Molina Healthcare (NYSE:MOH) Shares Gap Down on Disappointing Earnings

Molina Healthcare, Inc (NYSE:MOH - Get Free Report)'s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $190.25, but opened at $173.21. Molina Healthcare shares last traded at $170.06, with a volume of 1,401,875 shares.

The company reported $5.48 earnings per share for the quarter, missing the consensus estimate of $5.50 by ($0.02). Molina Healthcare had a net margin of 2.81% and a return on equity of 28.38%. The company had revenue of $11.43 billion during the quarter, compared to the consensus estimate of $10.94 billion. During the same quarter in the previous year, the business earned $5.86 EPS. Molina Healthcare's revenue was up 15.7% on a year-over-year basis.

Wall Street Analyst Weigh In

MOH has been the subject of several analyst reports. Truist Financial cut their price target on shares of Molina Healthcare from $400.00 to $335.00 and set a "buy" rating for the company in a report on Wednesday, July 16th. Guggenheim initiated coverage on shares of Molina Healthcare in a report on Wednesday, April 9th. They issued a "neutral" rating on the stock. Mizuho set a $330.00 price objective on shares of Molina Healthcare and gave the stock an "outperform" rating in a research note on Friday, July 11th. Wells Fargo & Company lowered their price target on shares of Molina Healthcare from $372.00 to $216.00 and set an "overweight" rating on the stock in a report on Wednesday. Finally, Morgan Stanley downgraded shares of Molina Healthcare from an "overweight" rating to an "equal weight" rating and reduced their price target for the stock from $364.00 to $266.00 in a research report on Thursday, July 10th. Eleven research analysts have rated the stock with a hold rating and six have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $336.43.

Insider Buying and Selling

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

Hedge Funds Weigh In On Molina Healthcare

A number of institutional investors and hedge funds have recently bought and sold shares of MOH. Price T Rowe Associates Inc. MD boosted its holdings in shares of Molina Healthcare by 46.4% in the first quarter. Price T Rowe Associates Inc. MD now owns 3,838,043 shares of the company's stock worth $1,264,214,000 after buying an additional 1,216,903 shares during the period. Wellington Management Group LLP raised its position in Molina Healthcare by 7.4% during the fourth quarter. Wellington Management Group LLP now owns 2,632,232 shares of the company's stock valued at $766,111,000 after acquiring an additional 181,073 shares in the last quarter. FMR LLC raised its position in shares of Molina Healthcare by 31.1% in the fourth quarter. FMR LLC now owns 1,801,113 shares of the company's stock valued at $524,214,000 after purchasing an additional 427,276 shares during the period. T. Rowe Price Investment Management Inc. raised its position in shares of Molina Healthcare by 8.6% in the first quarter. T. Rowe Price Investment Management Inc. now owns 1,487,896 shares of the company's stock valued at $490,099,000 after purchasing an additional 117,796 shares during the period. Finally, Geode Capital Management LLC raised its position in shares of Molina Healthcare by 2.5% in the fourth quarter. Geode Capital Management LLC now owns 1,436,909 shares of the company's stock valued at $417,144,000 after purchasing an additional 34,992 shares during the period. Institutional investors own 98.50% of the company's stock.

Molina Healthcare Stock Performance

The company has a quick ratio of 1.63, a current ratio of 1.63 and a debt-to-equity ratio of 0.87. The company has a market cap of $9.01 billion, a P/E ratio of 8.05, a price-to-earnings-growth ratio of 1.11 and a beta of 0.55. The stock's 50-day moving average price is $273.70 and its 200 day moving average price is $298.06.

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.

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