Molina Healthcare (NYSE: MOH) has seen its price target adjusted by analysts at Cantor Fitzgerald, who have reduced it from $180.00 to $144.00. This adjustment, made in a research note issued on February 5, 2024, comes as the brokerage maintains a “neutral” rating on the stock. The new price target suggests a potential upside of 9.27% from the company’s most recent closing price.
Several other research firms have also updated their evaluations of Molina Healthcare. On January 6, 2024, Sanford C. Bernstein reaffirmed an “outperform” rating with a price target of $224.00. UBS Group lowered its target from $180.00 to $170.00, while Truist Financial set a target of $175.00. Morgan Stanley assigned a target price of $158.00, and Weiss Ratings reiterated a “sell (d+)” rating. Currently, three analysts rate the stock as a Buy, nine as Hold, and two as Sell, leading to an average rating of “Hold” and a consensus target price of $180.07, according to MarketBeat.com.
Quarterly Earnings Report Reveals Setbacks
Molina Healthcare recently announced its quarterly earnings on February 5, 2024, revealing a loss of ($2.75) earnings per share (EPS), significantly below analysts’ consensus estimate of $0.43. The company reported revenue of $11.38 billion, surpassing expectations of $10.90 billion. Despite these revenue figures, the company experienced a net margin of 1.04% and a return on equity of 13.60%. This represented an 8.3% increase in revenue compared to the same quarter the previous year, although EPS showed a decline from $5.05 recorded in the same quarter last year.
Molina Healthcare has set its guidance for fiscal year 2026 at $5.000 EPS, with analysts predicting an average EPS of 24.4 for the current year.
Insider Trading and Institutional Interest
In related news, Director Richard M. Schapiro sold 357 shares of Molina Healthcare stock on November 24, 2023, at an average price of $143.02, yielding a total of $51,058.14. Following this transaction, Schapiro holds 11,352 shares valued at approximately $1,623,563.04, marking a 3.05% reduction in his ownership.
Institutional investors have also made notable adjustments to their holdings in Molina Healthcare. In the fourth quarter, Torren Management LLC acquired a new position valued at around $26,000, while Miller Global Investments LLC also entered with an investment of $27,000. Cromwell Holdings LLC increased its stake by 211.9%, now owning 184 shares worth $32,000 after an additional purchase of 125 shares. First Horizon Advisors Inc. significantly boosted its position by 2,140.0% in the second quarter, now holding 112 shares valued at around $33,000.
Approximately 98.50% of Molina Healthcare’s stock is held by hedge funds and other institutional investors, reflecting strong institutional interest in the company.
Molina Healthcare operates as a managed care organization focused on government-sponsored health insurance programs, including Medicaid managed care plans, Medicare Advantage, and individual Marketplace plans as part of the Affordable Care Act. Through an integrated care model, the company emphasizes preventive and primary care services aimed at improving health outcomes for its members.
