Molina Healthcare (NYSE:MOH) Shares Gap Up on Strong Earnings

Shares of Molina Healthcare, Inc. (NYSE:MOH) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $275.00, but opened at $325.00. Molina Healthcare shares last traded at $332.36, with a volume of 300,912 shares changing hands.

The company reported $6.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.96 by $0.05. The firm had revenue of $10.34 billion during the quarter, compared to analysts’ expectations of $9.92 billion. Molina Healthcare had a net margin of 2.84% and a return on equity of 28.09%. The company’s revenue was up 21.0% on a year-over-year basis. During the same period in the prior year, the company posted $5.05 EPS.

Analysts Set New Price Targets

Several research analysts have commented on MOH shares. Wells Fargo & Company lifted their target price on Molina Healthcare from $315.00 to $360.00 and gave the stock an “equal weight” rating in a report on Monday, August 5th. Barclays lifted their price objective on Molina Healthcare from $359.00 to $372.00 and gave the stock an “equal weight” rating in a research note on Friday. StockNews.com raised shares of Molina Healthcare from a “hold” rating to a “buy” rating in a research report on Friday, October 18th. JPMorgan Chase & Co. dropped their price target on shares of Molina Healthcare from $420.00 to $395.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 10th. Finally, Truist Financial reduced their price objective on shares of Molina Healthcare from $440.00 to $400.00 and set a “buy” rating on the stock in a research note on Monday, July 15th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, Molina Healthcare currently has a consensus rating of “Moderate Buy” and a consensus target price of $367.00.

Insiders Place Their Bets

In other news, Director Steven J. Orlando sold 1,000 shares of the company’s stock in a transaction dated Tuesday, July 30th. The shares were sold at an average price of $339.21, for a total transaction of $339,210.00. Following the transaction, the director now owns 18,025 shares in the company, valued at approximately $6,114,260.25. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In other news, Director Steven J. Orlando sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, July 30th. The stock was sold at an average price of $339.21, for a total value of $339,210.00. Following the completion of the sale, the director now directly owns 18,025 shares in the company, valued at $6,114,260.25. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Maurice Hebert sold 393 shares of the company’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $346.52, for a total value of $136,182.36. Following the transaction, the chief accounting officer now directly owns 9,473 shares in the company, valued at approximately $3,282,583.96. This trade represents a 0.00 % 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

Several hedge funds have recently bought and sold shares of the business. Capital International Investors raised its holdings in Molina Healthcare by 0.9% during the first quarter. Capital International Investors now owns 1,665,801 shares of the company’s stock worth $684,361,000 after buying an additional 15,264 shares during the last quarter. Renaissance Technologies LLC lifted its position in Molina Healthcare by 13.3% in the 2nd quarter. Renaissance Technologies LLC now owns 949,691 shares of the company’s stock valued at $282,343,000 after acquiring an additional 111,154 shares in the last quarter. Boston Partners boosted its stake in Molina Healthcare by 14.8% during the 1st quarter. Boston Partners now owns 798,950 shares of the company’s stock valued at $328,101,000 after purchasing an additional 103,245 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Molina Healthcare by 22.0% during the 2nd quarter. Dimensional Fund Advisors LP now owns 470,932 shares of the company’s stock worth $140,026,000 after purchasing an additional 84,929 shares in the last quarter. Finally, AQR Capital Management LLC raised its stake in shares of Molina Healthcare by 36.2% in the second quarter. AQR Capital Management LLC now owns 463,537 shares of the company’s stock worth $137,810,000 after purchasing an additional 123,121 shares during the last quarter. Institutional investors and hedge funds own 98.50% of the company’s stock.

Molina Healthcare Stock Up 0.6 %

The company has a market cap of $19.08 billion, a P/E ratio of 17.84, a price-to-earnings-growth ratio of 0.99 and a beta of 0.58. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.57 and a quick ratio of 1.57. The stock has a fifty day moving average price of $335.23 and a two-hundred day moving average price of $330.07.

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.