Molina Healthcare (NYSE:MOH) Issues Earnings Results, Beats Expectations By $0.12 EPS

Molina Healthcare (NYSE:MOH) announced its quarterly earnings data on Wednesday. The company reported $1.51 earnings per share for the quarter, beating analysts’ consensus estimates of $1.39 by $0.12, FiscalAI reports. Molina Healthcare had a positive return on equity of 3.74% and a negative net margin of 0.02%.The company had revenue of $10.87 billion for the quarter, compared to analyst estimates of $10.83 billion. During the same quarter in the previous year, the company earned $5.48 EPS. The firm’s revenue for the quarter was down 4.8% compared to the same quarter last year.

Molina Healthcare Stock Down 9.7%

MOH stock opened at $200.30 on Friday. The stock 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 quick ratio of 1.63 and a current ratio of 1.63. Molina Healthcare has a one year low of $121.06 and a one year high of $244.89. The company has a 50 day moving average price of $205.93 and a two-hundred day moving average price of $176.87.

Insiders Place Their Bets

In related news, insider Jeff D. Barlow sold 17,811 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $186.12, for a total transaction of $3,314,983.32. Following the transaction, the insider directly owned 67,175 shares in the company, valued at approximately $12,502,611. This represents a 20.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO Maurice Hebert sold 600 shares of Molina Healthcare stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $191.55, for a total value of $114,930.00. Following the completion of the sale, the chief accounting officer owned 12,815 shares of the company’s stock, valued at $2,454,713.25. This trade represents a 4.47% decrease in their position. The SEC filing for this sale provides additional information. 1.44% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC lifted 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. T. Rowe Price Investment Management Inc. grew its stake in Molina Healthcare by 10.2% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,171,433 shares of the company’s stock worth $376,831,000 after buying an additional 201,772 shares during the period. Invesco Ltd. grew its stake in Molina Healthcare by 24.2% during the fourth quarter. Invesco Ltd. now owns 1,690,981 shares of the company’s stock worth $293,453,000 after buying an additional 329,679 shares during the period. Victory Capital Management Inc. lifted its holdings in shares of Molina Healthcare by 46.4% during the 4th quarter. Victory Capital Management Inc. now owns 1,410,604 shares of the company’s stock valued at $244,796,000 after acquiring an additional 447,078 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in Molina Healthcare by 20.1% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,127,761 shares of the company’s stock valued at $195,704,000 after purchasing an additional 189,084 shares in the last quarter. Institutional investors and hedge funds own 98.50% of the company’s stock.

Analyst Ratings Changes

MOH has been the subject of several research analyst reports. Truist Financial increased their price objective on Molina Healthcare from $205.00 to $250.00 and gave the stock a “hold” rating in a research report on Tuesday, July 14th. JPMorgan Chase & Co. boosted their price objective on shares of Molina Healthcare from $169.00 to $191.00 and gave the stock a “neutral” rating in a report on Monday, June 8th. Robert W. Baird upped their target price on shares of Molina Healthcare from $124.00 to $163.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. UBS Group boosted their price target on Molina Healthcare from $180.00 to $202.00 and gave the stock a “neutral” rating in a research note on Friday, May 22nd. Finally, Cantor Fitzgerald lifted their price objective on Molina Healthcare from $144.00 to $209.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Three analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $207.06.

More Molina Healthcare News

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

• Positive Sentiment: Molina beat Q2 earnings expectations, reporting $1.51 per share versus estimates around $1.37 to $1.39, and revenue of $10.87 billion also came in slightly ahead of forecasts. Molina Healthcare earnings release
• Positive Sentiment: The company raised its full-year earnings outlook, helped by lower operating expenses and improving Medicaid stabilization, which suggests management sees some margin support ahead. Zacks article
• Neutral Sentiment: Analysts now rate Molina a consensus “Hold,” indicating the Street is waiting for clearer evidence that its earnings power can reaccelerate. Consensus recommendation article
• Negative Sentiment: Investors were disappointed by declining membership and lower premium revenue, especially in Molina’s Obamacare/exchange business, which the company expects to shrink materially. Reuters article
• Negative Sentiment: Despite the earnings beat, shares sold off because the revenue outlook and membership trends overshadowed the better-than-expected EPS, keeping pressure on the stock. Weak guidance article

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.