Molina Healthcare (NYSE:MOH) Stock Rating Raised to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Molina Healthcare from “Sell” to “Hold,” while the broader analyst consensus remains “Hold,” with 13 Hold, three Buy and two Sell ratings and an average price target of $209.62.
• Molina exceeded third-quarter expectations, reporting $0.89 in adjusted EPS versus $0.79 expected and $11.08 billion in revenue versus $10.86 billion estimated. However, revenue declined 3.4% year over year and EPS fell from $1.84, reflecting ongoing profitability pressure.
• The stock opened at $208.96 after falling 3.5%, while analysts cited membership declines, elevated medical costs and Medicaid rate uncertainty as key risks; institutional investors continue to hold a substantial 98.5% stake.

Molina Healthcare (NYSE:MOH - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other research firms have also recently commented on MOH. Royal Bank Of Canada upped their price objective on shares of Molina Healthcare from $218.00 to $222.00 and gave the company a "sector perform" rating in a research report on Friday. Sanford C. Bernstein set a $286.00 price objective on Molina Healthcare in a report on Monday, July 13th. Truist Financial decreased their price objective on Molina Healthcare from $250.00 to $225.00 and set a "hold" rating for the company in a research report on Friday, July 24th. Barclays lowered their target price on Molina Healthcare from $180.00 to $178.00 and set an "underweight" rating for the company in a research note on Friday. Finally, Robert W. Baird set a $198.00 target price on shares of Molina Healthcare in a report on Friday. Three equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $209.62.

Molina Healthcare Trading Down 3.5%

MOH opened at $208.96 on Friday. Molina Healthcare has a 1-year low of $121.06 and a 1-year high of $244.89. The stock has a market capitalization of $10.91 billion, a PE ratio of 108.32, a PEG ratio of 31.26 and a beta of 0.78. The company has a current ratio of 1.69, a quick ratio of 1.68 and a debt-to-equity ratio of 0.95. The firm has a 50-day moving average price of $200.65 and a two-hundred day moving average price of $196.15.

Molina Healthcare (NYSE:MOH - Get Free Report) last announced its earnings results on Wednesday, October 21st. The company reported $0.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.79 by $0.10. Molina Healthcare had a negative net margin of 0.11% and a positive return on equity of 2.50%. The company had revenue of $11.08 billion for the quarter, compared to analyst estimates of $10.86 billion. During the same period in the prior year, the business earned $1.84 earnings per share. Molina Healthcare's quarterly revenue was down 3.4% on a year-over-year basis. As a group, equities analysts anticipate that Molina Healthcare will post 5.25 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Fortitude Family Office LLC increased its stake in shares of Molina Healthcare by 63.7% during the 3rd quarter. Fortitude Family Office LLC now owns 131 shares of the company's stock worth $25,000 after purchasing an additional 51 shares during the last quarter. ARGA Investment Management LP lifted its stake in Molina Healthcare by 1.4% in the 1st quarter. ARGA Investment Management LP now owns 4,166 shares of the company's stock valued at $555,000 after purchasing an additional 59 shares during the last quarter. Wedmont Private Capital lifted its stake in Molina Healthcare by 3.6% in the 3rd quarter. Wedmont Private Capital now owns 1,918 shares of the company's stock valued at $375,000 after purchasing an additional 66 shares during the last quarter. Elevation Wealth Partners LLC lifted its stake in Molina Healthcare by 118.2% in the 2nd quarter. Elevation Wealth Partners LLC now owns 144 shares of the company's stock valued at $33,000 after purchasing an additional 78 shares during the last quarter. Finally, Quadrant Capital Group LLC grew its holdings in Molina Healthcare by 4.3% during the third quarter. Quadrant Capital Group LLC now owns 1,960 shares of the company's stock worth $411,000 after purchasing an additional 80 shares during the period. Institutional investors own 98.50% of the company's stock.

Trending Headlines about Molina Healthcare

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

• Positive Sentiment: Third-quarter adjusted EPS came in at $0.89, ahead of estimates, while revenue of $11.08 billion also exceeded expectations. The company reaffirmed its broader outlook, supporting confidence that Medicaid margins are stabilizing. Molina Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management outlined at least $45 billion of premium revenue for 2027, while its earnings “building blocks” totaled more than $9.50 per share. The outlook suggests potential for growth from premium expansion, Medicaid rate increases and improved margins. Molina Outlines 2027 Premium and EPS Outlook
• Positive Sentiment: Bank of America Securities maintained a Buy rating on MOH, indicating that some analysts view the recent weakness as an opportunity despite near-term cost pressures. Bank of America Maintains Buy Rating
• Neutral Sentiment: Molina updated fiscal 2026 EPS guidance to approximately $5.25, broadly in line with the $5.26 consensus estimate. The limited change reduces the likelihood of a major earnings-estimate reset but offers little new upside catalyst.
• Neutral Sentiment: Analyst opinion remains divided: Morgan Stanley raised its price target from $167 to $192 but retained an Equal Weight rating, while other coverage remains more constructive. Morgan Stanley Raises Molina Price Target
• Negative Sentiment: Net income fell sharply year over year to about $38 million, and revenue declined 3.4% from the prior-year quarter. Earnings also dropped from $1.84 per share a year earlier, highlighting continued profitability pressure despite the quarterly beat. Molina Reports Q3 Net Income Decline
• Negative Sentiment: Membership shrinkage, elevated medical costs and uncertainty around Medicaid rate timing remain key risks. Morgan Stanley’s target is below the current trading level, reinforcing valuation concerns and helping explain the pressure on MOH shares.

About Molina Healthcare

Molina Healthcare, Inc is a managed-care company that provides health insurance and related services primarily through government-sponsored programs. Its offerings include Medicaid, Medicare, Medicare-Medicaid dual-eligible plans and health plans sold through government marketplaces under the Affordable Care Act.

The company's services generally include medical care coordination, behavioral health support, pharmacy benefits and, depending on the plan and state, dental and vision benefits.

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