Molina Healthcare (NYSE:MOH) Shares Gap Up - Here's Why

Key Points

• Molina Healthcare's stock price experienced a significant increase, opening at $194.61 compared to the previous close of $179.15, with shares last trading at $189.47.
• Various analysts have lowered their price targets for Molina Healthcare, with Robert W. Baird adjusting their target from $373 to $179, while the consensus rating remains at "Hold" with an average target of $225.18.
• COO James Woys purchased 10,000 shares at an average cost of $155.94, representing a 15.54% increase in his ownership, while another director sold 700 shares at $153.74.

Molina Healthcare, Inc (NYSE:MOH - Get Free Report) shares gapped up prior to trading on Thursday . The stock had previously closed at $179.15, but opened at $194.61. Molina Healthcare shares last traded at $189.47, with a volume of 275,793 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on MOH shares. Robert W. Baird decreased their price target on shares of Molina Healthcare from $373.00 to $179.00 and set a "neutral" rating on the stock in a report on Friday, July 25th. Mizuho decreased their price target on shares of Molina Healthcare from $400.00 to $330.00 and set an "outperform" rating on the stock in a report on Friday, July 11th. Truist Financial reiterated a "hold" rating and issued a $180.00 price target (down previously from $335.00) on shares of Molina Healthcare in a report on Friday, July 25th. Sanford C. Bernstein cut their target price on shares of Molina Healthcare from $284.00 to $220.00 and set an "outperform" rating on the stock in a research note on Friday, September 5th. Finally, JPMorgan Chase & Co. cut their target price on shares of Molina Healthcare from $272.00 to $184.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 29th. Three investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $225.18.

Molina Healthcare Price Performance

The company's fifty day moving average price is $181.63 and its 200 day moving average price is $267.74. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.66 and a current ratio of 1.66. The firm has a market capitalization of $10.19 billion, a price-to-earnings ratio of 9.26 and a beta of 0.54.

Molina Healthcare (NYSE:MOH - Get Free Report) last posted its quarterly earnings results 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 business had revenue of $11.43 billion during the quarter, compared to analyst estimates of $10.94 billion. During the same period last year, the firm posted $5.86 earnings per share. The company's quarterly revenue was up 15.7% on a year-over-year basis. Equities research analysts expect that Molina Healthcare, Inc will post 24.4 earnings per share for the current year.

Insider Buying and Selling

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

Institutional Trading of Molina Healthcare

A number of hedge funds have recently bought and sold shares of MOH. Amalgamated Bank lifted its holdings in shares of Molina Healthcare by 0.3% in the 1st quarter. Amalgamated Bank now owns 11,580 shares of the company's stock worth $3,814,000 after purchasing an additional 33 shares in the last quarter. Deseret Mutual Benefit Administrators lifted its stake in Molina Healthcare by 60.7% during the 1st quarter. Deseret Mutual Benefit Administrators now owns 90 shares of the company's stock valued at $30,000 after acquiring an additional 34 shares in the last quarter. JLB & Associates Inc. lifted its stake in Molina Healthcare by 0.3% during the 1st quarter. JLB & Associates Inc. now owns 10,626 shares of the company's stock valued at $3,500,000 after acquiring an additional 36 shares in the last quarter. PenderFund Capital Management Ltd. lifted its stake in Molina Healthcare by 0.4% during the 1st quarter. PenderFund Capital Management Ltd. now owns 10,071 shares of the company's stock valued at $3,317,000 after acquiring an additional 40 shares in the last quarter. Finally, Rothschild Investment LLC lifted its stake in Molina Healthcare by 126.3% during the 1st 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. 98.50% of the stock is owned by 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.

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