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

Molina Healthcare (NYSE:MOH) issued its quarterly earnings results on Wednesday. The company reported $1.51 EPS for the quarter, topping analysts’ consensus estimates of $1.39 by $0.12, FiscalAI reports. The company had revenue of $10.87 billion during the quarter, compared to analyst estimates of $10.83 billion. Molina Healthcare had a return on equity of 8.76% and a net margin of 0.42%.The company’s quarterly revenue was down 4.8% compared to the same quarter last year. During the same period in the previous year, the company earned $5.48 earnings per share.

Molina Healthcare Price Performance

Shares of MOH opened at $223.13 on Thursday. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 0.97. The company’s fifty day simple moving average is $205.66 and its 200 day simple moving average is $176.72. Molina Healthcare has a 1-year low of $121.06 and a 1-year high of $244.89. The company has a market cap of $11.63 billion, a price-to-earnings ratio of 66.02 and a beta of 0.74.

Analysts Set New Price Targets

Several analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $129.00 price objective on shares of Molina Healthcare in a research note on Friday, April 24th. Zacks Research upgraded Molina Healthcare from a “strong sell” rating to a “hold” rating in a research report on Monday, April 20th. Weiss Ratings upgraded shares of Molina Healthcare from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, June 25th. Wall Street Zen raised shares of Molina Healthcare from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Finally, Mizuho set a $215.00 price objective on shares of Molina Healthcare in a report on Monday, June 8th. Three equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Molina Healthcare has an average rating of “Hold” and a consensus target price of $207.06.

Key Stories Impacting Molina Healthcare

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

• Positive Sentiment: Molina beat Q2 earnings expectations, reporting $1.51 EPS versus consensus near $1.37–$1.39, and revenue of $10.87 billion also came in slightly above estimates. Article Title
• Positive Sentiment: The company also raised its annual profit forecast, citing stabilization in Medicaid trends, which suggests some improvement in the core business outlook. Article Title
• Neutral Sentiment: Recent coverage also highlighted that Q2 sales were roughly in line with estimates, while investors continue to monitor key metrics such as membership trends and medical cost pressure. Article Title
• Negative Sentiment: Despite the earnings beat, the stock is under pressure because guidance and margin outlook were not strong enough to offset concerns about higher healthcare utilization, a rising medical care ratio, and weaker membership trends. Article Title
• Negative Sentiment: Investors were also cautious heading into the report, worried that Medicaid and exchange-enrollment trends could weigh on future results, which helped pressure MOH shares. Article Title

Insider Activity at Molina Healthcare

In other news, CAO Maurice Hebert sold 600 shares of the firm’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $191.55, for a total transaction of $114,930.00. Following the completion of the sale, the chief accounting officer owned 12,815 shares in the company, valued at approximately $2,454,713.25. This trade represents a 4.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jeff D. Barlow sold 17,811 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $186.12, for a total value of $3,314,983.32. Following the transaction, the insider owned 67,175 shares in the company, valued at approximately $12,502,611. This trade represents a 20.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.44% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. T. Rowe Price Investment Management Inc. grew its stake in shares of Molina Healthcare by 10.2% in 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 purchasing an additional 201,772 shares during the last quarter. Invesco Ltd. raised its position in shares of 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 acquiring an additional 329,679 shares during the last quarter. Corient Private Wealth LLC lifted its stake in shares of Molina Healthcare by 38.9% in the fourth quarter. Corient Private Wealth LLC now owns 10,220 shares of the company’s stock worth $1,654,000 after acquiring an additional 2,864 shares during the period. Alberta Investment Management Corp acquired a new position in shares of Molina Healthcare in the fourth quarter worth approximately $1,562,000. Finally, Beacon Pointe Advisors LLC boosted its holdings in Molina Healthcare by 9.9% in the fourth quarter. Beacon Pointe Advisors LLC now owns 1,416 shares of the company’s stock valued at $246,000 after acquiring an additional 128 shares during the last quarter. Institutional investors own 98.50% of the company’s stock.

Molina Healthcare Company Profile

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.