Zacks Investment Research upgraded shares of Molina Healthcare Inc. (NYSE:MOH) from a hold rating to a buy rating in a research note published on Tuesday. They currently have $64.00 price target on the stock.
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 brokerages have also recently commented on MOH. Cantor Fitzgerald reaffirmed a hold rating and set a $55.00 target price on shares of Molina Healthcare in a report on Friday, July 29th. Jefferies Group upped their target price on shares of Molina Healthcare from $63.00 to $70.00 and gave the company a buy rating in a report on Tuesday, September 13th. Goldman Sachs Group Inc. raised shares of Molina Healthcare from a sell rating to a neutral rating and upped their target price for the company from $51.00 to $58.00 in a report on Monday, September 19th. Credit Suisse Group AG reissued a hold rating on shares of Molina Healthcare in a research note on Tuesday, June 28th. Finally, Leerink Swann reissued a buy rating on shares of Molina Healthcare in a research note on Thursday, July 28th. One analyst has rated the stock with a sell rating, six have issued a hold rating and five have issued a buy rating to the company. Molina Healthcare has an average rating of Hold and a consensus target price of $62.80.
Molina Healthcare (NYSE:MOH) traded down 0.69% during mid-day trading on Tuesday, hitting $57.69. 46,793 shares of the stock were exchanged. The company has a 50-day moving average of $56.29 and a 200-day moving average of $55.13. The stock has a market capitalization of $3.28 billion, a PE ratio of 24.97 and a beta of 1.67. Molina Healthcare has a 52 week low of $44.50 and a 52 week high of $70.82.
Molina Healthcare (NYSE:MOH) last announced its earnings results on Wednesday, July 27th. The company reported $0.67 EPS for the quarter, beating the Zacks’ consensus estimate of $0.49 by $0.18. Molina Healthcare had a net margin of 0.83% and a return on equity of 9.60%. 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 company earned $0.72 earnings per share. The firm’s revenue was up 23.7% on a year-over-year basis. On average, equities analysts predict that Molina Healthcare will post $2.74 EPS for the current fiscal year.
In other Molina Healthcare news, insider Joseph W. Cpa White sold 6,676 shares of the stock in a transaction on Thursday, August 4th. The shares were sold at an average price of $58.48, for a total transaction of $390,412.48. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ronna Romney sold 750 shares of the stock in a transaction on Thursday, July 28th. The shares were sold at an average price of $55.00, for a total transaction of $41,250.00. The disclosure for this sale can be found here. Company insiders own 6.89% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. Ladenburg Thalmann Financial Services Inc. raised 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 period. BlackRock Japan Co. Ltd raised 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 period. Advance Capital I Inc. acquired a new position in Molina Healthcare during the second quarter valued at approximately $215,000. Wright Investors Service Inc. acquired a new position in Molina Healthcare during the second quarter valued at approximately $224,000. Finally, Cambridge Investment Research Advisors Inc. acquired a new position in Molina Healthcare during the second quarter valued at approximately $237,000. Institutional investors and hedge funds own 87.58% of the company’s stock.
About Molina Healthcare
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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