Molina Healthcare (NYSE:MOH) Lowered to Hold Rating by Truist Financial

Key Points

• Truist Financial has reiterated a "hold" rating on Molina Healthcare's stock, lowering their price target from $335.00 to $180.00, which suggests a potential upside of 7.01%.
• The company recently reported earnings of $5.48 per share for the last quarter, falling short of analysts' expectations of $5.50, despite revenues rising to $11.43 billion.
• Insider activity has been notable, with CEO Joseph M. Zubretsky selling 87,500 shares at around $320.06, resulting in a 25.35% decrease in his ownership of the stock.
• Molina Healthcare operates in four segments: Medicaid, Medicare, Marketplace, and Other, serving low-income individuals across 19 states.

Molina Healthcare (NYSE:MOH - Get Free Report) was downgraded by research analysts at Truist Financial from a "buy" rating to a "hold" rating in a note issued to investors on Friday, Marketbeat.com reports. They currently have a $180.00 price target on the stock, down from their previous price target of $335.00. Truist Financial's target price indicates a potential upside of 9.11% from the stock's previous close.

Several other equities analysts have also recently issued reports on the stock. Guggenheim started coverage on shares of Molina Healthcare in a research note on Wednesday, April 9th. They set a "neutral" rating on the stock. Robert W. Baird lowered their target price on shares of Molina Healthcare from $373.00 to $179.00 and set a "neutral" rating on the stock in a research note on Friday. Mizuho lowered their target price on shares of Molina Healthcare from $400.00 to $330.00 and set an "outperform" rating on the stock in a research note on Friday, July 11th. Sanford C. Bernstein started coverage on shares of Molina Healthcare in a research note on Tuesday, April 22nd. They set an "outperform" rating and a $414.00 target price on the stock. Finally, Cantor Fitzgerald restated a "neutral" rating and set a $210.00 target price (down previously from $312.00) on shares of Molina Healthcare in a research note on Friday. Twelve analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, Molina Healthcare currently has a consensus rating of "Hold" and a consensus target price of $267.42.

Molina Healthcare Stock Up 4.3%

Shares of NYSE:MOH traded up $6.75 during midday trading on Friday, reaching $164.97. The company's stock had a trading volume of 4,892,162 shares, compared to its average volume of 1,704,853. Molina Healthcare has a 12-month low of $156.36 and a 12-month high of $365.23. The firm has a 50 day moving average of $267.38 and a 200-day moving average of $296.19. The firm has a market capitalization of $8.94 billion, a P/E ratio of 8.13, a PEG ratio of 1.18 and a beta of 0.55. The company has a quick ratio of 1.63, a current ratio of 1.66 and a debt-to-equity ratio of 0.77.

Molina Healthcare (NYSE:MOH - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The company reported $5.48 EPS for the quarter, missing the consensus estimate of $5.50 by ($0.02). Molina Healthcare had a net margin of 2.60% and a return on equity of 27.72%. The firm had revenue of $11.43 billion for the quarter, compared to analysts' expectations of $10.94 billion. During the same period last year, the company posted $5.86 earnings per share. The business's revenue for the quarter was up 15.7% compared to the same quarter last year. On average, research analysts anticipate that Molina Healthcare will post 24.4 earnings per share for the current year.

Insider Buying and Selling

In other Molina Healthcare news, Director Richard M. Schapiro sold 669 shares of the stock in a transaction that occurred on Tuesday, April 29th. The shares were sold at an average price of $320.50, for a total transaction of $214,414.50. Following the completion of the sale, the director directly owned 11,244 shares of the company's stock, valued at $3,603,702. This trade represents a 5.62% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Joseph M. Zubretsky sold 87,500 shares of the stock in a transaction that occurred on Wednesday, April 30th. The shares were sold at an average price of $320.06, for a total transaction of $28,005,250.00. Following the sale, the chief executive officer directly owned 257,715 shares of the company's stock, valued at approximately $82,484,262.90. This trade represents a 25.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Rothschild Investment LLC raised its holdings in shares of Molina Healthcare by 126.3% in the first quarter. Rothschild Investment LLC now owns 86 shares of the company's stock valued at $28,000 after acquiring an additional 48 shares in the last quarter. Zions Bancorporation National Association UT acquired a new stake in Molina Healthcare in the 1st quarter valued at approximately $29,000. Deseret Mutual Benefit Administrators boosted its position in shares of Molina Healthcare by 60.7% in the first quarter. Deseret Mutual Benefit Administrators now owns 90 shares of the company's stock worth $30,000 after buying an additional 34 shares during the period. Elequin Capital LP increased its stake in shares of Molina Healthcare by 170.6% in the first quarter. Elequin Capital LP now owns 92 shares of the company's stock worth $30,000 after purchasing an additional 58 shares during the period. Finally, Colonial Trust Co SC boosted its holdings in shares of Molina Healthcare by 930.0% in the 4th quarter. Colonial Trust Co SC now owns 103 shares of the company's stock worth $30,000 after acquiring an additional 93 shares in the last quarter. 98.50% of the stock is owned by hedge funds and other institutional investors.

About Molina Healthcare

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.