral” rating and upped their price target for the stock from $51.00 to $58.00 in a research report on Monday, September 19th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and four have given a buy rating to the company. The company has an average rating of “Hold” and an average target price of $62.80.
Shares of Molina Healthcare (NYSE:MOH) traded down 2.43% during trading on Monday, reaching $56.90. 154,376 shares of the company were exchanged. The company has a 50 day moving average price of $56.30 and a 200-day moving average price of $55.11. Molina Healthcare has a one year low of $44.50 and a one year high of $70.82. The stock has a market capitalization of $3.23 billion, a price-to-earnings ratio of 24.63 and a beta of 1.53.
Molina Healthcare (NYSE:MOH) last posted its earnings results on Wednesday, July 27th. The company reported $0.67 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.49 by $0.18. Molina Healthcare had a return on equity of 9.60% and a net margin of 0.83%. The business earned $4.36 billion during the quarter, compared to analysts’ expectations of $4.35 billion. During the same period in the prior year, the business earned $0.72 EPS. Molina Healthcare’s revenue for the quarter was up 23.7% compared to the same quarter last year. Equities analysts predict that Molina Healthcare will post $2.74 EPS for the current year.
In other Molina Healthcare news, Director Ronna Romney sold 750 shares of the firm’s stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $55.00, for a total transaction of $41,250.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Garrey Carruthers sold 1,600 shares of the firm’s stock in a transaction on Tuesday, September 13th. The shares were sold at an average price of $55.46, for a total value of $88,736.00. Following the sale, the director now directly owns 9,508 shares of the company’s stock, valued at approximately $527,313.68. The disclosure for this sale can be found here. Company insiders own 6.89% of the company’s stock.
A number of large investors have recently made changes to their positions in the stock. Renaissance Technologies LLC boosted its position in Molina Healthcare by 15.2% in the first quarter. Renaissance Technologies LLC now owns 1,208,150 shares of the company’s stock valued at $77,914,000 after buying an additional 159,572 shares during the last quarter. HBK Investments L P boosted its position in Molina Healthcare by 11.9% in the first quarter. HBK Investments L P now owns 9,174 shares of the company’s stock valued at $592,000 after buying an additional 974 shares during the last quarter. Rafferty Asset Management LLC purchased a new position in Molina Healthcare during the first quarter valued at $2,311,000. Menta Capital LLC boosted its position in Molina Healthcare by 37.1% in the first quarter. Menta Capital LLC now owns 22,489 shares of the company’s stock valued at $1,450,000 after buying an additional 6,089 shares during the last quarter. Finally, NN Investment Partners Holdings N.V. purchased a new position in Molina Healthcare during the first quarter valued at $835,000. 87.58% of the stock is owned by institutional investors and hedge funds.
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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