Molina Healthcare (NYSE:MOH) Shares Climb 5% - Should You Buy?

Key Points

• Molina Healthcare shares rose 5% to about $206.68, above the company’s consensus analyst price target of $202.44.
• Analyst sentiment remains mixed: one firm upgraded the stock to “strong buy,” but most ratings are holds, with several firms recently cutting their price targets.
• Molina exceeded quarterly earnings and revenue expectations, reporting $1.51 in EPS and $10.87 billion in revenue, though revenue fell 4.8% year over year and the company posted a slightly negative net margin.

Shares of Molina Healthcare, Inc (NYSE:MOH - Get Free Report) were up 5% during mid-day trading on Monday. The stock traded as high as $206.30 and last traded at $206.68. Approximately 327,528 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 1,294,201 shares. The stock had previously closed at $196.93.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Zacks Research raised shares of Molina Healthcare from a "hold" rating to a "strong-buy" rating in a report on Tuesday, September 22nd. Wells Fargo & Company dropped their price objective on Molina Healthcare from $235.00 to $220.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 28th. Cantor Fitzgerald reissued a "neutral" rating on shares of Molina Healthcare in a research report on Friday. Royal Bank Of Canada dropped their price objective on shares of Molina Healthcare from $248.00 to $218.00 and set a "sector perform" rating on the stock in a research note on Friday, July 24th. Finally, Sanford C. Bernstein set a $286.00 price target on shares of Molina Healthcare in a research report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $202.44.

Molina Healthcare Price Performance

The firm has a fifty day simple moving average of $198.06 and a two-hundred day simple moving average of $191.32. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.68 and a current ratio of 1.68. The firm has a market cap of $10.68 billion, a PE ratio of -1,138.34, a PEG ratio of 28.22 and a beta of 0.78.

Molina Healthcare (NYSE:MOH - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The company reported $1.51 earnings per share for the quarter, beating analysts' consensus estimates of $1.39 by $0.12. Molina Healthcare had a negative net margin of 0.02% and a positive return on equity of 3.73%. The business had revenue of $10.87 billion for the quarter, compared to analysts' expectations of $10.83 billion. During the same quarter in the previous year, the business posted $5.48 earnings per share. The business's revenue was down 4.8% compared to the same quarter last year. Equities analysts predict that Molina Healthcare, Inc will post 5.29 EPS for the current fiscal year.

Hedge Funds Weigh In On Molina Healthcare

Large investors have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in shares of Molina Healthcare during the 2nd quarter worth $1,503,052,000. Dimensional Fund Advisors LP lifted its holdings in shares of Molina Healthcare by 23.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,394,882 shares of the company's stock valued at $185,929,000 after buying an additional 267,121 shares during the last quarter. Wellington Management Group LLP lifted its stake in shares of Molina Healthcare by 11.9% in the 2nd quarter. Wellington Management Group LLP now owns 1,267,207 shares of the company's stock valued at $289,810,000 after purchasing an additional 135,247 shares during the last quarter. 8 Knots Management LLC bought a new position in shares of Molina Healthcare in the fourth quarter valued at approximately $198,942,000. Finally, Manning & Napier Advisors LLC bought a new stake in Molina Healthcare during the 2nd quarter valued at approximately $152,339,000. Institutional investors and hedge funds own 98.50% of the company's stock.

Molina Healthcare Company Profile

Molina Healthcare, Inc is a managed-care company that provides health insurance and related healthcare services primarily to individuals and families who receive coverage through government-sponsored programs. Its main lines of business include Medicaid, Medicare, and health plans offered through government marketplaces.

The company works with state and federal agencies, healthcare providers, and community organizations to coordinate care for members, including low-income adults and children, seniors, and people with disabilities or complex medical needs.

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