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TD Cowen Downgrades Molina Healthcare (NYSE:MOH) to Hold

Molina Healthcare logo with Medical background

Key Points

  • TD Cowen has downgraded Molina Healthcare's stock from a "buy" to a "hold" rating, setting a target price of $203.00, which suggests a potential upside of 5.55% from its previous close.
  • Despite the downgrade, other analysts have set varying price targets, with Wells Fargo raising it to $231.00 and Goldman Sachs initiating coverage with a "neutral" rating at $207.00.
  • Molina Healthcare reported a quarterly EPS of $5.48, slightly missing estimates, while its revenue increased by 15.7% year over year, totaling $11.43 billion for the quarter.
  • MarketBeat previews top five stocks to own in November.

Molina Healthcare (NYSE:MOH - Get Free Report) was downgraded by equities research analysts at TD Cowen from a "buy" rating to a "hold" rating in a note issued to investors on Thursday,Finviz reports. They currently have a $203.00 price target on the stock. TD Cowen's target price indicates a potential upside of 5.55% from the company's previous close.

A number of other analysts have also recently issued reports on the stock. The Goldman Sachs Group assumed coverage on shares of Molina Healthcare in a research note on Tuesday. They set a "neutral" rating and a $207.00 target price for the company. Wells Fargo & Company raised their target price on shares of Molina Healthcare from $198.00 to $231.00 and gave the stock an "overweight" rating in a research note on Tuesday, October 7th. Cantor Fitzgerald restated a "neutral" rating and set a $210.00 target price on shares of Molina Healthcare in a research note on Tuesday, August 26th. Sanford C. Bernstein cut their target price on shares of Molina Healthcare from $284.00 to $220.00 and set an "outperform" rating for the company in a research note on Friday, September 5th. Finally, Mizuho cut their target price on shares of Molina Healthcare from $400.00 to $330.00 and set an "outperform" rating for the company in a research note on Friday, July 11th. Three investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $222.15.

View Our Latest Research Report on MOH

Molina Healthcare Stock Performance

Shares of MOH stock opened at $192.33 on Thursday. The stock has a market cap of $10.42 billion, a P/E ratio of 9.48 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. The company has a fifty day moving average price of $180.58 and a two-hundred day moving average price of $246.65. Molina Healthcare has a one year low of $151.95 and a one year high of $359.97.

Molina Healthcare (NYSE:MOH - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The company reported $5.48 EPS for the quarter, missing analysts' consensus estimates of $5.50 by ($0.02). The firm had revenue of $11.43 billion during the quarter, compared to analyst estimates of $10.94 billion. Molina Healthcare had a net margin of 2.60% and a return on equity of 27.72%. The business's revenue was up 15.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $5.86 EPS. As a group, equities analysts predict that Molina Healthcare will post 24.4 EPS for the current year.

Insider Activity at Molina Healthcare

In related news, COO James Woys purchased 10,000 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The shares were bought at an average cost of $155.94 per share, with a total value of $1,559,400.00. Following the acquisition, the chief operating officer owned 74,331 shares of the company's stock, valued at $11,591,176.14. This trade represents a 15.54% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 transaction of $107,618.00. Following the sale, the director directly owned 17,131 shares in the company, valued at $2,633,719.94. This trade represents a 3.93% 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

Several institutional investors and hedge funds have recently added to or reduced their stakes in MOH. Price T Rowe Associates Inc. MD increased its position in Molina Healthcare by 46.4% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 3,838,043 shares of the company's stock valued at $1,264,214,000 after acquiring an additional 1,216,903 shares during the period. Norges Bank acquired a new position in Molina Healthcare in the 2nd quarter valued at approximately $212,113,000. Invesco Ltd. lifted its position in shares of Molina Healthcare by 25.9% in the 2nd quarter. Invesco Ltd. now owns 1,601,574 shares of the company's stock worth $477,109,000 after purchasing an additional 329,759 shares during the period. Viking Global Investors LP acquired a new position in shares of Molina Healthcare in the 2nd quarter worth approximately $79,665,000. Finally, AQR Capital Management LLC lifted its position in shares of Molina Healthcare by 42.7% in the 1st quarter. AQR Capital Management LLC now owns 884,958 shares of the company's stock worth $288,125,000 after purchasing an additional 264,664 shares during the period. 98.50% of the stock is currently owned by institutional investors and hedge funds.

About Molina Healthcare

(Get Free Report)

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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