Molina Healthcare (NYSE:MOH) Shares Gap Up on Better-Than-Expected Earnings

Molina Healthcare, Inc. (NYSE:MOH) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $288.72, but opened at $318.00. Molina Healthcare shares last traded at $328.52, with a volume of 188,005 shares.

The company reported $5.86 EPS for the quarter, topping analysts’ consensus estimates of $5.73 by $0.13. The company had revenue of $9.88 billion during the quarter, compared to analysts’ expectations of $9.75 billion. Molina Healthcare had a return on equity of 29.86% and a net margin of 2.99%. Molina Healthcare’s revenue was up 18.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $5.65 EPS.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. JPMorgan Chase & Co. cut their target price 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. Bank of America cut Molina Healthcare from a “neutral” rating to an “underperform” rating and set a $439.00 target price for the company. in a report on Thursday, March 28th. Stephens reissued an “equal weight” rating and set a $390.00 price target on shares of Molina Healthcare in a research note on Thursday, April 25th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $406.00 price objective on shares of Molina Healthcare in a research note on Tuesday. Finally, Robert W. Baird assumed coverage on shares of Molina Healthcare in a report on Thursday, May 30th. They issued an “outperform” rating and a $405.00 price objective for the company. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $382.55.

Insider Buying and Selling

In other Molina Healthcare news, Director Ronna Romney sold 250 shares of the company’s stock in a transaction on Tuesday, May 21st. The shares were sold at an average price of $343.27, for a total transaction of $85,817.50. Following the sale, the director now owns 16,945 shares of the company’s stock, valued at $5,816,710.15. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, COO James Woys sold 10,000 shares of the business’s stock in a transaction on Wednesday, May 22nd. The shares were sold at an average price of $345.15, for a total transaction of $3,451,500.00. Following the transaction, the chief operating officer now owns 53,613 shares in the company, valued at approximately $18,504,526.95. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ronna Romney sold 250 shares of the firm’s stock in a transaction on Tuesday, May 21st. The stock was sold at an average price of $343.27, for a total transaction of $85,817.50. Following the completion of the sale, the director now owns 16,945 shares of the company’s stock, valued at $5,816,710.15. The disclosure for this sale can be found here. 1.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Molina Healthcare

Institutional investors and hedge funds have recently made changes to their positions in the stock. BlackBarn Capital Partners LP acquired a new position in Molina Healthcare during the 4th quarter worth approximately $15,139,000. BI Asset Management Fondsmaeglerselskab A S lifted its holdings in shares of Molina Healthcare by 69.5% in the 1st quarter. BI Asset Management Fondsmaeglerselskab A S now owns 11,809 shares of the company’s stock worth $4,851,000 after purchasing an additional 4,840 shares in the last quarter. Overbrook Management Corp grew its position in Molina Healthcare by 1.1% in the 4th quarter. Overbrook Management Corp now owns 36,908 shares of the company’s stock valued at $13,335,000 after purchasing an additional 391 shares during the period. Nomura Asset Management Co. Ltd. increased its stake in Molina Healthcare by 76.4% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 27,301 shares of the company’s stock valued at $9,864,000 after purchasing an additional 11,820 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its holdings in Molina Healthcare by 5.5% during the fourth quarter. PNC Financial Services Group Inc. now owns 3,208 shares of the company’s stock worth $1,159,000 after buying an additional 167 shares during the last quarter. Institutional investors own 98.50% of the company’s stock.

Molina Healthcare Price Performance

The stock has a market capitalization of $19.13 billion, a P/E ratio of 17.72, a price-to-earnings-growth ratio of 0.88 and a beta of 0.58. The business’s 50 day simple moving average is $307.61 and its two-hundred day simple moving average is $353.85. The company has a quick ratio of 1.49, a current ratio of 1.49 and a debt-to-equity ratio of 0.53.

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.