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.”
Other research analysts have also issued research reports about the company. Jefferies Group restated a “buy” rating and issued a $63.00 target price (down previously from $66.00) on shares of Molina Healthcare in a report on Thursday, July 28th. Leerink Swann reiterated a “buy” rating on shares of Molina Healthcare in a report on Thursday, July 28th. Cantor Fitzgerald reiterated a “hold” rating and set a $55.00 price target on shares of Molina Healthcare in a report on Friday, July 29th. Credit Suisse Group AG reiterated a “hold” rating on shares of Molina Healthcare in a report on Tuesday, June 28th. Finally, Goldman Sachs Group Inc. upgraded Molina Healthcare from a “sell” rating to a “neutral” rating and lifted their price target for the stock from $51.00 to $58.00 in a report on Monday, September 19th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and four have issued a buy rating to the stock. Molina Healthcare presently has a consensus rating of “Hold” and a consensus target price of $62.80.
Shares of Molina Healthcare (NYSE:MOH) opened at 56.49 on Monday. The firm has a market capitalization of $3.21 billion, a price-to-earnings ratio of 24.45 and a beta of 1.53. The stock’s 50 day moving average price is $56.23 and its 200 day moving average price is $54.87. Molina Healthcare has a 12-month low of $44.50 and a 12-month high of $70.82.
Molina Healthcare (NYSE:MOH) last posted its earnings results on Wednesday, July 27th. The company reported $0.67 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.49 by $0.18. Molina Healthcare had a return on equity of 9.60% and a net margin of 0.83%. The company had revenue of $4.36 billion for the quarter, compared to analyst estimates of $4.35 billion. During the same quarter last year, the company earned $0.72 earnings per share. The company’s revenue for the quarter was up 23.7% on a year-over-year basis. Equities research analysts expect that Molina Healthcare will post $2.74 earnings per share for the current year.
In other news, Director Garrey Carruthers sold 1,600 shares of Molina Healthcare stock in a transaction on Tuesday, September 13th. The stock was sold at an average price of $55.46, for a total value of $88,736.00. Following the completion of the transaction, the director now directly owns 9,508 shares in the company, valued at $527,313.68. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Ronna Romney sold 750 shares of Molina Healthcare stock in a transaction on Thursday, July 28th. The shares were sold at an average price of $55.00, for a total value of $41,250.00. The disclosure for this sale can be found here. 6.89% of the stock is owned by company insiders.
Several institutional investors have recently made changes to their positions in MOH. Renaissance Technologies LLC boosted its position in shares of 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 period. HBK Investments L P boosted its position in shares of 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 period. Rafferty Asset Management LLC bought a new position in shares of Molina Healthcare during the first quarter valued at $2,311,000. Menta Capital LLC boosted its position in shares of 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 period. Finally, NN Investment Partners Holdings N.V. bought a new position in shares of Molina Healthcare during the first quarter valued at $835,000. 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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