Molina Healthcare (NYSE:MOH) Announces Earnings Results

Key Points

• Molina Healthcare reported a quarterly earnings of $1.84 per share, which was significantly below analysts' expectations of $3.82, marking a miss of $1.98.
• The company's stock traded down $2.23 to $194.58 following the earnings announcement, with a market capitalization of $10.55 billion.
• Analysts have mixed ratings on Molina, with three ratings as Buy, twelve as Hold, and a consensus target price of $222.15.

Molina Healthcare (NYSE:MOH - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $1.84 earnings per share for the quarter, missing analysts' consensus estimates of $3.97 by ($2.13), Zacks reports. Molina Healthcare had a net margin of 2.60% and a return on equity of 27.72%. The company had revenue of $11.48 billion during the quarter, compared to the consensus estimate of $10.99 billion. During the same quarter last year, the company earned $6.01 earnings per share. The business's revenue was up 11.0% on a year-over-year basis. Molina Healthcare updated its FY 2025 guidance to 14.000-14.000 EPS.

Molina Healthcare Stock Down 1.1%

Shares of Molina Healthcare stock opened at $194.58 on Thursday. Molina Healthcare has a 1 year low of $151.95 and a 1 year high of $359.97. The business has a 50-day moving average of $184.26 and a two-hundred day moving average of $241.71. The company has a market capitalization of $10.55 billion, a P/E ratio of 9.59 and a beta of 0.55. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.66 and a quick ratio of 1.66.

Insider Activity

In other Molina Healthcare news, COO James Woys purchased 10,000 shares of the stock in a transaction on Monday, August 4th. The stock was bought at an average cost of $155.94 per share, for a total transaction of $1,559,400.00. Following the completion of the acquisition, the chief operating officer directly owned 74,331 shares of the company's stock, valued at $11,591,176.14. The trade was a 15.54% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Ronna Romney sold 700 shares of Molina Healthcare stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $153.74, for a total value of $107,618.00. Following the completion of the sale, the director directly owned 17,131 shares in the company, valued at approximately $2,633,719.94. This represents a 3.93% decrease in their position. The disclosure for this sale can be found here. 1.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. MUFG Securities EMEA plc bought a new stake in Molina Healthcare in the 2nd quarter valued at $48,000. Smartleaf Asset Management LLC boosted its stake in Molina Healthcare by 30.4% in the 2nd quarter. Smartleaf Asset Management LLC now owns 690 shares of the company's stock valued at $205,000 after purchasing an additional 161 shares during the period. NewEdge Advisors LLC boosted its stake in Molina Healthcare by 33.4% in the 1st quarter. NewEdge Advisors LLC now owns 1,106 shares of the company's stock valued at $364,000 after purchasing an additional 277 shares during the period. Osaic Holdings Inc. raised its holdings in Molina Healthcare by 29.0% in the 2nd quarter. Osaic Holdings Inc. now owns 2,280 shares of the company's stock valued at $682,000 after acquiring an additional 513 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its position in shares of Molina Healthcare by 37.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,951 shares of the company's stock valued at $581,000 after acquiring an additional 528 shares during the period. Institutional investors and hedge funds own 98.50% of the company's stock.

Analyst Ratings Changes

MOH has been the topic of a number of recent analyst reports. Truist Financial set a $210.00 price objective on Molina Healthcare in a research note on Tuesday, October 14th. Cantor Fitzgerald reissued a "neutral" rating and issued a $210.00 price objective on shares of Molina Healthcare in a research note on Tuesday, August 26th. Wall Street Zen lowered Molina Healthcare from a "buy" rating to a "hold" rating in a research note on Sunday, June 29th. Barclays reduced their price objective on Molina Healthcare from $186.00 to $185.00 and set an "equal weight" rating on the stock in a research note on Thursday, September 4th. Finally, Mizuho reduced their price objective on Molina Healthcare from $400.00 to $330.00 and set an "outperform" rating on the stock in a research note on Friday, July 11th. Three analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Molina Healthcare currently has an average rating of "Hold" and an average price target of $222.15.

Molina Healthcare Company Profile

Molina Healthcare, Inc provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates in four segments: Medicaid, Medicare, Marketplace, and Other. The company served in across 19 states. The company was founded in 1980 and is headquartered in Long Beach, California.